When foreign healthcare investors look at Vietnam, they often ask the same strategic question:
“Should we start with a clinic, or go straight to a hospital?”
Both options can be attractive. Clinics allow a lighter, more flexible entry into the market, while hospitals offer a larger platform for brand building and service expansion. However, the legal, financial and operational implications of each model are very different.
In this article, Healthcare Setup VN compares the main differences between opening a clinic and opening a hospital in Vietnam, from a legal and practical perspective.
- Legal Definitions and Scope of Services
The first difference lies in how Vietnamese law defines each type of facility.
1.1 Clinics
In general terms, a clinic is a medical establishment that:
- Provides outpatient services (no or limited in-patient beds)
- Focuses on examination, minor procedures and selected treatments
- May be general or specialty (dental, aesthetics, rehabilitation, internal medicine, etc.)
Most clinics do not offer full in-patient care, intensive care or operating theatres for major surgery. Their scope of services is typically narrower and more focused.
1.2 Hospitals
A hospital is a larger, more complex facility that:
- Admits and treats in-patients
- Operates multiple departments and specialties
- Provides surgery, critical care and round-the-clock medical services
- Meets higher standards on premises, equipment and staffing
Because of its wider and more intensive scope of healthcare services, a hospital is subject to stricter licensing standards and more detailed regulatory oversight.
Key takeaway:
Clinics are usually outpatient-focused with a defined specialty or set of services. Hospitals are comprehensive, multi-department facilities that handle in-patient care and more complex procedures.
- Investment Capital and Project Scale
2.1 Clinics: Lower Capital, Easier to Pilot
Clinics generally require less capital than hospitals. Investment capital is mainly driven by:
- Premises and fit-out costs
- Medical equipment for the chosen specialty
- Basic IT and management systems
- Initial working capital for staff and operations
For foreign investors, clinics are often a practical way to:
- Test the market and build brand recognition;
- Develop referral networks with local hospitals;
- Learn how Vietnamese healthcare regulation operates in practice.
2.2 Hospitals: High-Capital, Long-Term Commitment
Hospitals require significantly higher investment, including:
- Land or long-term lease of a larger premises
- Construction or extensive renovation to meet hospital standards
- High-end diagnostic and treatment equipment
- Comprehensive IT systems, including hospital information systems
- Larger staff numbers, including specialists, nurses and support personnel
- Higher working capital to cover complex operations
From a legal point of view, the investment authority will scrutinise hospital projects more closely, especially:
- Capital adequacy and financing structure;
- Investor experience and track record;
- Consistency with local healthcare master plans.
Key takeaway:
Clinics are suitable for a capital-light entry into the market. Hospitals are high-capital, long-term infrastructure projects requiring a deeper commitment.
- Licensing Complexity and Timeline
3.1 Clinic Licensing
To open a foreign-invested clinic, investors usually go through:
- Investment Registration Certificate (IRC) – recognizing the investment project;
- Enterprise Registration Certificate (ERC) – establishing the company;
- Clinic Operating License – authorizing the clinic to provide medical services.
While the process is detailed and document-heavy, the number of departments and service lines to be approved is relatively limited compared to a hospital. Timelines vary, but a well-prepared clinic project can generally move faster than a hospital.
For investors who decide to start with a clinic, our step-by-step guide on How to open a foreign-invested clinic in Vietnam provides a detailed legal roadmap.
3.2 Hospital Licensing
Hospital projects face a more complex set of approvals, which may include:
- Approval of the investment policy (for larger or sensitive projects);
- IRC and ERC for the project company;
- Construction permits and environmental approvals;
- Fire-prevention approvals at hospital scale;
- Approval of the hospital’s organisational structure, department list and bed capacity;
- Hospital Operating License, covering multiple departments and technical procedures.
Authorities will typically conduct more rigorous inspections of:
- Building and technical standards;
- Equipment and department readiness;
- Staffing levels and qualification of heads of departments;
- Internal regulations and patient-care systems.
Key takeaway:
Clinic licensing is demanding but more straightforward. Hospital licensing is multi-layered, often involving several agencies and a longer, more iterative process.
- Premises, Construction and Technical Standards
4.1 Clinics: Commercial Building + Fit-Out
Clinics are often located in:
- Office buildings
- Commercial towers
- Mixed-use developments
- Street-front premises
From a legal perspective, the key is that the premises:
- Have a lawful lease or ownership;
- Are zoned or permitted for healthcare use;
- Meet minimum space and layout requirements for the specific specialty;
- Comply with fire-safety and building regulations.
Fit-out is still technical, but typically lighter than a hospital construction project.
4.2 Hospitals: Purpose-Built or Heavily Adapted Facilities
Hospitals require:
- Larger floor areas and more complex building layouts;
- Dedicated areas for operating theatres, inpatient wards, ICUs, emergency, imaging, etc.;
- Higher standards of structural, mechanical and electrical systems;
- Advanced fire-prevention and evacuation plans.
