Vietnam a pivotal market for Thomson Medical Group

Could you share Thomson Medical’s plan to expand its presence in Vietnam in 2024 and beyond?

Thomson Medical Group’s acquisition of FV Hospital is a landmark transaction, marking the largest healthcare deal in Southeast Asia since 2020 and the largest in Vietnam to date. This acquisition is a testament to our long-term vision of establishing a dominant healthcare presence across Southeast Asia.

In the short term, our priority is to seamlessly integrate FV Hospital into the Thomson Medical family. This integration is not just about merging operations but enhancing the quality of care and introducing more sophisticated healthcare services to our patients across our entire Southeast Asian network. We are committed to ensuring that this transition translates into tangible benefits for our patients, staff, and the broader community.

Looking ahead, FV Hospital serves as a strategic cornerstone for our expansion in Vietnam. Our medium- to long-term strategy involves leveraging this foothold to explore and expand into various healthcare adjacencies. This includes developing specialised medical centres, enhancing telemedicine services, and potentially establishing new facilities that cater to the evolving healthcare needs of the Vietnamese population.

Furthermore, we plan to invest in advanced medical technologies and innovative healthcare solutions that can be scaled across our network. Our goal is to create a comprehensive healthcare ecosystem in Vietnam that not only addresses current needs but also anticipates future healthcare challenges and opportunities.

Overall, Thomson Medical Group is dedicated to building a robust and sustainable healthcare presence in Vietnam, contributing to the country’s healthcare landscape while reinforcing our commitment to excellence in patient care throughout Southeast Asia.

Some regional markets could reach a saturation point over the next 5-10 years, pushing healthcare companies to enter newer, growing markets like Vietnam. What is the potential of Vietnam’s healthcare market compared with regional ones?

Vietnam is a pivotal market for Thomson Medical Group’s expansion for several strategic reasons.

Firstly, the acquisition of FV Hospital in Vietnam significantly enhances our footprint, positioning Thomson Medical Group within some of the most dynamic healthcare markets in Southeast Asia, including Singapore and Malaysia, and solidifying our status as a regional healthcare powerhouse. Vietnam’s geographical proximity to Singapore and its substantial market potential make it an ideal destination for our regional expansion efforts.

Vietnam’s rapid economic growth over recent years has led to the emergence of a burgeoning middle class and increased healthcare expenditure, providing substantial room for growth. The domestic demand for high-quality healthcare services is on the rise, driven by the large, youthful population, an ageing demographic, and a growing expatriate community, all fuelled by substantial foreign direct investment.

Furthermore, Vietnam is gaining recognition as an emerging medical tourism hub, attracting patients from neighbouring countries like Myanmar, Laos, and Cambodia for various medical treatments and procedures. This trend offers significant opportunities for healthcare companies to provide specialised services to international patients and capture a portion of the medical tourism market.

Compared to more mature markets in the region, Vietnam’s healthcare landscape is dynamic and rapidly evolving, presenting unparalleled opportunities for growth and innovation. This positions Thomson Medical Group to meet the increasing demand for quality healthcare services and also contribute significantly to the country’s healthcare development moving forward.

How do you see the expansion of Singapore companies to contribute to the development of Vietnam’s healthcare market?

This set to create a mutually beneficial exchange of expertise, fostering growth and development in Vietnam’s healthcare sector, while also enriching the regional healthcare landscape.

Our integration of FV Hospital demonstrates the potential for synergistic collaborations. By incorporating FV Hospital into our network, we aim to enhance efficiencies and leverage shared knowledge and practices. This includes fostering cross-border collaboration and elevating the quality and sophistication of healthcare services we collectively offer.

Our goal is to contribute to the advancement of medical excellence across Southeast Asia, including Vietnam. As companies like Thomson Medical Group and Raffles Medical Group expand their presence, they bring with them a commitment to high standards of patient care, innovation, and collaboration.

This expansion facilitates a collaborative environment where both local and international expertise are exchanged, leading to continuous improvement and innovation in healthcare delivery. Such partnerships are essential for addressing the evolving healthcare needs of the Vietnamese population and ensuring that high-quality medical services are accessible to all.

Speaking at the 15th Vietnam M&A Forum 2023 themed Thriving Together that was organised by VIR on November 28, Dr. Melvin Heng, executive director and group CEO of Thomson Medical Group, emphasised the pivotal role of mergers and acquisitions (M&A) in this expansion.

Singaporean healthcare group Thomson Medical Group has completed its previously announced acquisition of FV Hospital.

On January 17, the Singaporean Thomson Medical Group announced that FV Hospital has become a member after an acquisition deal worth VND9 trillion (around $380 million).