Portfolio overhauls illustrate Vietnam’s potential

Portfolio overhauls illustrate Vietnam’s potential

Vietnam’s healthcare and pharmaceutical market has become heated as investors step up the restructuring of their investment portfolios.

Two weeks ago, Vietnam Opportunity Fund (VOF), the London-listed closed-end fund managed by VinaCapital, exited hospital chain Tam Tri Medical, selling to a dedicated healthcare private equity firm based in South and Southeast Asia.

Khanh Vu, lead portfolio manager of VOF, said, “We sold our stake at a premium to one of the region’s foremost healthcare investors who understand the market and its enormous potential. This exit is possible, despite difficulties in global macro conditions and the private equity deal landscape.”

VOF invested $28 million in Tam Tri Medical in 2018 as a private equity investment, when the healthcare group operated four hospitals with approximately 400 beds. Over the past six years, the fund has injected additional capital into Tam Tri Medical to facilitate the acquisition of three additional hospitals and the development of a flagship greenfield hospital. Today, the platform serves over one million patient visits and 20,000 surgical cases annually.

In May, Chinese giant Livzon Pharmaceutical Group unveiled its plan to acquire 64.81 per cent of Imexpharm in a deal worth $220 million. The transaction is being conducted by Livzon’s Singapore-based subsidiary, Lian SGP Holding.

Livzon will purchase the shares from SK Investment Vina III under SK Group, Sunrise Kim Investment, and KBA Investment.

After the transaction, Livzon becomes the largest shareholder, holding a controlling stake in Imexpharm. The acquisition will be a launchpad for Livzon’s further expansion into overseas markets, supporting its long-term strategy of internationalisation and sustainable development in the pharmaceutical sector.

In April, Malaysia-headquartered private equity firm Creador also acquired a minority interest in FPT Long Chau Investment. The deal with Long Chau marks Creador’s second investment in Vietnam, following Mobile World Investment.

Brahmal Vasudevan, founder and chief executive of Creador, said, “Vietnam offers the rare combination of sheer scale and clear whitespace. With a population three times larger than Malaysia and seventeen times more than Singapore, Vietnam is experiencing both a growing ageing population and a rapidly expanding middle class, driving rising demand for high-quality healthcare services.”

With Long Chau, consumers gain access to consistent supply, breadth of SKUs, competitive pricing, and personalised care all in one shop – an integrated offering that fragmented, traditional general trade pharmacies simply cannot match. It is exactly the sort of category-defining platform Creador looks to back, Vasudevan said – an organisation serving a large unmet need, with a defined customer proposition, and the potential to formalise a critical supply chain and infrastructure across the country.

In addition, French pharmaceutical and consumer healthcare group Mayoly is advancing its plan to penetrate the Vietnamese market. In March, Mayoly inaugurated its new representative office in Ho Chi Minh City – a key milestone that confirms the company’s long-term commitment, growing investment, and confidence in the country’s development potential. This new base will help Mayoly work more closely with local stakeholders and strengthen its presence in the region.

Mehdi Meftah, general manager of Mayoly in Asia-Pacific, said that Vietnam is a strategic market for Mayoly, with strong growth potential. With its rapidly modernising healthcare system, the energy of its medical professionals, and growing patient trust, Vietnam offers an environment that fosters innovation, collaboration, and broader access to care.

“Our ambition is to become a leader in consumer healthcare in Vietnam, expand our footprint by reinforcing local partnerships, broadening our portfolio in gastroenterology with digestive health and probiotic solutions, and mental performance, as well as investing in a sustainable, patient-centred pharmaceutical approach,” said Meftah.

According to a report by Roland Berger Vietnam, Vietnam’s healthcare market size is estimated to reach $23.7 billion and grow at an average rate of 7.5 per cent annually from 2023 to 2028.

Vietnam’s healthcare sector is becoming increasingly attractive to financial and strategic investors, thanks to proactive government initiatives in streamlining regulations and encouraging policies that welcome private sector participation and enhance transparency and efficiency in the sector.

Vasudevan from Creador pointed out distinct trends shaping the next wave of private healthcare investments in Vietnam, including the rapid upgrade and formalisation of healthcare infrastructure.

“Recent private investments highlight a clear shift towards building world-class medical facilities in Vietnam,” he said. “These investments are strategically positioned to capture the growing middle-class demand for quality care and further absorb the $2 billion annually spent by Vietnamese patients seeking treatment abroad.”

VIR