Regulators will inspect hospital premises carefully before granting operating licenses. In some cases, alignment with regional healthcare planning is also considered – for example, how the hospital fits within the area’s network of public and private facilities.
Key takeaway:
A clinic can often be developed through a high-quality fit-out of existing commercial space. A hospital usually involves construction or major refurbishment to match strict hospital design standards.
- Staffing and Organizational Requirements
5.1 Clinics: Leaner Teams, Focused Roles
Clinics usually:
- Operate with smaller teams;
- Require one person in charge of professional practice (often the medical director);
- Need enough doctors, nurses and technicians to cover their approved scope of services;
- Have simpler organizational
While all practitioners must have valid practice certificates, the overall HR structure is less complex than in a hospital.
5.2 Hospitals: Multi-Level, Multi-Department Staffing
Hospitals must demonstrate:
- Adequate numbers of doctors, nurses and allied health professionals per department;
- Appointed heads of departments who meet specific seniority criteria;
- A medical director with substantial experience;
- Support departments (pharmacy, infection control, biomedical engineering, etc.).
From a regulatory point of view, staffing is a critical component of hospital licensing and ongoing compliance. Any changes in key positions may require notification or approval from health authorities.
Key takeaway:
Clinic HR is focused and lean. Hospital HR is multi-tiered, with numerous positions that must be filled, documented and kept up to date from a regulatory standpoint.
- Risk, Compliance and Operational Burden
6.1 Risk and Compliance in Clinics
Clinics are still subject to inspections, reporting and compliance obligations, but:
- The number of departments is smaller;
- Clinical risk is present but more limited in scope;
- Administrative overhead, while significant, is more manageable.
For foreign investors, clinics create an opportunity to build a compliance culture on a smaller scale first.
6.2 Risk and Compliance in Hospitals
Hospitals face higher levels of risk, including:
- In-patient safety and infection control;
- Surgical and procedural complications;
- Emergency and critical care;
- Pharmaceutical and controlled-substance management.
Regulators may conduct more frequent and deeper inspections. Hospitals must also maintain more extensive reporting systems and internal audits.
Many of risks in clinic or hopital projects come from similar planning errors. We highlight them in our article on Key mistakes foreign healthcare investors make in Vietnam – and How to avoid them.
Key takeaway:
Hospitals bear a heavier clinical and regulatory risk profile, which translates into more sophisticated governance and compliance structures.
- Strategic Considerations for Foreign Investors
7.1 When a Clinic May Be the Better First Step
A clinic may be more suitable if:
- You are entering the Vietnamese market for the first time;
- You want to validate demand for your services before committing hospital-level capital;
- Your core strength is in outpatient specialties (e.g. dental, aesthetics, diagnostics);
- You plan a network model (multiple clinics) rather than a single flagship hospital.
Clinics allow you to:
- Build brand awareness;
- Understand patient expectations and referral patterns;
- Refine your service offerings and prices;
- Learn how regulators and local partners work.
7.2 When a Hospital May Be Appropriate
A hospital may be the right choice if:
- You already have strong experience operating hospitals in other markets;
- You aim to bring a comprehensive care model (in-patient + out-patient + surgery);
- You want a flagship facility as part of a regional or international brand;
- You are prepared for a multi-year development and licensing journey.
From a legal standpoint, hospital projects require early strategic planning, including:
- Site selection and land/lease structure;
- Corporate and financing structure;
- Engagement with local authorities and healthcare planners.
- How Healthcare Setup VN Can Support Clinics and Hospitals
Whether you choose to open a clinic or a hospital, a well-designed legal strategy is essential.
At Healthcare Setup VN, powered by TTVN Legal, we assist:
- International healthcare groups
- Specialist clinic operators
- Diagnostic and imaging providers
- Hospital investors and joint ventures
Our support can cover:
- Project structuring and feasibility – choosing between clinic, hospital or a staged approach;
- Licensing roadmap – from IRC and ERC to operating licence, tailored to your project scale;
- Preparation of application dossiers – investment documentation, internal regulations, staffing plans and equipment lists;
- Regulatory liaison – working with investment, construction and health authorities;
- Staff licensing and immigration – practice certificates, work permits and residence cards for foreign professionals;
- Ongoing compliance – expansions of scope, additional locations, and regulatory updates.
- Conclusion
The decision between opening a clinic and opening a hospital in Vietnam is not only a business choice – it is a regulatory and strategic one.
- Clinics offer a flexible, capital-lighter entry into the market;
- Hospitals offer a comprehensive platform, but require significantly more capital, time and compliance capacity.
Both can be successful if they are planned and licensed correctly.
If you are exploring healthcare investment opportunities in Vietnam and are unsure whether a clinic or a hospital is the better starting point, the team at Healthcare Setup VN / TTVN Legal would be pleased to help you evaluate your options and design the most suitable legal roadmap.
Contact us to discuss your project in confidence and receive a tailored clinic or hospital setup plan.
