Vietnam Healthcare Reforms Drive Private Investment

Vietnam's healthcare reforms, aging population, and private investment surge are creating significant opportunities in hospitals, eldercare, digital health, and medical technology. (Photo Courtesy of Unsplash)

Vietnam's healthcare sector is entering a new phase of expansion as government reforms, demographic change, and rising demand reshape one of Southeast Asia's fastest-growing healthcare markets. Facing overcrowded public hospitals, a rapidly aging population, and growing consumer expectations, the government is accelerating policies to attract private investment across hospitals, eldercare, medical technology, and healthcare infrastructure.

Market analysts project Vietnam's private healthcare sector to grow at a compound annual growth rate (CAGR) of 7.5% through 2030, supported by a series of regulatory reforms and increasing institutional investment.

Government Reforms Drive Private Healthcare Expansion

The transformation is largely driven by the government's long-term healthcare development strategy.

Approved in February 2024, Decision No. 201/QD-TTg, the National Health System Master Plan, aims to ease pressure on public hospitals, which currently treat around 60% of patients and often operate at twice their intended capacity. The plan encourages greater private sector participation, targeting private hospital beds to account for at least 15% of national capacity by 2030, rising to 25% by 2050.

Meanwhile, Resolution 72 signals a shift from a treatment-focused healthcare system toward preventive medicine and primary care. Complementing this strategy, the Law on Medical Examination and Treatment No. 15/2023/QH15 modernizes licensing procedures while introducing stricter standards for healthcare facilities and professional qualifications, providing investors with a more transparent regulatory framework.

Aging Population Spurs Demand for Geriatric Care

Vietnam is also experiencing one of the world's fastest demographic transitions. People aged 60 and above are expected to represent more than 25% of the population by 2050, with the country projected to become an "aged society" by 2036.

To prepare for this shift, the government introduced Decision No. 1116/QD-TTg in June 2026, significantly expanding requirements for elderly healthcare services.

By 2030, every province and centrally governed city must establish either a dedicated geriatric hospital or a geriatric department within a general hospital. The policy also calls for pilot day-care centers for older adults in 20% of localities and elderly care clubs in 90% of communes.

In addition, the government aims for 90% of older adults to receive health records and ongoing screening and management for chronic diseases such as cancer, dementia, cardiovascular disease, and other non-communicable illnesses. Since 2026, senior citizens have also become eligible for at least one free annual health screening.

These measures are expected to create strong demand for private geriatric hospitals, rehabilitation facilities, long-term care services, and community-based senior care models, sectors that remain significantly undersupplied.

High-Growth Opportunities Across Healthcare

The widening gap between healthcare demand and supply is opening multiple opportunities for foreign investors.

One of the largest opportunities lies in reducing outbound medical travel. Vietnamese patients are estimated to spend around US$2 billion annually seeking treatment overseas, particularly in Singapore and Thailand, reflecting unmet domestic demand for advanced specialties such as oncology, cardiology, and complex diagnostics.

Vietnam is also strengthening its position as a regional medical tourism destination thanks to competitive treatment costs. For example, heart bypass surgery typically costs US$10,000–15,000 in Vietnam, compared with US$25,000–30,000 in Thailand.

Digital healthcare is another priority. The government is promoting the development of smart hospitals, creating demand for Hospital Information Systems (HIS), Electronic Health Records (EHRs), and other digital health solutions. International technology companies, including NTT Data and SK Telecom, have already begun exploring opportunities in the market.

At the same time, Vietnam remains heavily dependent on imports for medical supplies. More than 90% of medical equipment is sourced overseas, with medical device imports reaching US$1.7 billion in 2024 and pharmaceutical imports totaling US$4.4 billion, highlighting continued opportunities for international suppliers.

Institutional Investors Accelerate Market Entry

Growing confidence in Vietnam's healthcare sector has fueled a wave of mergers, acquisitions, and strategic investments.

Among the largest deals, Thomson Medical Group of Singapore acquired FV Hospital for US$381.4 million in 2024, marking Vietnam's largest healthcare acquisition to date.

US private equity firm Warburg Pincus invested US$100 million in Xuyen A Hospital to support expansion and establish a new oncology center. Singapore's Raffles Medical Group also entered the market by acquiring a controlling stake in American International Hospital, while KKR took control of the Medical Saigon Group. In 2025, a leading Southeast Asian healthcare private equity firm acquired VinaCapital's stake in Tam Tri Medical Joint Stock Company, which serves more than one million patient visits annually.

Domestic healthcare providers are also expanding rapidly. Vinmec Healthcare System, part of Vingroup, now operates nine hospitals and maintains clinical collaborations with the Cleveland Clinic. Hoan My Medical Corporation continues to strengthen its nationwide network, while Tam Anh General Hospital recently partnered with GE HealthCare to accelerate AI-enabled healthcare services.

Outlook

Vietnam's healthcare transformation is gathering momentum as policy reforms, demographic change, and private capital converge to reshape the sector. Government targets for expanding private hospital capacity and strengthening geriatric care provide long-term visibility for investors, while sustained M&A activity demonstrates growing confidence among international healthcare operators and institutional funds.

Although licensing and regulatory procedures remain areas for continued improvement, Vietnam is increasingly emerging as one of Asia's most attractive healthcare investment destinations over the coming decade.

Source: Harley Miller Law Firm, FiinGroup, B&Company, Vietnamnet Global, The Business Times

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