The Surge of M&A in Vietnam’s Healthcare Sector: An In-Depth Look
Leading the wave of mergers and acquisitions (M&A) in 2025 was Livzon Group’s remarkable move to acquire a 64.8% stake in Imexpharm for a staggering $221 million. This acquisition not only provides Livzon with immediate access to Imexpharm’s four EU-GMP certified plants but also secures a foothold in the domestic antibiotics market, where Imexpharm boasts a commanding 10% share. Such a strategic move illustrates the current landscape of Vietnam’s healthcare market, where delivering quality products and access to established infrastructure is becoming increasingly vital.
By Huong Trinh, Partner, and Yen Pham, Vice President, BDA Partners
The Market Reality of Pharmaceutical Acquisitions
The dynamics within Vietnam’s pharmaceutical sector are heavily influenced by strict foreign distribution regulations. As such, acquisitions of established domestic manufacturers represent a pragmatic pathway for foreign entities looking to penetrate this burgeoning market. This strategic rationale is not only about securing local access; it also positions Vietnamese manufacturers as contract manufacturing platforms for exports to ASEAN markets. These manufacturers, equipped with international certifications, stand to benefit from Vietnam’s advantageous free trade agreements, effectively becoming cost-effective production bases.
A Surge in Healthcare Investments
The healthcare services sector has predominantly driven deal activity in Vietnam, attracting both institutional investors and specialized healthcare funds. Two notable investments have captured the attention of market analysts.
First, Ares’s investment in Medlatec marked its inaugural foray into Vietnam’s healthcare scene. Managing over $595 billion in assets, Ares’s entry into the market signals a significant milestone, reflecting the maturation of Vietnam’s healthcare sector and its newfound capability to draw institutional capital.
Second, Quadria Capital’s acquisition of Tam Tri Medical reestablishes its footprint in Vietnam after exiting FV Hospital in 2023. This deal emphasizes the ongoing commitment of specialized healthcare investors to the region, with the seven-hospital platform spread across Ho Chi Minh City, Danang, and Khanh Hoa highlighting the stability and growth potential of multi-location healthcare assets.
Investment Attributes: What Investors Look For
Both Ares and Quadria targeted platforms with proven operational records across multiple locations. This focus on operational excellence allows institutional investors to deploy large sums of capital while maintaining acceptable risk-adjusted returns. The year has seen a flurry of M&A activity, with high-profile deals such as Livzon-Imexpharm, Ares-Medlatec, and Quadria-Tam Tri dominating headlines.
Additionally, existing private equity-backed platforms are pursuing growth through strategic add-ons. For instance, after acquiring Phuong Nam Hospital in 2022, CVC expanded its geographic reach beyond the Mekong Delta. Warburg Pincus has concentrated on upgrading facilities and enhancing specialty capabilities at Xuyen A, particularly with a new oncology center in the pipeline. Over six years, VinaCapital has fostered the growth of three hospital acquisitions and greenfield developments, enhancing Tam Tri Medical into a network of seven hospitals before its exit to Quadria Capital.
Dynamic Growth Vectors in M&A Activity
The concurrent M&A and platform expansion activities underscore multiple growth vectors driving Vietnam’s healthcare sector. New transactions and the expansion of existing platforms work in tandem to propel market development, creating a dynamic environment for investors.
Additionally, certain structural trends are becoming apparent. Geographically, Hanoi and Ho Chi Minh City remain focal points due to their concentrations of purchasing power and patient demographics. However, investors are increasingly looking to secondary cities as well, where resilient local operators have established robust positions.
Emphasis on Speciality Healthcare
The trend towards specialization within healthcare is gaining momentum. Fields such as oncology, ophthalmology, cardiology, and diagnostics are particularly attractive due to their favorable margins and enhanced patient loyalty. The presence of specialized talent and advanced equipment creates a defensive posture against market fluctuations, making these platforms increasingly appealing to investors.
Moreover, multi-location healthcare platforms are gaining greater valuation compared to single-asset facilities. Both the Ares-Medlatec and Quadria Capital-Tam Tri investments reflect a preference for diversified assets that mitigate concentration risk while offering pathways for future expansion.
Anticipating Future Trends
Looking ahead, private equity-backed entities like Xuyen A (Warburg Pincus), Phuong Chau (CVC), and Mat Sai Gon (KKR) are anticipated to pursue bolt-on acquisitions aimed at expanding geographic footprints and enhancing specialty capabilities.
As we approach 2026, exit opportunities will present themselves, particularly given that PE investments from 2020 to 2022 are nearing their natural hold periods. Successful exits not only have the potential to set new valuation benchmarks for Vietnamese healthcare platforms but will also provide proof of concept for the investment thesis, encouraging further capital inflow.
Conclusion: A Bright Future Ahead
Vietnam’s healthcare sector stands out as one of Southeast Asia’s most vibrant realms for M&A activity. Whether through first-time acquisitions by new investors, strategic expansions from established operators, or preparatory maneuvers by healthcare companies, the trajectory of this sector remains upward as it continues to attract both local and foreign investment.