Vietnam hospital market opens up to investors
Healthcare assets in Vietnam’s market of 100 million people are attracting attention from investors looking to expand in or enter the market.
Although Vietnam’s merger and acquisition (M&A) transactions have slowed, with 35% lower transaction value in 2022 compared to 2021, healthcare may buck the trend this year.
PwC, in its “2023 Global M&A Industry Trends Outlook” has predicted that healthcare will be one of a handful of the top sectors drawing FDI to Vietnam this year.
Thomson Medical Group, a Singapore-based healthcare company, has confirmed with Singapore newspaper Business Times that it is in advanced talks to buy a controlling stake in French-backed FV Hospital in Ho Chi Minh City after a Bloomberg report on Thursday about the discussions.
The healthcare company, backed by tycoon Peter Lim, has surpassed other interested candidates to remain in the bidding and is working with a financial adviser on the potential acquisition, according to the report, which says the process is private.
In 2017, Quadria Capital, an Asian healthcare-focused private equity firm, announced it had bought a stake in FV Hospital for an undisclosed amount. Other investors who joined the investment included funds managed by Neuberger Berman Private Equity and DEG – the German development finance institution under KfW, a German state-owned investment and development bank. In 2022, Bloomberg reported that Quadria Capital was exploring the sale of its stake in FV, which could fetch around $300 million to $400 million.
FV opened in HCMC in 2003, and the general hospital’s current resources include 220 beds and around 950 staff.
Vietnam's leading investment management group VinaCapital is exploring the sale of its minority stake in Thu Cuc Medical System TCI in a deal that could value the Hanoi private hospital operator at between $150 million and $200 million, Reuters reported on Tuesday, citing two sources with direct knowledge of the matter.
The process is also private, and the sources declined to be named. The two added that VinaCapital is in talks with at least one financial investor on the potential sale of its roughly 30% stake in Thu Cuc Medical.
A VinaCapital-led consortium paid $26.7 million for the stake in 2020, one of the sources told Reuters. "Because TCI is well-managed and highly regarded, we have, over time, received a number of inquiries from parties interested in acquiring our stake," a VinaCapital spokesperson said in an email to Reuters.

CT scanner room at the Thu Cuc general hospital in Hanoi, northern Vietnam. Photo courtesy of the hospital.
Thu Cuc Medical did not respond to a request for comment from Reuters, the international news service agency said.
It added investors are now betting on the Vietnamese hospital and healthcare sector's ability to weather a challenging economic environment.
Thu Cuc Medical was founded in 2011 and now operates a general hospital in Hanoi's Tay Ho district and three other clinics in the Vietnamese capital.
At present, VinaCapital has more than $3.9 billion of assets under management, including a closed-end fund listed on the London Stock Exchange.
Clear growth opportunities
Vietnam’s healthcare sector is opening up to investors. The EU-Vietnam Free Trade Agreement (EVFTA), that took effect in 2020, has eliminated tariffs for around 71% of pharmaceutical products, and the remaining tariffs will be gradually phased out upon the full implementation of the agreement.
As part of the agreement, Vietnam has committed to allowing EU-invested enterprises to import pharmaceuticals into Vietnam and to establish 100%-foreign owned companies in the pharmaceuticals sector. This could boost the availability of high-quality medications for Vietnamese consumers while increasing the profitability of EU firms in the industry.
Vietnam’s hospital market is anticipated to witness a steady compound annual growth rate (CAGR) of 6.2% and reach some $11.23 billion by 2028, according to the “Vietnam Hospital Market Insights Report 2023” by the global market research company Research and Markets.
The study, released on Thursday, said that the hospital market has witnessed significant growth over the past few years due to several factors that have contributed to the proliferation of the healthcare industry in the country.
“The growing middle class is becoming more health-conscious, leading to an increase in demand for healthcare services. Additionally, the country's healthcare infrastructure is expanding, resulting in better access to healthcare services,” the report said.
Meanwhile, Vietnam's population is aging, with the number of people aged 60 and above expected to increase from 12.5 million in 2020 to 25 million by 2050. This demographic shift has led to an increase in demand for healthcare services, particularly for chronic diseases that are more prevalent among older adults.
The study notes that Vietnam is rapidly urbanizing, with the proportion of the population living in urban areas expected to increase from 35% in 2020 to 50% by 2030. Urbanization is associated with lifestyle changes, such as a shift towards more sedentary jobs, which has contributed to an increase in chronic diseases such as obesity, diabetes, and hypertension.
