The medical and health care sector is one of the industries with the most vibrant M&A activities in terms of both quantity and transaction value, with 11 deals taking place with a total announced value of 508 million USD in the past year. 2023.
Below are 4 potential factors driving mergers and acquisitions in Vietnam’s healthcare sector:
Supportive policies
The Vietnamese government is issuing many policies to support the development of the health sector, including encouraging private investment, promoting technology application, and expanding health insurance. These policies help simplify administrative procedures, creating favorable conditions for foreign investors to participate in the Vietnamese medical market.
Population restructuring
Vietnam’s population is entering the aging phase and is among the fastest aging countries in the world. Besides, according to Statista’s report, the middle class that is forming in Vietnam currently accounts for 13% of the population, and is expected to account for 26% by 2026. This population restructuring has helped boost the demand for high-quality health care services, thereby creating a solid foundation for investments in the health sector.
The need for high-quality health care in Vietnam is huge, but still not fully met
Overcrowding in public hospitals and big cities is an urgent problem for the health system. Vietnam. Meanwhile, Vietnamese people have increasingly better economic conditions and are willing to pay more for high-quality medical services. This motivates medical businesses to improve service quality, invest in modern medical equipment, attract high-quality human resources, thereby promoting M&A activities.
Health awareness is gradually increasing
Since the COVID-19 pandemic, people have increasingly tended to increase spending to improve health quality. According to Euromonitor research, Vietnamese people’s annual per capita spending on medical goods and services increased from 90 USD in 2017 to 141 USD in 2022. This trend contributes to boosting demand for medical products. quality healthcare products and services, making the healthcare sector more attractive from an investment perspective.
Amidst the backdrop of globalization and economic fluctuations, Vietnam’s M&A market stands out as a shining beacon in both the regional and global economy. Vietnam’s healthcare industry is predicted to continue to be a hot spot attracting mergers and acquisitions (M&A) activities in the coming time, contributing to improving the quality of medical services and meeting today’s healthcare needs. the higher of the people.