The new facility is expected to possess an initial capacity of 90 million units per year in addition to possible expansion of approximately 150 million units.
Operations at the plant are anticipated to begin by 2015.
Sanofi chief executive officer Christopher Viehbacher said the investment marks the largest investment made by the company in Vietnam till date.
"Sanofi has been present in Vietnam for more than 50 years and has built the number 1 position in one of the most dynamic South East Asian countries," Viehbacher added.
"This new investment will contribute to further strengthen Sanofi’s leadership position in emerging markets."