Vietnam sees famous medical and pharma M&A deals in 2023

By Lien Thuong, Minh Hue
Wed, December 27, 2023 | 10:36 am GMT+7

The year 2023 has witnessed many large M&A deals in the medical and pharmaceutical industry, with two international hospitals falling into the hands of foreign owners and a wave of foreign investors’ acquisitions of Vietnamese drug companies.

Two major hospitals acquired by foreign investors

A series of recent large mergers and acquisitions (M&A) involving international corporations has shown the development potential of the Vietnamese medical market. According to statistics, medical tourism in Vietnam is worth about $2 billion with more than 300,000 international visitors coming for examinations and treatment each year.

The largest M&A deal in the medical and pharmaceutical industry in 2023 was the acquisition of Ho Chi Minh City-based FV Hospital by Thomson Medical Group (TMG) from Singapore. It was also the largest healthcare acquisition in Southeast Asia since 2020.

The deal value reached $381.4 million, including $359.6 million up front and $21.8 million to be delivered when FV Hospital achieves certain performance milestones.

FV Hospital in Ho Chi Minh City. Photo courtesy of the hospital.

FV Hospital in Ho Chi Minh City. Photo courtesy of the hospital.

The purchase will be funded via the group’s internal resources and external borrowing from financial institutions.

The deal highlights the growing significance of Vietnam’s burgeoning healthcare market, the Singaporean firm said in a release.

“FV Hospital provides a strategic foothold for us in Vietnam and a gateway to grow and focus on future investments in this fast-growing market,” said Kiat Lim, TMG’s executive vice chairman.

Under the terms of the sales and purchase agreement, TMG has agreed to acquire all of Far East Medical Vietnam Ltd. (FEMV). FEMV operates a range of healthcare facilities in Vietnam, including the 220-bed multidisciplinary tertiary FV Hospital and a network of primary and specialist clinics.

FEMV, also called FV Group, currently has over 1,600 staffers, including more than 200 Vietnamese and expatriate doctors. FV Hospital has since 2013 operated an outpatient clinic known as FV Saigon Clinic in the heart of District 1, Ho Chi Minh City’s traditional business district.

In October, the HCMC-headquartered American International Hospital (AIH) unveiled a comprehensive strategic partnership agreement with Raffles Medical Group (RMG) of Singaporean billionaire Loo Choon Yong.

The two sides did not disclose the specific value, but in July, Savills Vietnam valued AIH at $45.6 million.

Under the deal, from October, RMG would engage in the governance and operation of AIH and develop a number of specialized services such as oncology and general surgery.

Previously, RMG said it would buy the majority of shares of My My Trading - Services Company Limited, the investor of AIH.

The AIH acquisition will help RMG capture growth opportunities from the boom in demand for private healthcare services in Vietnam. At the same time, it supports RMG's ambition to become a high-quality medical and healthcare service provider chosen by people in the region.

AIH officially came into operation in 2018 with a capacity of 120 inpatient beds and a staff of about 500. This is a project of Tien Phuoc Group, a long-standing real estate developer in Ho Chi Minh City.

"Wave" of pharmaceutical M&As

In August, South Korean pharmaceutical group Dongwha Pharm spent KRW39 billion (about $30 million) to buy a 51% stake in Vietnam’s Trung Son Pharma. This is considered the biggest value deal in the pharmaceutical industry.

For a long time, Dongwha had intended to make deeper inroads into the Vietnamese market with many products distributed by the firm. Witnessing the growing demand for Korean vitamins, red ginseng and beauty care products in Vietnam, Dongwha plans to boost sales of these products.

Trung Son Pharma is a famous name in the Vietnamese pharmaceutical market, with a chain of 140 stores across throughout the southern region.

This brand was founded in 1997 by the couple of doctor Truong Thanh Son and pharmacist Truong Hoang Thanh Truc, offering diverse products from prescription drugs, over-the-counter (OTC) medicine, and supplementary foods, cosmetics and medical equipment, to healthcare and beauty products.

Since 2019, Trung Son Pharma has grown an average of 46% per year, reaching a revenue of VND13.5 trillion ($554.76 million) in 2022.

