Vietnam’s Healthcare Boom: Why Global Investors Are Scrambling for a Piece of the Action
Vneconomy
In the heart of Southeast Asia, a quiet revolution is reshaping one of the region’s most promising markets. Vietnam, once known primarily for its textile exports and manufacturing muscle, is fast becoming the new darling of global healthcare investors.
 
Vietnam’s booming middle class is another driving force for healthare.
With projections showing healthcare spending will nearly double from US$18.5 billion in 2022 to US$33.8 billion by 2030, Vietnam is emerging as a vibrant hub for healthcare innovation, investment, and expansion. Driving this transformation? A confluence of demographic shifts, rising incomes, policy reforms—and a population more health-conscious than ever.

A Market on the Rise

Just a few years ago, healthcare in Vietnam was a system under pressure—overcrowded public hospitals, long queues, and an overburdened infrastructure. Fast-forward to today, and the landscape looks dramatically different.

Tran Quoc Bao, CEO of Prima Saigon Medical Center (PMSG)—a premium healthcare provider under the Hoan My Medical Corporation umbrella—has been at the center of this transformation. With over 15 years of experience in healthcare investment and administration, Bao has orchestrated a dozen M&amp;A deals across the sector.

“The pandemic shifted mindsets,” he says. “People became more health-aware and willing to invest in better care. That change has unleashed a wave of demand that the public system alone can’t meet.”
The Vietnamese government has responded by modernizing infrastructure and promoting private sector participation. In Ho Chi Minh City alone, an ambitious VND33,600 billion (US$1.29 billion) plan is underway to expand hospital capacity, upgrade medical equipment, and create specialty treatment centers—largely driven through public-private partnerships and foreign direct investment.

A Golden Opportunity for Investors

Investors have taken notice. Since 2022, the market has seen an influx of high-profile foreign investment deals:

•	Singapore’s Thomson Medical Group acquired FV Hospital, one of the country’s top private hospitals.
•	Global PE giant CVC Capital took over Phuong Chau International Hospital.
•	Raffles Medical Group entered Vietnam through its acquisition of American International Hospital.
•	Warburg Pincus snapped up Xuyen A Hospital Chain, while KKR became the majority shareholder in Medical Saigon Group.
•	Singapore’s GIC recently injected US$135 million into Nhi Dong 315, a leading pediatric and maternity care provider.
•	Creador, a Malaysian private equity firm, bought a 13% stake in pharmacy chain Long Chau, which now boasts over 2,000 outlets across Vietnam.

“The foreign capital pouring in signals confidence—not just in healthcare, but in Vietnam’s long-term economic trajectory,” says Bao. “But there’s still a lot of white space. Primary care is still underdeveloped. Many patients go straight to tertiary hospitals for ailments that should be managed at the primary level. That’s a bottleneck—and an opportunity.”

Rising Demand, Shifting Expectations

Vietnam’s booming middle class is another pillar of growth. Per capita income has surged from US$2,000 in 2013 to over US$4,300 in 2023. By 2026, the middle class is projected to make up 26% of the population—double that of 2023.
This shift is changing expectations. Urban patients increasingly seek private care for shorter wait times, better amenities, and higher-quality service. Public hospitals operate at near-saturation levels, while private hospitals like PMSG report bed utilization rates between 50% to 60%—with ample room to grow.

“Premium patients now expect more than just medical care. They want concierge services, VIP access, fast check-ins—things that make healthcare feel personal and hassle-free,” Bao explains. At Prima Saigon, such services are now embedded into partnerships with banks and insurance companies as part of tailored wealth management offerings.

The Future: Specialization and Medical Tourism

As the sector matures, the era of general hospitals may be ending. Bao sees the next wave of growth coming from specialized centers of excellence—facilities focused on specific clinical areas like oncology, cardiology, fertility, and diabetic care.
“This is where private players will need to differentiate,” he says. “We’re seeing investors back operators who can specialize, scale, and deliver measurable outcomes. Private equity is fast-moving, so execution matters more than ever.”

Vietnam also holds untapped potential in medical tourism. The country already attracts around 300,000 medical tourists annually, generating US$2 billion in revenue. With affordable yet quality care, Vietnam is well-positioned to become a regional hub.

“There’s a whole segment of overseas Vietnamese who return home for Tet and summer holidays,” Bao says. “They’re ideal candidates for bundled health check-ups or elective procedures while they’re here.”

The Bottom Line

Vietnam’s healthcare transformation isn’t just a story of better hospitals or more foreign capital—it’s the story of a country rapidly redefining what healthcare means for its people.
For investors, the message is clear: Vietnam isn’t a frontier market anymore. It’s a growth engine—primed, ready, and wide open for business.


