With strong growth potential, Vietnam’s healthcare industry offers promising opportunities for foreign investors and businesses looking to expand their presence in Southeast Asia. However, to achieve success and ensure sustainability in this field, understanding and complying with legal regulations is a prerequisite.
The importance of legal compliance in healthcare investment
Investing in hospitals and clinics brings immense potential but also comes with significant legal challenges. To ensure success, investors must understand and adhere to all relevant legal provisions, from establishing and constructing facilities to operational management.
As a highly regulated sector, healthcare demands strict legal compliance. For investors looking to establish or operate hospitals and clinics, understanding and following these regulations is crucial to mitigate risks and maintain long-term operations.
Compliance with legal requirements and the implementation of investment strategies not only optimize profitability but also contribute to the development of the healthcare system.
Legal notes for hospital and clinic investors
Legal requirements for hospital and clinic establishment
To operate a hospital or clinic, investors must meet the following conditions:
- Legal entity type: Hospitals and clinics must be registered as companies or organizations with legal person status.
- Operating license: An operating license for medical examination and treatment must be granted by the Ministry of Health or the Department of Health, depending on the scale and scope of operations.
- Facilities: The facility must meet legal standards regarding space, medical equipment, and hygiene requirements.
Human resource requirements
Hospitals and clinics can only operate if they meet staffing standards as follows:
- Professional certifications: Doctors, nurses, and medical staff must possess medical practice certificates.
- Minimum staff numbers: Ensure adequate staffing levels appropriate to the scale of operations, particularly experienced doctors in charge of specialized areas.
Regulations on investment capital
Investors must pay attention to the minimum capital requirements for establishing hospitals or clinics:
- Hospitals: The minimum capital often depends on the number of beds, facilities, and medical equipment.
- Clinics: While requiring less capital, clinics still need sufficient investment in equipment for effective medical services.
Regulations on construction and operation permits
- Construction permit: Before building a hospital or clinic, investors must obtain a construction permit from the relevant authorities.
- Operational permit: Upon completion, facilities must undergo inspection and approval of equipment and infrastructure to receive an operational permit.
Environmental compliance
Hospitals and clinics must have a proper medical waste management system in place, meeting environmental protection and public health safety standards.
Key legal challenges in hospital and clinic investments
Complicated licensing procedures
To obtain licenses for establishment and other related documentation, investors have to prepare comprehensive applications and undergo evaluations and approvals from multiple agencies. This can result in time and resource costs, potentially delaying project implementation.
Changes in legal regulations
Vietnam’s legal framework for healthcare is undergoing continuous updates to meet management and industry development needs. Investors must stay proactive in monitoring these changes to ensure compliance with current laws and avoid unnecessary legal risks.
Service quality control
To maintain stable operations and build reputation, healthcare facilities must meet quality standards issued by the Ministry of Health. This demands serious investment in infrastructure, equipment, and highly qualified personnel, as well as the development of professional and efficient operational management processes. Regular quality inspections can also pose a challenge if not adequately prepared.
MEDi Deals – A solution for healthcare investors
MEDi Deals is the leading cross-border M&A/capital raising advisory firm with experience in closing successful deals, extensive health-tech competence as well as in-depth technological expertise. We act as an intermediary between ASEAN medical facilities, healthcare related companies and Japanese medical institutions to strengthen corporate partnerships, identify synergies, drive growth and reshape business landscapes through strategic combinations.
Whether you enter into new markets or pursue scale, new technology, we offer effective solutions to achieve strategic objectives through mergers and acquisitions (M&A).
Embracing the future of M&A, we vow to keep striving to develop into a healthcare bridge between ASEAN countries and contribute to making healthcare accessible on a global scale. Contact MEDi Deals to get the deal over the line!