Another notable deal in the pharmaceutical industry in 2023 was Japan’s ASKA Pharmaceutical Group spending VND180 billion ($7.4 million) to increase its ownership in Ha Tay Pharmaceutical JSC (DHT). When the deal is completed, ASKA will hold 26.8 million DHT shares, or nearly 33% of charter capital.

DHT plans to spend VND78 billion ($3.21 million) building a high-tech pharmaceutical factory and the remaining VND102 billion restructuring bank loans to improve its financial self-sufficiency and reduce financial pressure.

In addition, the DHT board of directors decided to temporarily cap the foreign ownership ratio at 44.31%.

Established in 1920, ASKA specializes in providing products for internal medicine, obstetrics and gynecology and urology. In April 2020, the company established an international business department to promote growth and development through operations in foreign markets.

The Japanese pharmaceutical company said the purpose of this transaction is to establish a base in Southeast Asia as a launch pad for expanding operations in the international market.

In early 2021, ASKA completed a deal to buy 6.6 million DHT shares, becoming the largest shareholder in this pharmaceutical company with a 24.9% stake.

In April, Poland’s Adamed Pharma announced that it had bought a 100% stake in Dat Vi Phu Pharmaceuticals JSC (DaviPharm). This was considered the pharmaceutical industry's first major M&A deal in 2023.

The deal value was not disclosed, but the Polish group's presence at DaviPharm is expected to help the company become one of the largest drug manufacturers and a provider of high-quality drugs at affordable prices in Vietnam, as stated by Dr. Malgorzata Adamkiewicz, head of the company’s supervisory board.

Previously, Adamed Pharma owned 70% of DaviPharm shares.

Founded in 1986 in Poland, Adamed Pharma is a giant in the field of pharmaceuticals and biotechnology. By the end of 2022, the group owned two manufacturing plants in Poland and one in Vietnam, with over 200 patents in many countries around the world.

DaviPharm is a manufacturer of more than 300 medicinal products in Vietnam, Cambodia, Philippines and Myanmar. It owns a factory capable of producing up to 1.2 billion tablets per year in the southern province of Binh Duong.

Vietnam's healthcare market was worth $16.2 billion in 2020, accounting for 6.0% of GDP, said Vietnam Report, a leading local ranking and research company.

Total health spending increased from $16.1 billion in 2017 to over $20 billion in 2021. It is projected to reach $23.3 billion in 2025 and $33.8 billion in 2030. Pharmaceutical spending also rose to over $6.6 billion in 2021.

Comments (0)
  • Read More
6,000 international tourists arrive in Vietnam on 5-star cruises

6,000 international tourists arrive in Vietnam on 5-star cruises

Nearly 6,000 international guests have arrived in Vietnam aboard five-star cruise ships in the last two days and are set to visit a range of famous natural, historic and cultural landmarks in different regions.

Companies - Sat, October 26, 2024 | 10:08 pm GMT+7

Chinese online retail platform Temu submits papers for Vietnam operations

Chinese online retail platform Temu submits papers for Vietnam operations

Chinese online retail platform Temu has submitted a document to Vietnamese authorities for registering its Vietnam operations.

Companies - Sat, October 26, 2024 | 9:38 pm GMT+7

Five investors register for $2.2 bln LNG power project in central Vietnam

Five investors register for $2.2 bln LNG power project in central Vietnam

Five investors have applied to join the $2.2 billion Quynh Lap LNG-fired power plant project in Nghe An, according to the provincial Department of Planning and Investment.

Investing - Sat, October 26, 2024 | 4:00 pm GMT+7

Southern Vietnam coastal province promotes fish sauce, chocolate, crafts at HCMC show

Southern Vietnam coastal province promotes fish sauce, chocolate, crafts at HCMC show

Farmers and businesses from Ba Ria-Vung Tau are promoting a range of specialties and OCOP (One Commune One Product) products from the province at an exhibition in Ho Chi Minh City.

Companies - Sat, October 26, 2024 | 2:19 pm GMT+7

Northern Vietnam province Quang Ninh has new Party chief

Northern Vietnam province Quang Ninh has new Party chief

Vu Dai Thang, a Party Central Committee member and Party chief of Quang Binh province in central Vietnam, has been assigned as Party chief of Quang Ninh province for the 2020-2025 term.