Vietnam’s Healthcare Boom: Why Global Investors Are Scrambling for a Piece of the Action
Vneconomy
In the heart of Southeast Asia, a quiet revolution is reshaping one of the region’s most promising markets. Vietnam, once known primarily for its textile exports and manufacturing muscle, is fast becoming the new darling of global healthcare investors.
 
Vietnam’s booming middle class is another driving force for healthare.
With projections showing healthcare spending will nearly double from US$18.5 billion in 2022 to US$33.8 billion by 2030, Vietnam is emerging as a vibrant hub for healthcare innovation, investment, and expansion. Driving this transformation? A confluence of demographic shifts, rising incomes, policy reforms—and a population more health-conscious than ever.

A Market on the Rise

Just a few years ago, healthcare in Vietnam was a system under pressure—overcrowded public hospitals, long queues, and an overburdened infrastructure. Fast-forward to today, and the landscape looks dramatically different.

Tran Quoc Bao, CEO of Prima Saigon Medical Center (PMSG)—a premium healthcare provider under the Hoan My Medical Corporation umbrella—has been at the center of this transformation. With over 15 years of experience in healthcare investment and administration, Bao has orchestrated a dozen M&A deals across the sector.

“The pandemic shifted mindsets,” he says. “People became more health-aware and willing to invest in better care. That change has unleashed a wave of demand that the public system alone can’t meet.”
The Vietnamese government has responded by modernizing infrastructure and promoting private sector participation. In Ho Chi Minh City alone, an ambitious VND33,600 billion (US$1.29 billion) plan is underway to expand hospital capacity, upgrade medical equipment, and create specialty treatment centers—largely driven through public-private partnerships and foreign direct investment.

A Golden Opportunity for Investors

Investors have taken notice. Since 2022, the market has seen an influx of high-profile foreign investment deals:

•	Singapore’s Thomson Medical Group acquired FV Hospital, one of the country’s top private hospitals.
•	Global PE giant CVC Capital took over Phuong Chau International Hospital.
•	Raffles Medical Group entered Vietnam through its acquisition of American International Hospital.
•	Warburg Pincus snapped up Xuyen A Hospital Chain, while KKR became the majority shareholder in Medical Saigon Group.
•	Singapore’s GIC recently injected US$135 million into Nhi Dong 315, a leading pediatric and maternity care provider.
•	Creador, a Malaysian private equity firm, bought a 13% stake in pharmacy chain Long Chau, which now boasts over 2,000 outlets across Vietnam.

“The foreign capital pouring in signals confidence—not just in healthcare, but in Vietnam’s long-term economic trajectory,” says Bao. “But there’s still a lot of white space. Primary care is still underdeveloped. Many patients go straight to tertiary hospitals for ailments that should be managed at the primary level. That’s a bottleneck—and an opportunity.”

Rising Demand, Shifting Expectations

Vietnam’s booming middle class is another pillar of growth. Per capita income has surged from US$2,000 in 2013 to over US$4,300 in 2023. By 2026, the middle class is projected to make up 26% of the population—double that of 2023.
This shift is changing expectations. Urban patients increasingly seek private care for shorter wait times, better amenities, and higher-quality service. Public hospitals operate at near-saturation levels, while private hospitals like PMSG report bed utilization rates between 50% to 60%—with ample room to grow.

“Premium patients now expect more than just medical care. They want concierge services, VIP access, fast check-ins—things that make healthcare feel personal and hassle-free,” Bao explains. At Prima Saigon, such services are now embedded into partnerships with banks and insurance companies as part of tailored wealth management offerings.

The Future: Specialization and Medical Tourism

As the sector matures, the era of general hospitals may be ending. Bao sees the next wave of growth coming from specialized centers of excellence—facilities focused on specific clinical areas like oncology, cardiology, fertility, and diabetic care.
“This is where private players will need to differentiate,” he says. “We’re seeing investors back operators who can specialize, scale, and deliver measurable outcomes. Private equity is fast-moving, so execution matters more than ever.”

Vietnam also holds untapped potential in medical tourism. The country already attracts around 300,000 medical tourists annually, generating US$2 billion in revenue. With affordable yet quality care, Vietnam is well-positioned to become a regional hub.

“There’s a whole segment of overseas Vietnamese who return home for Tet and summer holidays,” Bao says. “They’re ideal candidates for bundled health check-ups or elective procedures while they’re here.”

The Bottom Line

Vietnam’s healthcare transformation isn’t just a story of better hospitals or more foreign capital—it’s the story of a country rapidly redefining what healthcare means for its people.
For investors, the message is clear: Vietnam isn’t a frontier market anymore. It’s a growth engine—primed, ready, and wide open for business.
