GIC leads $203m investment in Vietnam hospital

Local conglomerate Vingroup will remain the controlling shareholder. Vinmec will continue to reinvest all its income into its business as part of a commitment by Vingroup that the asset remains non-profit. The fresh capital will be used for an expansion of the medical network and to improve treatment services.

Vinmec brands itself as an international-standard healthcare provider with a portfolio of seven hospitals and five clinics nationwide. Of these, Vinmec Times City International Hospital and Vinmec Central Park International Hospital were the first local facilities to receive accreditation from Joint Commission International, a US-based patient safety organization.

According to a statement, the company plans to leverage GIC’s expertise and investments and healthcare globally, including Metro Pacific Hospital, which the sovereign wealth fund first backed in 2014. Metro Pacific, the largest hospital chain in the Philippines, received a $680 million investment from a KKR-led consortium last year, prompting it to abandon plans for a PHP83.3 billion ($1.7 billion) IPO.

Investor interest in Vietnamese hospitals is in part underpinned by observations that the sector is morphing into a dual public-private structure similar to the US or Australia. Previous activity in this space includes Navis Capital Partners acquiring Hanoi French Hospital and Quadria Capital investing FV Hospital.

Last year, TPG Capital participated in the acquisition of Columbia Asia Healthcare, a regional operator with three hospitals in Vietnam.

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• Topics
• Southeast Asia
• Healthcare
• Expansion
• Vietnam
• GIC Private
• Growth capital