Vietnam’s healthcare industry is witnessing a sharp increase in merger and acquisition (M&A) activities. Below are 4 potential areas to attract M&A in the healthcare industry in 2024:
Hospitals and clinics
The healthcare industry is witnessing a strong concentration trend as large medical corporations acquire small clinics and hospitals to strengthen their competitive position and expand their service provision network.
Small and medium-sized clinics and hospitals often face many difficulties in accessing capital, modern medical equipment, and high-quality human resources. When cooperating and merging with large medical corporations, clinics and hospitals will improve service quality and expand business activities.
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Medical technology
The outstanding development of artificial intelligence technology, medical robots… opens up many new opportunities for M&A in the healthcare industry. Smart medical solutions help personalize disease diagnosis and treatment, improve operational efficiency, improve service quality and reduce treatment costs. Companies possessing advanced medical technology will have a great competitive advantage in the market and become attractive targets for investors.
Pharmaceuticals
M&A activities play an important role in helping pharmaceutical companies access advanced production technology, good research teams and investment capital to develop and supplement new product portfolios. From there, ensuring a stable supply of raw materials and finished drugs, strengthening the pharmaceutical supply chain.
Medical equipment
According to the Ministry of Health, there are still few domestic medical equipment manufacturers that meet international standards, while more than 90% of medical equipment in Vietnam is imported. Medical device companies are looking for opportunities to expand their business, introduce new products, and reach new markets through acquisitions of other medical device companies, product licensing, or partnerships distribution.
With the above outstanding trends, the M&A market in Vietnam’s healthcare industry is a “fertile land”, offering many opportunities for development cooperation through mergers and acquisitions. However, investors and businesses need to grasp market trends and carefully evaluate risk factors before participating in M&A activities.