Vietnam’s Healthcare Gold Rush: Why Global Investors Are Betting Big on Southeast Asia’s Rising Star, said Dr Tran Quoc Bao

By Bloomberg Asia Health &amp; Markets Desk

In the heart of Southeast Asia, Vietnam is undergoing a quiet but profound healthcare revolution—one that’s rapidly reshaping it into one of the most attractive investment destinations in the region. Once better known for its manufacturing prowess and low-cost exports, Vietnam is now commanding the attention of global private equity firms, medical conglomerates, and institutional investors, all eager to claim a stake in the country’s booming healthcare sector.

A Sector in Transition
The country’s healthcare spending is set to nearly double from $18.5 billion in 2022 to $33.8 billion by 2030, driven by a fast-growing middle class, rising incomes, improved infrastructure, and policy reforms that are opening the door to foreign capital.

“The pandemic was a catalyst,” says Tran Quoc Bao, CEO of Prima Saigon Medical Center (PMSG) and a veteran healthcare investor in Vietnam. “It changed public perception of healthcare—from a public service to a personal investment. That shift is creating a demand surge the public system can’t absorb alone.”

From Overcrowding to Opportunity
Just a decade ago, Vietnam’s healthcare system was under immense strain—public hospitals were overcrowded, infrastructure was aging, and private sector involvement was limited. Fast forward to 2025, and the situation is radically different.

In Ho Chi Minh City, the government is rolling out an ambitious $1.29 billion healthcare development plan, funded largely through public-private partnerships. The initiative will expand hospital capacity, upgrade equipment, and build specialized treatment centers—creating a fertile environment for foreign direct investment.

Global Capital Moves In
Since 2022, the investment landscape has heated up dramatically, with major cross-border transactions making headlines:

Thomson Medical Group (Singapore) acquired FV Hospital, a top-tier private facility.

CVC Capital Partners took control of Phuong Chau International Hospital.

Raffles Medical Group entered the market through its acquisition of American International Hospital.

Warburg Pincus acquired the Xuyen A Hospital Chain, while KKR took a majority stake in Medical Saigon Group.

GIC (Singapore’s sovereign fund) invested $135 million into pediatric and maternity care provider Nhi Dong 315.

Creador, a Malaysia-based PE firm, secured a 13% stake in the fast-growing Long Chau pharmacy chain, which now operates over 2,000 outlets.

“This isn’t speculative money—it’s strategic,” Bao notes. “Vietnam is now on the radar of every serious healthcare investor in Asia.”

Middle Class Surge, Market Recalibration
Vietnam’s middle class has more than doubled in a decade, with per capita income rising from $2,000 in 2013 to over $4,300 in 2023. By 2026, the middle class is expected to represent 26% of the population—an economic shift that is redefining how healthcare is consumed.

Urban patients, especially in Hanoi and Ho Chi Minh City, increasingly seek private care for shorter wait times, better amenities, and a higher standard of service. While public hospitals are operating at near full capacity, private operators like PMSG report bed utilization rates of just 50–60%, with substantial room for growth.

Bao says the new generation of patients is not just health-conscious but experience-conscious. “Healthcare is becoming part of lifestyle and wealth management. Patients want VIP services, fast check-ins, concierge-style care. We’re seeing bundled offerings with insurance and banks—it’s healthcare, but also hospitality.”

The Next Chapter: Specialization and Tourism
As competition intensifies, the general hospital model is giving way to specialized centers of excellence. Bao sees strong demand in oncology, fertility, cardiology, and diabetic care—areas where private players can differentiate through focus and scale.

“Private equity is rewarding specialization,” he says. “The next phase will be dominated by players who can deliver targeted, outcome-driven care at scale. Execution is everything.”

Medical tourism is another underexploited frontier. With around 300,000 medical tourists annually and $2 billion in revenues, Vietnam is beginning to compete with Thailand and Malaysia as a destination for elective procedures and diagnostics—particularly among overseas Vietnamese returning home during holidays.

“There’s untapped value in seasonal demand,” Bao says. “Vietnamese expats are ideal for bundled services—comprehensive health check-ups and elective treatments while visiting family.”

Bottom Line: A Market No Longer Emerging—But Arrived
Vietnam’s healthcare evolution is not just about shiny new hospitals or inflows of capital. It’s a signal that Vietnam has outgrown its ‘frontier market’ label, at least in healthcare.

It’s now a full-fledged growth market—one with scale, rising domestic demand, policy tailwinds, and the confidence of global institutional investors. For fund managers, strategics, and family offices, the message is clear:

Vietnam is no longer the next big thing. It’s the big thing now.