Another factor that is luring investors is that Vietnam's government has been actively promoting the development of its healthcare industry in recent years. The government has recognized the importance of a robust healthcare system in improving the country's overall well-being and supporting its growing economy.
Research and Markets also mentions increasing medical tourism in Vietnam.
“Vietnam has emerged as one of the leading medical tourism destinations in Southeast Asia. The country's healthcare industry has been growing rapidly, thanks to its government's initiatives to improve healthcare infrastructure and promote medical tourism."
The reasons behind the increasing popularity of medical tourism in Vietnam include high-quality healthcare services.
“Vietnamese hospitals are equipped with state-of-the-art medical equipment, and the country's healthcare professionals are highly trained and skilled. This has led to an increasing number of patients from other countries coming to Vietnam for medical treatment,” the study added.
- Read More
CMC Corporation breaks ground on $300 mln technology hub in Hanoi
Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.
Industries - Mon, June 2, 2025 | 11:19 pm GMT+7
Thailand’s industrial output up after 9-month decline
Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.
Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7
Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research
Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.
Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7
Masan MEATLife stock jumps on continued profit momentum
The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.
Companies - Mon, June 2, 2025 | 10:34 pm GMT+7
Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms
The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.
Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7
Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert
A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.
Economy - Mon, June 2, 2025 | 4:56 pm GMT+7
Vietnam Vaccine JSC launches high-quality healthcare shop chain
Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.
Companies - Mon, June 2, 2025 | 4:05 pm GMT+7
Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years
PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.
Energy - Mon, June 2, 2025 | 2:01 pm GMT+7
Vietnam sees renewed output expansion, improved business confidence in May: S&P Global
May saw a more stable picture in terms of U.S. tariff policies than April, helping lead to a renewed expansion in output and improved business confidence, says Andrew Harker, economics director at S&P Global Market Intelligence.
Economy - Mon, June 2, 2025 | 9:18 am GMT+7
Vietnam considers developing 2 inter-regional renewable energy service and industry hubs
The Ministry of Industry and Trade (MoIT) has proposed building two inter-regional renewable energy service and industry hubs in the country.
Economy - Mon, June 2, 2025 | 8:00 am GMT+7
Investors advised to take profits from stocks having risen sharply
Investors should maintain a balanced stock allocation in their portfolios and consider buying opportunities if the VN-Index retreats to the 1,300-1,320 point range, say market experts.
Finance - Sun, June 1, 2025 | 8:10 pm GMT+7
Shares of Vietnam's leading jewelry maker PNJ jump over 30% ahead of gold inspection report
Shares of Phu Nhuan Jewelry JSC (PNJ), a leading jewelry producer in Vietnam, rallied sharply ahead of the central bank’s Friday release of its gold market inspection findings.
Companies - Sun, June 1, 2025 | 1:14 pm GMT+7
Vietnamese firm takes over 40-year-old Pierre Cardin shoe chain in Thailand
Emall Vietnam, which owns a network of 100 high-end business shoe stores under the Pierre Cardin and Oscar brands in Vietnam, has taken over the entire Pierre Cardin shoe system in Thailand.
Companies - Sun, June 1, 2025 | 10:29 am GMT+7
Southern Vietnam province Ba Ria-Vung Tau okays 53 projects
Ba Ria-Vung Tau authorities on Friday granted in-principle approvals or investment registration certificates for 53 projects, including a green light for a $400 million investment capital hike of the $5.4 billion Long Son Petrochemicals Complex.
Industries - Sun, June 1, 2025 | 8:00 am GMT+7
Who to receive over 97 mln ESOP shares from Vietnam's leading developer Novaland
Novaland, a major real estate developer in Vietnam, will simultaneously implement plans to issue bonus shares and offer ESOP (employee stock ownership plan) shares, with a total issuance rate of 5%, equivalent to more than 97 million units.
Companies - Sat, May 31, 2025 | 11:09 pm GMT+7
Vietnam billionaire Pham Nhat Vuong to contribute 48 mln Vingroup shares to VinSpeed
Billionaire Pham Nhat Vuong has registered to transfer more than 48 million Vingroup (VIC) shares to the newly-established VinSpeed that registered to build the North-South high-speed railway project.
Companies - Sat, May 31, 2025 | 7:14 pm GMT+7