Warburg Pincus to invest in Xuyen A hospital chain in Vietnam

Warburg Pincus, one of the leading U.S. investment funds, will invest in Xuyen A, a major private hospital chain in Vietnam.

Minh Do, country director of Warburg Pincus, and Nguyen Thi Thu Thuy, chairwoman of Xuyen A Hospital Investment JSC, signed an agreement for the move in Ho Chi Minh City on Monday, as part of the latter’s 10-year anniversary. The two sides did not reveal details about the cooperation.

As part of the ceremony, Xuyen A hospital also launched its Xuyen A oncology center and interprofessional collaboration with leading hospitals of Vietnam.

The Xuyen A General Hospital system is operating four hospitals with over total 1,000 beds, in HCMC and neighboring provinces of Long An, Tay Ninh, and Vinh Long. Xuyen A is deploying two hospital projects in the Central Highlands province of Dak Nong.

Warburg Pincus entered Vietnam in 2013 and is one of the leading investment funds in Vietnam, with total investment of over $2 billion. Warburg Pincus has invested in many Vietnamese businesses, including Techcombank, Vincom Retail, Novaland, and MoMo.

Vietnam has recently witnessed many large foreign investments in the medical and pharmaceutical industry. 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, processed in July 2023. 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.

In October 2023, HCMC-headquartered American International Hospital (AIH) unveiled a comprehensive strategic partnership agreement with Raffles Medical Group (RMG) of Singaporean billionaire Loo Choon Yong. Under the deal, RMG would engage in the governance and operation of AIH and develop a number of specialized services such as oncology and general surgery.

In August 2023, 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.