Việt Nam’s pharma sector heats up with major M&A deals

Việt Nam’s pharma sector heats up with major M&A deals

The entry of foreign strategic investors with strong financial capacity and technological advantages has helped Vietnamese pharmaceutical companies significantly enhance their competitiveness and expand export markets.

Production at Medcen pharmaceutical factory in Long An Province. PwC Vietnam forecasts a vibrant M&A market in Việt Nam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. — VNA/VNS Photo Minh Hưng

Vibrant market

PwC’s Global M&A Industry Trends: 2025 Outlook reveals that CEOs around the world are optimistic about mergers and acquisitions (M&A) in 2025. Accordingly, 81 per cent of CEOs who have completed at least one major M&A deal in the past three years, plan to pursue one or more deals in the next three years. Notably, companies in the healthcare and pharmaceutical sectors are actively engaging in M&A to accelerate business model transformation.

PwC Vietnam forecasts a vibrant M&A market in Việt Nam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.

According to Partner and Transaction Services Leader at PwC Vietnam Ong Tiong Hooi, global M&A activity is on a strong recovery path, fueled by improving economic indicators and a surge in strategic deals.

This trend is also evident in Việt Nam, with the rising number of M&A deals across sectors. Domestic enterprises are taking a more proactive role, leading high-value transactions, while foreign investors are showing renewed interest in the market, especially in the promising healthcare and education sectors.

Foreign buyers stepping up acquisitions

Việt Nam’s healthcare and pharmaceutical sectors have recently seen an M&A boom, driven by several big deals. According to Kirin Capital – a long-term fundamental research-driven equity investor in Việt Nam, healthcare was the most active sector for M&A in 2023, with 11 transactions totaling a disclosed value of US$508 million. This made it rank third in M&A, following only the traditional frontrunners of finance and real estate. Most of the acquisitions were made by foreign investors.

Notable transactions included Thomson Medical Group’s acquisition of FV Hospital and Dongwha Pharm’s purchase of a majority stake in the Trung Sơn pharmacy chain.

In March, Mekong Enterprise Fund IV (MEF IV), managed by Mekong Capital, made its first foray into private healthcare by investing in TNH Hospital Group JSC, one of the leading private hospital systems in Việt Nam’s northern midland and mountainous region. Chris Freund, Founder and CEO of Mekong Capital, shared that the firm had spent over a decade searching for investment opportunities in potential hospitals and that TNH was ultimately chosen for its visionary leadership.

TNH has recently attracted significant foreign investment. Singapore-based fund Blooming Earth acquired over 6.72 million TNH shares, raising its ownership to 13.74 per cent. Earlier, Luxembourg-based Access S.A., SICAV-SIF - Asia Top Picks also purchased over 1.6 million TNH shares, increasing its stake to 8.05 per cent.

Binh Dinh Pharmaceutical and Medical Equipment JSC has also seen growing interest from foreign investors. In mid-December 2024, KWE Beteiligungen AG of Swiss purchased an additional 79,500 DBD shares, raising its stake from 9.93 per cent to 10.01 per cent, making it the second-largest shareholder in the Vietnamese firm. The fund is also a major shareholder in TNH, holding a 10.5 per cent stake.

Leading pharmaceutical producers such as Hau Giang Pharma, Domesco, Traphaco, and Pymepharco all have foreign strategic shareholders. Some have even gained controlling stakes of over 51 per cent, with a few completing full acquisitions. 

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