Vietnamese spend US$2bn on treatment abroad

 

According to Vietnamnet, foreign investors are putting high hopes on the Vietnamese healthcare sector. The market has seen foreign investors pour trillions of Vietnamese dong in merger and acquisition deals in the country’s healthcare sector this year. Notably, South Korea’s Sun Medical Center acquired Nha Khoa My, an international network of dental clinics which has been operating in Vietnam for 15 years.  Also earlier this year Polish Adamed Group spent US$50 million to acquire 70% of Davipharm shares. This is the biggest Polish investment affair in Vietnam so far, made in anticipation of the Vietnam-Europe Free Trade Agreement, expected to be signed this year.

Managing Director and Chief Investment Officer of VinaCapital Andy Ho said that it is estimated that Vietnamese people annually spend over US$2 billion for medical treatment overseas, a clear evidence of the enormous opportunity for quality domestic healthcare services.

The outlook for foreign investors in the healthcare sector is positive as Vietnam’s population is ageing quickly, with 10 percent at or above the age of 60 in 2017 – in 15-20 years, the elderly will account for one-third of the total population. Rapid urbanisation is also stimulating demand for quality healthcare within Vietnam while overcrowding in government hospitals is expected to intensify, resulting in long wait time and a shortage of beds.

Business Monitor International (BMI) reported that Vietnam's healthcare expenditure was estimated at US$16.1 billion in 2017, which represented 7.5% of the country's GDP. BMI forecasts that healthcare spending will grow to US$22.7 billion in 2021, recording a compound annual growth rate (CAGR) of approximately 12.5% from 2017 to 2021.

For up to date analysis of medical tourism in and out of Vietnam, visit the IMTJ Country profile.

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