Report

Vietnam Hospital Market was valued at USD 8310.31 Million in 2024 and is expected to reach USD 11603.30 Million by 2030 with a CAGR of 5.92% during the forecast period. The Vietnam hospital market is being driven by several key factors. Rapid urbanization and industrialization are leading to lifestyle changes and an increase in non-communicable diseases, boosting the demand for healthcare services. Rising disposable incomes and expanding health insurance coverage are enabling more people to access quality healthcare, fueling demand for hospital services. Government initiatives aimed at improving healthcare infrastructure, enhancing medical education and training, and promoting medical tourism are attracting investments in the hospital sector. The COVID-19 pandemic has highlighted the importance of robust healthcare systems, leading to increased investments in hospital infrastructure, medical equipment, and healthcare technologies to strengthen healthcare preparedness and response capabilities. Collectively, these factors are driving growth and innovation in the Vietnam hospital market.
Key Market Drivers
Population Growth and Demographic Shifts
Vietnam's population dynamics are undergoing a transformative phase characterized by steady growth intertwined with profound demographic transitions. The nation is witnessing not only a numerical expansion but also a noteworthy aging trend, heralding a paradigm shift in its population structure. This demographic evolution is marked by a notable surge in the proportion of elderly individuals, indicating a demographic landscape increasingly shaped by longevity and aging demographics. Vietnam's population, currently at 101.34 million as of January 2025, is projected to reach 101.6 million by mid-year. Representing 1.23% of the global population, Vietnam is ranked 16th in terms of population size. This ongoing population growth, coupled with demographic shifts, is driving significant demand in the healthcare sector, particularly within the hospital market in Vietnam. As the population expands, the need for healthcare services, infrastructure, and facilities continues to increase, presenting opportunities for growth within the industry. The repercussions of this demographic phenomenon extend far beyond mere statistical changes. As Vietnam's population ages, there emerges an imperative for a reorientation of healthcare systems and services to meet the evolving needs of its populace. The aging process is often accompanied by a higher prevalence of chronic conditions, degenerative diseases, and age-related ailments, necessitating a greater demand for comprehensive healthcare solutions.
In particular, the surge in elderly individuals propels an augmented requirement for healthcare services, including specialized hospital care tailored to the unique medical needs of older adults. A 2019 UNFPA report indicated that approximately 11.9% of Vietnam's population was aged 60 and above, with this figure projected to surpass 25% by 2050. This significant aging trend, coupled with population growth, is driving increased demand for healthcare services, particularly in the hospital sector. As the elderly population expands, there is a greater need for specialized care, healthcare infrastructure, and medical resources, fueling growth in the Vietnamese hospital market. Furthermore, this demographic shift is likely to prompt advancements in healthcare technology, elder care facilities, and healthcare policy, presenting additional opportunities for investment and innovation within the sector. With advancing age comes a heightened susceptibility to a spectrum of health challenges, ranging from cardiovascular diseases and neurological disorders to musculoskeletal ailments and cognitive decline. Consequently, healthcare facilities, particularly hospitals, are poised to experience an upsurge in demand as they become focal points for addressing the multifaceted healthcare needs of aging populations. Older adults typically necessitate a more comprehensive and holistic approach to healthcare delivery, encompassing preventive measures, diagnostic assessments, therapeutic interventions, and rehabilitative services. Consequently, hospitals must adapt and innovate to cater to the diverse and evolving healthcare requirements of elderly individuals, integrating geriatric care principles, multidisciplinary approaches, and age-friendly environments into their service delivery frameworks.
Urbanization and Lifestyle Changes
Urbanization in Vietnam is occurring at a rapid pace, with a significant portion of the population migrating from rural to urban areas in search of better employment opportunities and improved living standards. Urban lifestyles often lead to changes in dietary habits, increased sedentary behavior, and higher stress levels, contributing to the rise in non-communicable diseases such as diabetes, cardiovascular diseases, and cancer. The prevalence of these lifestyle-related conditions is driving the demand for hospital services, particularly specialized care and treatment facilities.
Increasing Healthcare Expenditure
Vietnam's healthcare expenditure has been steadily increasing over the years, driven by factors such as rising income levels, expanding health insurance coverage, and government investments in healthcare infrastructure and services. Vietnam has undergone a remarkable transformation, transitioning from being one of the globe's poorest nations to achieving a status as a lower-middle-income country, with a GDP per capita reaching USD 4,086 in 2022. According to the International Monetary Fund (IMF) World Economic Outlook, Vietnam's GDP surpassed 406.45 billion U.S. dollars in the same year, positioning it as the fifth-largest economy in Southeast Asia and 37th globally. As projected by the World Bank, there is an anticipation of a rapid expansion in the middle and affluent classes, with expectations that they will comprise 20% of the country's population by 2030. Vietnam's sustained economic progress, the rise of its middle class, and the escalating need for top-tier healthcare services are pivotal catalysts propelling the healthcare system forward. To enhance and broaden their offerings, boost operational effectiveness, and deliver superior care, investments are being channeled into outfitting healthcare facilities with cutting-edge medical equipment. As more people gain access to healthcare services and are willing to spend on medical treatments, hospitals are experiencing a surge in patient volumes and revenue streams. Government initiatives aimed at enhancing healthcare accessibility and quality are further boosting healthcare expenditure and driving market growth.
