Vietnam’s Healthcare Revolution: Why Investors And Medical Tourists Are Betting Big On This Southeast Asian Powerhouse

Vietnam’s healthcare sector is undergoing a transformation of historic proportions—one that’s catching the attention of both international patients and global investors.

Once overshadowed by regional neighbors like Thailand and Singapore, Vietnam is now one of Asia’s fastest-emerging medical tourism and healthcare investment frontiers, with medical tourism revenues nearing US$2 billion annually and healthcare expenditures set to double from US$18.5 billion in 2022 to US$33.8 billion by 2030.
Medical Tourism’s Rising Star

A 12% average annual growth in health and wellness-related tourism from 2017 to 2024 underscores the sector’s momentum. At the heart of this growth story is a compelling combination of cost-effective, high-quality care and proximity to major regional markets such as South Korea, Japan, and China.

One standout player redefining Vietnam’s medical tourism proposition is Vinmec Health System, a non-profit hospital group under Vietnamese conglomerate Vingroup. With nine hospitals and four general clinics across the country, Vinmec was the first in Vietnam to achieve JCI accreditation—the global benchmark for healthcare safety and quality.

Vinmec has already treated over 500,000 foreign patients from more than 200 countries, including returning overseas Vietnamese—an increasingly targeted segment of the diaspora. Treatments in high demand include cosmetic dentistry, fertility treatment (IVF), and integrative traditional medicine, delivered in tranquil settings with state-of-the-art diagnostic capabilities.

“2024 saw an unprecedented surge in international patient volumes,” the group stated. “This reflects Vietnam’s rising global reputation and the resilience of our healthcare ecosystem in the post-pandemic era.”
Investment Is Booming

Beyond the patient experience, Vietnam’s healthcare market is becoming a magnet for foreign direct investment (FDI) and private equity capital.

According to Tran Quoc Bao, CEO of Prima Saigon Medical Center (PMSG) ,—a leading international hospital in Ho Chi Minh City— and also a prominent investment banker, the growth is driven by a confluence of factors: “A rising middle class, greater health awareness, and proactive government reforms are reshaping healthcare delivery and opening up attractive opportunities for investors.”

The data supports his claim. Vietnam’s middle class is projected to double from 13% of the population in 2023 to 26% by 2026, and its elderly population (aged 60 and over) is expected to reach 25% by 2050, significantly boosting demand for chronic and specialized care.
Global investors are taking notice. Recent deals include:
•	Singapore-based Thomson Medical Group acquiring FV Hospital
•	Raffles Medical acquiring American International Hospital
•	Warburg Pincus backing Xuyen A Hospital Chain
•	KKR becoming majority shareholder in Medical Saigon Group (MSG)
•	Singapore’s GIC injecting $135 million into pediatric chain Nhi Dong 315
•	Malaysia’s Creador acquiring 13% of pharmacy giant Long Chau
“Healthcare is now seen not just as a public good, but a long-term investment class,” Bao explains. “But success requires specialization and operational excellence.”
From Generalists to Centers of Excellence
As competition among private providers intensifies—384 of Vietnam’s 1,645 hospitals are now privately owned—differentiation is becoming critical.
For Bao’s PMSG, that means focusing on centers of excellence in areas like women’s health, ophthalmology, diabetes, and preventive care. Other premium players are building strategic partnerships to raise their clinical and branding profile.
Vinmec, for instance, has formed a strategic alliance with Cleveland Clinic, one of the world’s most prestigious healthcare systems. Its Times City and Central Park branches are part of the Cleveland Clinic Connected network, facilitating advanced treatment protocols, clinician training, and international referrals.
The two are also jointly developing Vinmec Can Gio Hospital, a flagship facility in Ho Chi Minh City that aims to blend clinical treatment, wellness tourism, and holistic rehabilitation into one integrated ecosystem.
“This is more than a hospital,” Vinmec notes. “It’s a blueprint for how healthcare can evolve into a holistic experience—and how Vietnam can stand out on the global stage.”
Government Reform, Private Innovation
Vietnam’s public hospitals remain overstretched, with many operating above capacity. In contrast, private hospitals see 50–60% utilization, offering faster service, more comfort, and customized care—key factors for international patients.
To meet rising demand and improve system efficiency, the Vietnamese government is encouraging public-private partnerships (PPPs) and foreign capital inflows. Ho Chi Minh City alone has mobilized over USD 1.29 billion for healthcare infrastructure upgrades, specialty facilities, and new hospital development.
Meanwhile, administrative restructuring at the provincial level aims to consolidate services and reduce inefficiencies—a key step toward a more streamlined, investor-friendly environment.
Yet challenges remain. “Primary care is underdeveloped,” says Bao. “Too many patients go straight to tertiary hospitals. That’s an opportunity for investors to build scalable, community-level care.”
What’s Next: Wellness, Integration, and Digitalization
Vietnam’s value proposition is evolving. From affordable procedures and modern infrastructure to natural healing environments—think hot springs, mud baths, and herbal therapies—the country is uniquely positioned for the next wave of holistic, integrative medical tourism.
Forward-looking providers like Vinmec are already adapting to this trend, emphasizing patient empathy, continuity of care, and culturally rooted wellness offerings.
As more international investors enter the market, expect a shift toward specialized institutions, international partnerships, and experience-driven models of care.
Vietnam is no longer just catching up. With the right reforms, partnerships, and innovations, it could soon leap ahead—as Southeast Asia’s next medical and wellness powerhouse.
