Since 2010, the Global Law Experts annual awards have been celebrating excellence, innovation and performance across the legal communities from around the world.
posted 9 months ago
In 2023, healthcare was one of the most active sectors in M&A activities, including: investment in medical device manufacturing, pharmaceuticals; drug distribution and healthcare services.
1. Drug manufacturing
An updated report on the pharmaceutical industry by SSI Research shows that healthcare spending has skyrocketed by 25% compared to the previous year and most businesses record growth in both revenue and net profit at a double-digit rate. Typical examples are Hau Giang Pharmaceuticals, Traphaco, Binh Dinh Pharmaceuticals, Imexpharm…
2. Drug distribution
In the distribution segment, retail is facing fierce competition. After a hot growth phase, An Khang stopped opening new ones, Pharmacity restructured its store chain, while Long Chau rose to lead in terms of pharmacy scale.
3. Clinics and hospitals
Previously, M&A activities in the healthcare sector mainly revolved around the transfer of private hospitals and clinics. This trend is expected to continue thanks to favorable market conditions. The aging population, heightened health awareness, and increased income have created a demand for high-quality healthcare services that are not yet fully met.
In terms of supply, the overload situation at first-line public hospitals in big cities has not been resolved. According to the General Statistics Office, the number of beds per 1,000 people in Vietnam in 2021 only reached 3.1 beds, below the recommendation of the World Health Organization (5 beds/1,000 people).
This imbalance between supply and demand shows the potential for the development of private healthcare systems in Vietnam, supported by government incentive policies, such as Resolution No. 20/NQ-TW (2017) setting a goal for private hospital beds to account for 10% and 15% of the total number of beds by 2025 and 2030. Therefore, private hospitals and clinics will continue to attract investor attention, especially as the number of patients is recovering to pre-pandemic levels; complex medical surgeries and procedures and expensive medical services have been resumed.
Here are some notable trends:
Multidisciplinary hospitals attract the highest interest: The largest deal in the healthcare services sector in recent years is GIC’s investment of more than $203 million in Vinmec in 2020. Other notable deals include VinaCapital’s investment in Thu Cuc Healthcare System in 2020, Quadria Capital’s investment in FV Hospital in 2017, Navis Capital’s investment in Hanoi French Hospital in 2016.
In 2020, VinaCapital’s Vietnam Opportunity Fund (VOF) invested $26.7 million to own 30% of Thu Cuc Medical and Cosmetic JSC – owner of the same-named international general hospital. Thu Cuc chose VinaCapital because it is an investor with long experience in the healthcare sector, favorable for strategic decisions related to this special industry.
Partnership with VinaCapital Investment Fund is expected to accelerate the development of Thu Cuc healthcare system in both breadth and depth, and lay a good foundation for foreign investors to enter the Vietnamese market.
The rapid growth opportunities of emerging industries
posted 2 days ago
posted 2 days ago
posted 3 days ago
posted 4 days ago
posted 4 days ago
posted 4 days ago
posted 4 days ago
No results available
ResetFind the right Legal Expert for your business
Sign up for the latest legal briefings and news within Global Law Experts’ community, as well as a whole host of features, editorial and conference updates direct to your email inbox.
Naturally you can unsubscribe at any time.
Global Law Experts is dedicated to providing exceptional legal services to clients around the world. With a vast network of highly skilled and experienced lawyers, we are committed to delivering innovative and tailored solutions to meet the diverse needs of our clients in various jurisdictions.