Growing Momentum in Vietnam’s Healthcare M&A Landscape Amid Global Slowdown
By Giao Thuy, Minh Hue
Sun, July 6, 2025 | 10:40 am GMT+7
Despite a global downturn in healthcare mergers and acquisitions (M&A), Vietnam’s market has experienced significant activity in the first half of 2025. This growth reflects the nation’s increasing attractiveness to foreign investors and highlights its potential as a burgeoning healthcare hub.
Major Deals Reshaping the Landscape
In May 2025, Lian SGP Holding Pte. Ltd., a subsidiary of the Chinese pharmaceutical firm Livzon Group, made headlines by announcing its intent to acquire nearly 65% of Imexpharm, Vietnam’s leading pharmaceutical company, for over VND5.73 trillion (approximately $218.87 million). Once finalized, Imexpharm will operate as an indirect subsidiary of Livzon, further integrating the global pharmaceutical player into the Vietnamese market.
The agreement, initiated on May 22, involved purchasing shares from three significant stakeholders: SK Investment Vina III (affiliated with South Korea’s SK Group), Sunrise (Binh Minh Kim Investment JSC), and KBA Investment JSC. The monetary breakdown revealed that SK Investment stood to gain more than VND4.21 trillion ($160.8 million), while Sunrise and KBA would receive VND862.5 billion and nearly VND652 billion, respectively.
Livzon is recognized for its diverse portfolio, which includes chemical drugs, biologics, active pharmaceutical ingredients, and traditional Chinese medicine. Interestingly, Vietnam’s state-owned pharmaceutical enterprise, Vinapharm, retains a 22.04% interest in Imexpharm, which plans to achieve an annual gross revenue growth rate of 15% from 2024 through 2030.
Entry of Foreign Investors
In March 2025, Mekong Enterprise Fund IV (MEF IV), part of Mekong Capital, ventured into private healthcare by investing in Thai Nguyen-based TNH Hospital Group. Chris Freund, CEO of Mekong Capital, emphasized that his firm had spent over a decade searching for suitable hospital investments. They selected TNH for its visionary leadership, indicating that the right management is a critical factor for foreign investment.
The incoming foreign capital has been notable, with Singapore-based Blooming Earth Fund recently purchasing over 6.72 million TNH shares, boosting its holding to 13.74%. Not to be outdone, Access S.A. of Luxembourg acquired more than 1.6 million TNH shares, raising its stake to 8.05%. These moves underscore a robust interest in Vietnam’s healthcare sector, especially from foreign entities.
Continued Investment Momentum
Vietnam’s healthcare M&A activity during the first half of 2025 accentuates the market’s resilience, especially amid global challenges. Since 2023, foreign investors have consistently targeted the medical sector. Noteworthy deals include a strategic partnership forged between FPT Long Chau Pharmacy and IHH Healthcare Singapore in January 2024, making IHH’s presence in Vietnam more prominent. Although the exact financial details were undisclosed, such alliances signal growing confidence from top regional healthcare providers in Vietnam’s potential.
In 2023, Singapore’s Thomson Medical and Raffles Medical also entered the Vietnamese market, forming strategic collaborations with FV Hospital and American International Hospital (AIH), respectively. South Korea’s Dongwha Pharm took a significant step as well by acquiring a controlling stake in the Trung Son pharmacy chain. Most recently, Swiss investment fund KWE Beteiligungen AG increased its stake in Binh Dinh Pharma & Medical Equipment JSC (DBD) from 9.93% to 10.01%, securing its position as a major shareholder behind the Vietnamese state.
Sector Growth Amid Global Declines
Despite the slowdown of global M&A activities—where the healthcare segment saw volumes and values decline significantly—Vietnam’s sector continues to demonstrate promise. According to PwC’s recent report, healthcare M&A volume and value globally fell by about 22% and 25%, respectively, from H1/2024 to H1/2025. The pharmaceutical and life sciences sectors notably experienced a 19% decline in deal volume and a staggering 33% in deal value, largely due to reduced average transaction sizes.
Surprisingly, healthcare services displayed a divergent trend, with a 25% drop in volume countered by a 50% rise in deal value. This discrepancy suggests that while there may be fewer transactions, the remaining deals tend to be more substantial in scale.
The Future of Healthcare M&A
Looking ahead, two primary forces are reshaping the global healthcare landscape: artificial intelligence (AI) and demographic shifts. PwC experts predict that the next wave of M&A activity will be driven by the integration of technology and a focus on customer-centric innovations, both of which offer significant growth avenues for investors.
In conclusion, while the global healthcare M&A environment faces a slowdown, Vietnam’s market reflects a different narrative—one of resilience, opportunity, and sustained interest from foreign investors eager to tap into its burgeoning healthcare sector. As Vietnam continues to navigate the complexities of a global economy in flux, its healthcare landscape is poised for transformative growth and innovation.