Healthcare Reforms and Policy Support
The Vietnamese government has implemented several healthcare reforms and policies aimed at improving healthcare access, affordability, and quality across the country. Initiatives such as the Health Insurance Law, which aims to achieve universal health coverage, and the National Strategy on Health Services Development have expanded health insurance coverage, increased public spending on healthcare, and promoted private sector participation in healthcare delivery. These reforms are creating a favorable regulatory environment for hospitals, encouraging investments in healthcare infrastructure and services, and driving market expansion.
Key Market Challenges
Infrastructure and Capacity Constraints
One of the foremost challenges confronting the Vietnam Hospital Market is the inadequate healthcare infrastructure and capacity constraints. Despite significant progress in recent years, the country's healthcare system continues to grapple with shortages of hospital beds, medical equipment, and skilled healthcare professionals, particularly in rural and remote areas. The rapid urbanization and population growth further exacerbate the strain on existing healthcare facilities, leading to overcrowding, long waiting times, and suboptimal patient outcomes. Addressing these infrastructure deficiencies and enhancing capacity-building efforts are critical to ensuring equitable access to quality healthcare services across Vietnam.
Human Resource Shortages and Skills Gap
Another significant challenge facing the Vietnam Hospital Market is the shortage of skilled healthcare professionals and the persistent skills gap within the workforce. While the country boasts a large pool of healthcare workers, including doctors, nurses, and allied health professionals, there remains a scarcity of specialists, particularly in fields such as oncology, cardiology, and critical care. The uneven distribution of healthcare professionals between urban and rural areas exacerbates disparities in healthcare access and quality. Efforts to address these workforce challenges entail strengthening medical education and training programs, incentivizing rural practice, and promoting continuous professional development to enhance the competency and capacity of the healthcare workforce.
Key Market Trends
Medical Tourism and International Investments
Vietnam's burgeoning status as a hub for medical tourism is swiftly gaining global recognition, drawing patients not only from neighboring nations but also from overseas Vietnamese communities in pursuit of top-notch healthcare services that are both superior in quality and economically viable. This burgeoning trend is catalyzing a transformative wave within the country's healthcare landscape, prompting hospitals to make strategic investments in cutting-edge medical technologies, infrastructure enhancements, and staff training initiatives geared towards meeting the discerning needs of medical tourists. In April 2024, Warburg Pincus, a leading U.S.-based global growth investment firm, announced its strategic investment in Xuyen A (Trans-Asia), a prominent private hospital group headquartered in Ho Chi Minh City. Xuyen A currently operates four large-scale, multi-specialty hospitals in densely populated areas of southern Vietnam, with its flagship facility located in the Cu Chi District of Ho Chi Minh City. This international investment underscores the increasing appeal of Vietnam's healthcare sector, attracting foreign capital to meet the rising demand for advanced medical services in the region.
In response to the escalating demand for high-caliber healthcare services, hospitals across Vietnam are proactively modernizing their facilities and bolstering their clinical capabilities with state-of-the-art medical equipment and advanced treatment modalities. From pioneering surgical procedures to innovative diagnostic technologies, these investments are designed to elevate the standard of care and ensure that medical tourists receive world-class treatment options that rival those offered in established medical tourism destinations. The surge in international patient inflows has sparked a flurry of collaborative ventures and strategic alliances between local healthcare providers and global industry players. International healthcare providers and investors are increasingly recognizing the immense potential of Vietnam's burgeoning medical tourism sector and are actively seeking opportunities to penetrate this lucrative market. Through partnerships with local hospitals or the establishment of their own medical facilities, these stakeholders aim to capitalize on the growing demand for healthcare services among domestic and international patient cohorts alike.
Public-Private Partnerships and Investment Opportunities
Public-private partnerships (PPPs) are playing a crucial role in Vietnam's healthcare sector, facilitating the development of healthcare infrastructure, delivery models, and service quality. The government is encouraging private sector participation in healthcare through incentives such as tax breaks, land allocation, and regulatory support. This has led to increased investments from domestic and international investors in hospital construction, expansion, and modernization projects. In August 2024, the Vietnamese government took steps to advance public-private partnerships (PPP) within the healthcare sector to enhance the country's healthcare system. A consultation workshop held by the Ministry of Health in Hanoi on August 21 focused on a draft circular that outlines the framework for implementing PPP healthcare investment projects. The circular seeks to address the challenges faced by both regulatory bodies and investors in the sector. Comprising four chapters and 23 articles, the draft circular offers detailed guidance on PPP investment activities in healthcare, in alignment with Clause 3, Article 93 of Decree No. 35/2021/ND-CP, which governs the implementation of PPP laws. This initiative opens up significant investment opportunities in the healthcare industry, fostering collaboration between the public and private sectors to meet growing healthcare demands. The government's commitment to promoting PPPs in healthcare presents lucrative investment opportunities for private healthcare providers, pharmaceutical companies, and medical equipment manufacturers.
