Vietnam healthtech sector turns investment magnet
Medical and pharmaceutical firms accounted for a lion’s share of $529 million that Vietnamese startups attracted in 2023 and this trend is set to continue, industry insiders say.

An FPT Long Chau pharma outlet in Ho Chi Minh City, southern Vietnam. Photo by The Investor/Minh Thong.
Late this January, a strategic partnership was struck by FPT Long Chau, the pharma arm of tech giant FPT Corporation, and IHH Healthcare Singapore.
The value of the deal was not disclosed. However, this can be considered a “first step,” marking the Vietnam presence of a famous name in the Asian healthcare industry.
IHH Healthcare Singapore has a network of 83 hospitals and medical facilities spanning 10 countries including Malaysia, Singapore, India and several European countries.
It posted revenues of more than $4.3 billion and pre-tax profits of $1 billion in 2023, after recording corresponding figures of $3.4 billion and $1.1 billion a year earlier.
Peter Chow, acting CEO of IHH Singapore, said they chose to "join hands" with FPT Long Chau instead of an M&A tech deal. He did not elaborate on the choice.
"We appreciate the achievements FPT Long Chau has made as a leading pharmaceutical retailer in Vietnam and are honored to be part of this to build a more robust healthcare ecosystem.
"This strategic cooperation between Long Chau and Parkway is not just about sharing expertise and advanced treatment techniques but also about creating a comprehensive healthcare environment that would improve the lives of the people of Vietnam," he said.
Chow said a wave of leading regional medical corporations landing in Vietnam showcases the market's development potential. Vietnam has a growing economy and the government’s open policies to attract investment as well as the people’s expectations for quality medical services are potent attractions, he added.
He said Singapore’s demographics, with one in every four people 65 years old or older, prompted the island nation’s healthcare industry to develop strongly and early. This has been followed by a wave of investments in other developing markets like Vietnam.
Pricing is a challenge for Vietnam's healthcare industry, Chow said. If Vietnam wants to develop, it must make medical cost suitable for the majority of indigenous people, he added.
Vibrant M&A activity
Meanwhile, an M&A market report by BDA Partners, a global investment banking advisor for Asia, says the healthcare industry was one of the industries that saw vibrant M&A activity in 2023, in terms of both transaction volume and value, with up to 15 deals worth nearly $765 million. The average transaction value in the healthcare sector in 2023 hit $100 million, up from $65 million in 2022.
The report attributes the development to people's increased awareness of healthcare, stability and resilience to economic recession, favorable demographic factors and a growing middleclass with unmet demand for quality healthcare services.
The Vietnam Innovation & Tech Investment Report 2024 published by the National Innovation Center (NIC) and investment fund Do Ventures shows that in 2023, Vietnamese tech startups received a total investment of $529 million, a 17% drop from the previous year.
While challenging global worldwide economic conditions contributed to this fall, the healthcare sector witnessed record-high investments, making it the leader with a remarkable year-on-year growth of 391%, the report says.
Other sectors with impressive growth included education, which boasted a 107% year-on-year increase; and travel and hospitality, up 305% and 132%, respectively.
The report says that besides market factors, technology was another reason why medical and pharmaceutical companies in general and startups in this industry in particular have received large investments.
Last year, Singapore took the lead as the most active investor in Vietnam’s tech sector. In Southeast Asia, Vietnam stood third in the number of deals and investment value after Singapore and Indonesia.
Over the last 10 years (2014-2023), more than $4.6 billion was poured into Vietnamese startups through 835 deals. Of these, 2021 witnessed 165 deals worth more than $1.44 billion, the largest so far.
Vu Quoc Huy, director of NIC, said Vietnam, with its 100-million population, has been an attractive destination for technology investment in the region in recent years, with its the digital economy seeing the highest growth in Southeast Asia for two consecutive years (2022 and 2023).
"Amidst the uncertainties of the global economy, technological innovation has become an important factor promoting Vietnam's sustainable economic development," Huy said.
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