By
Tri Duc
Mon, April 15, 2024 | 5:09 pm GMT+7
Warburg Pincus, a renowned U.S. investment firm, has set its sights on Xuyen A, a significant player in Vietnam’s private hospital sector. This strategic move is part of Warburg Pincus’s broader commitment to enhance healthcare access and quality in the region.
During a signing ceremony held in Ho Chi Minh City, Minh Do, the country director of Warburg Pincus, and Nguyen Thi Thu Thuy, the chairwoman of Xuyen A Hospital Investment JSC, finalized the investment agreement to mark Xuyen A’s 10-year anniversary. While specifics of the partnership were not disclosed, the collaboration is expected to bolster Xuyen A’s growth and service offerings, reflecting Warburg Pincus’s ongoing interests in impactful healthcare investments.
Representatives of Xuyen A hospital and Warburg Pincus sign an agreement in Ho Chi Minh City on April 15, 2024. Photo courtesy of Xuyen A hospital.
As part of the anniversary celebration, Xuyen A also unveiled its latest addition—a state-of-the-art oncology center. This facility aims to enhance cancer treatment in Vietnam, alongside the announcement of collaborative initiatives with leading healthcare institutions within the country. These moves signify Xuyen A’s ambition to not just expand its facilities but also to elevate the standards of healthcare through expert partnerships.
The Xuyen A General Hospital system currently operates four facilities across Ho Chi Minh City and nearby provinces, cumulatively boasting over 1,000 beds. Additionally, Xuyen A is spearheading two new hospital projects in the Central Highlands province of Dak Nong, promising to extend its healthcare reach to underserved areas of Vietnam.
Warburg Pincus has been a notable presence in Vietnam since 2013, investing over $2 billion across various sectors. Its portfolio encompasses investments in major Vietnamese enterprises such as Techcombank, Vincom Retail, Novaland, and the fintech giant MoMo, illustrating its diverse interests in the rapidly evolving Vietnamese market.
Recently, Vietnam has attracted numerous significant foreign investments in the medical and pharmaceutical sectors. With medical tourism blossoming, the industry is worth approximately $2 billion, attracting over 300,000 international visitors annually seeking medical care.
The largest merger and acquisition in Vietnam’s healthcare landscape occurred in July 2023, when the Singapore-based Thomson Medical Group acquired FV Hospital in Ho Chi Minh City for a staggering $381.4 million. This deal was notable as it marked the largest healthcare acquisition in Southeast Asia since 2020, comprising a substantial upfront payment alongside performance-based bonuses.
Moreover, in October of the same year, American International Hospital (AIH) in Ho Chi Minh City announced a strategic partnership with Singaporean Raffles Medical Group. This collaboration is set to bolster governance and introduce specialized services like oncology and general surgery.
In a further testament to the growing importance of the industry, South Korean pharmaceutical group Dongwha Pharm invested KRW39 billion (approximately $30 million) to purchase a 51% stake in Trung Son Pharma, marking a significant transaction within Vietnam’s pharmaceutical realm.