Vietnam’s Healthcare Gold Rush: Why Global Investors Are Betting Big on Southeast Asia’s Rising Star, said Dr Tran Quoc Bao

By Bloomberg Asia Health & Markets Desk

In the heart of Southeast Asia, Vietnam is undergoing a quiet but profound healthcare revolution—one that’s rapidly reshaping it into one of the most attractive investment destinations in the region. Once better known for its manufacturing prowess and low-cost exports, Vietnam is now commanding the attention of global private equity firms, medical conglomerates, and institutional investors, all eager to claim a stake in the country’s booming healthcare sector.

A Sector in Transition
The country’s healthcare spending is set to nearly double from $18.5 billion in 2022 to $33.8 billion by 2030, driven by a fast-growing middle class, rising incomes, improved infrastructure, and policy reforms that are opening the door to foreign capital.

“The pandemic was a catalyst,” says Tran Quoc Bao, CEO of Prima Saigon Medical Center (PMSG) and a veteran healthcare investor in Vietnam. “It changed public perception of healthcare—from a public service to a personal investment. That shift is creating a demand surge the public system can’t absorb alone.”

From Overcrowding to Opportunity
Just a decade ago, Vietnam’s healthcare system was under immense strain—public hospitals were overcrowded, infrastructure was aging, and private sector involvement was limited. Fast forward to 2025, and the situation is radically different.

In Ho Chi Minh City, the government is rolling out an ambitious $1.29 billion healthcare development plan, funded largely through public-private partnerships. The initiative will expand hospital capacity, upgrade equipment, and build specialized treatment centers—creating a fertile environment for foreign direct investment.

Global Capital Moves In
Since 2022, the investment landscape has heated up dramatically, with major cross-border transactions making headlines:

Thomson Medical Group (Singapore) acquired FV Hospital, a top-tier private facility.

CVC Capital Partners took control of Phuong Chau International Hospital.

Raffles Medical Group entered the market through its acquisition of American International Hospital.

Warburg Pincus acquired the Xuyen A Hospital Chain, while KKR took a majority stake in Medical Saigon Group.

GIC (Singapore’s sovereign fund) invested $135 million into pediatric and maternity care provider Nhi Dong 315.

Creador, a Malaysia-based PE firm, secured a 13% stake in the fast-growing Long Chau pharmacy chain, which now operates over 2,000 outlets.

“This isn’t speculative money—it’s strategic,” Bao notes. “Vietnam is now on the radar of every serious healthcare investor in Asia.”

Middle Class Surge, Market Recalibration
Vietnam’s middle class has more than doubled in a decade, with per capita income rising from $2,000 in 2013 to over $4,300 in 2023. By 2026, the middle class is expected to represent 26% of the population—an economic shift that is redefining how healthcare is consumed.

Urban patients, especially in Hanoi and Ho Chi Minh City, increasingly seek private care for shorter wait times, better amenities, and a higher standard of service. While public hospitals are operating at near full capacity, private operators like PMSG report bed utilization rates of just 50–60%, with substantial room for growth.

Bao says the new generation of patients is not just health-conscious but experience-conscious. “Healthcare is becoming part of lifestyle and wealth management. Patients want VIP services, fast check-ins, concierge-style care. We’re seeing bundled offerings with insurance and banks—it’s healthcare, but also hospitality.”

The Next Chapter: Specialization and Tourism
As competition intensifies, the general hospital model is giving way to specialized centers of excellence. Bao sees strong demand in oncology, fertility, cardiology, and diabetic care—areas where private players can differentiate through focus and scale.

“Private equity is rewarding specialization,” he says. “The next phase will be dominated by players who can deliver targeted, outcome-driven care at scale. Execution is everything.”

Medical tourism is another underexploited frontier. With around 300,000 medical tourists annually and $2 billion in revenues, Vietnam is beginning to compete with Thailand and Malaysia as a destination for elective procedures and diagnostics—particularly among overseas Vietnamese returning home during holidays.

“There’s untapped value in seasonal demand,” Bao says. “Vietnamese expats are ideal for bundled services—comprehensive health check-ups and elective treatments while visiting family.”

Bottom Line: A Market No Longer Emerging—But Arrived
Vietnam’s healthcare evolution is not just about shiny new hospitals or inflows of capital. It’s a signal that Vietnam has outgrown its ‘frontier market’ label, at least in healthcare.

It’s now a full-fledged growth market—one with scale, rising domestic demand, policy tailwinds, and the confidence of global institutional investors. For fund managers, strategics, and family offices, the message is clear:

Vietnam is no longer the next big thing. It’s the big thing now.