Politics - Sat, October 26, 2024 | 1:40 pm GMT+7

Thai-controlled Sabeco to start acquiring 43% stake in brewer Sabibeco next week

Thai-controlled Sabeco to start acquiring 43% stake in brewer Sabibeco next week

Thai Beverage-controlled Sabeco will start its public tender offer to buy an additional 37.81 million shares, or a 43.2% stake, in local brewer Sabibeco on October 31 until December 25.

Companies - Sat, October 26, 2024 | 11:20 am GMT+7

Vietnam mining group Vinacomin appoints new CEO

Vietnam mining group Vinacomin appoints new CEO

Vu Anh Tuan, a board member of state-owned Vietnam Coal and Mineral Industry Group (Vinacomin) has been appointed general director, starting from last Monday.

Companies - Sat, October 26, 2024 | 11:14 am GMT+7

Foreign players net sell $46.4 mln worth of Vietnam equities this week

Foreign players net sell $46.4 mln worth of Vietnam equities this week

Foreign investors continued to net sell on the Vietnamese stock market this week, to the tune of VND1,178 billion ($46.43 million) as the U.S. dollar extended its strengthening.

Finance - Sat, October 26, 2024 | 9:39 am GMT+7

Northern Vietnam province sees five-year registered FDI exceeds target by 181%

Northern Vietnam province sees five-year registered FDI exceeds target by 181%

Quang Ninh province in northern Vietnam expects to attract $10 billion in registered foreign direct investment (FDI) in the 2021-2025 period, local authorities say.

Investing - Sat, October 26, 2024 | 8:00 am GMT+7

Vietnam invites state-owned Chinese giant to join $67 bln high-speed railway project

Vietnam invites state-owned Chinese giant to join $67 bln high-speed railway project

Vietnam’s Commission for the Management of State Capital at Enterprises (CMSC) has invited China State Construction Engineering Corporation (CSCEC) to participate in and "make contributions" to the country’s $67-billion cross-country high-speed railway project.

Infrastructure - Fri, October 25, 2024 | 7:35 pm GMT+7

Vietnam National Assembly Office Chair unexpectedly steps down

Vietnam National Assembly Office Chair unexpectedly steps down

Vietnam’s National Assembly (NA), the country's supreme legislative body, has unexpectedly relieved Bui Van Cuong from the post of its General Secretary.

Politics - Fri, October 25, 2024 | 7:19 pm GMT+7

Vietnamese lender MSB owned 34% by 9 major shareholders holding over 1% stake each

Vietnamese lender MSB owned 34% by 9 major shareholders holding over 1% stake each

A total of 33.69% of Vietnam Maritime Commercial Joint Stock Bank, or MSB, is held by nine institutional shareholders who own an over 1% stake each, according to its updated list of shareholders.

Banking - Fri, October 25, 2024 | 4:24 pm GMT+7

Belarus seeks cooperation with Vietnam in manufacturing automobiles

Belarus seeks cooperation with Vietnam in manufacturing automobiles

Belarus wants to collaborate with Vietnam in manufacturing automobiles for export, President Aleksander Lukashenko said to his Vietnamese counterpart Pham Minh Chinh at a Thursday meeting on the sidelines of the BRICS Summit.

Industries - Fri, October 25, 2024 | 4:08 pm GMT+7

Tran Cam Tu promoted to permanent member of Vietnam Party Central Committee’s Secretariat

Tran Cam Tu promoted to permanent member of Vietnam Party Central Committee’s Secretariat

Tran Cam Tu, a member of the Politburo and the Party Central Committee's Secretariat, was appointed permanent member of the Secretariat by the Politburo on Friday.

Politics - Fri, October 25, 2024 | 3:56 pm GMT+7

SeABank offers comprehensive financial solutions to support import-export businesses

SeABank offers comprehensive financial solutions to support import-export businesses

SeABank has developed a diverse range of flexible financial products to help import-export enterprises optimize cash flow and ensure smooth operations.

Companies - Fri, October 25, 2024 | 3:34 pm GMT+7

SeABank empowers women-owned businesses with exceptional benefits and specialized support

SeABank empowers women-owned businesses with exceptional benefits and specialized support

To support and facilitate the growth of women-owned enterprises, SeABank has introduced a range of exclusive programs and specialized financial products, reinforcing its goal of becoming a trusted financial partner for women-owned businesses in Vietnam.

Companies - Fri, October 25, 2024 | 3:22 pm GMT+7