Segmental Insights
Ownership Insights
Based on ownership, the Private hospitals emerged as the fastest growing segment in the Vietnam Hospital market during the forecast period. As Vietnam's population continues to grow and the middle class expands, the demand for high-quality healthcare services is rising. According to the World Health Organization (WHO), Vietnam ranks 5th in life expectancy for men and 2nd for women among 10 Southeast Asian countries. On average, the Vietnamese population has a life expectancy of 73.7 years, although they live with chronic illness for approximately 10 years. Private hospitals are increasingly attractive to consumers, particularly in urban centers like Ho Chi Minh City and Hanoi, due to their higher service standards, shorter wait times, and specialized care offerings. With the ongoing economic growth, more individuals are experiencing increased disposable incomes, allowing them to access private healthcare. This trend is especially prevalent among the growing middle class, who are seeking better healthcare options than those provided by the public system. While the government has been promoting public-private partnerships (PPP) to address gaps in public healthcare, private hospitals benefit from fewer regulatory constraints and are able to scale operations more quickly. Moreover, rising international investments in private healthcare are further fueling the sector's expansion. Private hospitals are also able to offer specialized services that public hospitals, often overwhelmed by high patient volumes, struggle to provide. As a result, private healthcare is becoming increasingly appealing, particularly for patients seeking elective procedures or expecting higher standards of care. These factors collectively position the private hospital sector as the fastest-growing segment of Vietnam's healthcare market.
Type Insights
Based on Type, multispecialty hospitals emerged as the dominating segment in the Vietnam Hospital market in 2024. These multispecialty hospitals are characterized by their extensive facilities, advanced medical technologies, and a diverse team of specialists spanning various medical disciplines. With a focus on providing integrated and holistic healthcare solutions, multispecialty hospitals cater to a wide spectrum of healthcare needs, ranging from routine medical care to complex surgical procedures and specialized treatments. The dominance of multispecialty hospitals in the Vietnam Hospital Market can be attributed to several factors. Multispecialty hospitals offer convenience and efficiency by providing patients with access to a wide range of medical services and specialists in a single location. This integrated approach to healthcare delivery streamlines the patient experience, reduces the need for referrals and coordination between multiple healthcare providers, and ensures continuity of care across different medical specialties.
Multispecialty hospitals are well-equipped to meet the growing demand for specialized medical services and treatments in Vietnam. With advancements in medical technology and increasing prevalence of chronic diseases and complex health conditions, there is a rising need for specialized care across various medical disciplines, including cardiology, oncology, orthopaedics, and neurology. Multispecialty hospitals, with their specialized departments and expert teams, are uniquely positioned to address these evolving healthcare needs and provide high-quality, specialized care to patients.
Regional Insights
Based on Region, Southern Vietnam emerged as the dominating region in the Vietnam Hospital market in 2024. Several factors contribute to the prominence of the Southern region in shaping the trajectory of the healthcare sector. Ho Chi Minh City, the economic and financial hub of Vietnam, serves as a focal point for healthcare investment and development in the Southern region. The city boasts a concentration of top-tier hospitals, medical centers, and specialty clinics, equipped with state-of-the-art facilities and advanced medical technologies. These healthcare institutions cater to a diverse patient population, offering a wide range of medical services, from routine healthcare to specialized treatments and surgical procedures. The Southern region benefits from robust infrastructure and transportation networks, facilitating the accessibility and connectivity of healthcare services to residents across urban and rural areas. Improved transportation links and urban development initiatives have enhanced healthcare access and mobility, enabling patients from neighboring provinces and regions to access healthcare facilities in Ho Chi Minh City and other major cities within the Southern region.
Key Market Players
� Hoan My Medical Corporation
� Family General Hospital
� Tam Anh General Hospital Joint Stock Company
� Vinmec Health System
� Franco-Vietnamese Hospital
� Medlatec Group
� Tam Duc Heart Hospital (HCMC)
� Thu Cuc International General Hospital
� Family Medical Practice Vietnam
� Hong Ngoc Hospital Company Limited
Report Scope:
In this report, the Vietnam Hospital Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:
� Vietnam Hospital Market, By Ownership:
o Public
o Private
� Vietnam Hospital Market, By Type:
o General
o Multispecialty
o Specialty
� Vietnam Hospital Market, By Type of Services:
o In-Patient Services
o Out-Patient Services
� Vietnam Hospital Market, By Bed Capacity:
o Above 500 beds
o 100-500 beds
o up to 100 beds
� Vietnam Hospital Market, By Region:
o Southern Vietnam
o Northern Vietnam
o Central Vietnam
Competitive Landscape
Company Profiles: Detailed analysis of the major companies present in the Vietnam Hospital Market.
Available Customizations:
Vietnam Hospital Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:
Company Information
� Detailed analysis and profiling of additional market players (up to five).