Vietnam is an attractive market for foreign healthcare investors. Rising demand for private care, a growing middle class and increasing health awareness all create real opportunities for clinics, hospitals and diagnostic centres.
Yet, many promising projects face long delays, unexpected costs or even fail to launch – not because the medical concept is wrong, but because of avoidable legal and regulatory mistakes.
In this article, Healthcare Setup VN highlights some of the most common mistakes foreign healthcare investors make in Vietnam – and what you can do differently.
- Treating Healthcare Like Any Other Service Business
The mistake:
Some investors assume that opening a clinic or diagnostic centre is similar to opening a normal service company. They focus on brand and marketing, but underestimate the depth of healthcare regulation.
A structured clinic setup roadmap can prevent may of those issues. You can find one in our guide on Opening a foreign-invested clinic in Vietnam.
Typical consequences:
- Project timelines that are unrealistic from the start
- Premises or equipment that do not meet healthcare standards
- Licensing applications being rejected or repeatedly “returned for correction”
How to avoid it:
- Acknowledge that healthcare in Vietnam is a highly regulated sector with its own laws, circulars and technical standards.
- Involve health-law experts early in the project – not only at the final licensing stage.
- Design the project with regulation in mind: scope of services, premises, staffing, equipment and reporting duties.
- Choosing Premises Before Checking Healthcare Requirements
The mistake:
Investors fall in love with a building or location (for example, a beautiful commercial tower) and sign a long-term lease before confirming whether the premises can actually be licensed as a healthcare facility.
Typical consequences:
- The building’s fire-safety or structural design does not meet healthcare standards
- The floor plan cannot accommodate required rooms (e.g. sterile areas, imaging rooms, emergency access)
- Local authorities refuse to approve the site for the intended scope of services
How to avoid it:
- Treat premises selection as a regulatory decision, not just a commercial one.
- Involve architects familiar with healthcare projects and legal advisors to review zoning, building permits and technical capacity before signing any lease.
- Include licensing and technical feasibility clauses in your lease agreements so you can exit or renegotiate if approvals cannot be obtained.
- Underestimating Investment Capital Requirements
The mistake:
Some investors plan capital solely based on business projections or head-office budgeting rules and ignore the expectations of Vietnamese authorities regarding minimum capital for sustainable operation.
Typical consequences:
- Investment capital that looks too low for the stated scope of services
- Questions from authorities about financial feasibility, causing delays
- Having to amend the investment project midway to increase registered capital
How to avoid it:
- Build a realistic capital plan that covers premises, equipment, IT systems and at least the first years of operation.
- Seek feedback on capital levels that are credible for your type of project (general clinic vs specialty centre vs hospital).
- Align your financial model with both business realities and regulatory expectations from the outset.
- Copying a Foreign Model Without Local Adaptation
The mistake:
An investor simply replicates their clinic or hospital model from another country (for example, Europe or Singapore) without adapting to Vietnam’s legal environment, patient expectations and operational culture.
Choosing the wrong facility model is another frequent source of delay. We compare clinics and hopitals in detail in our article on Differences between opening a clinic and a hopital in Vietnam.
Typical consequences:
- Service lists that do not match local demand or reimbursement practices
- Processes and documentation that conflict with Vietnamese regulations
- Poor communication and misunderstanding between foreign management and local staff
How to avoid it:
- Treat Vietnam as a distinct healthcare environment, not a copy-paste market.
- Adapt your clinical protocols, patient flow and documentation to Vietnamese law and culture, while maintaining your quality standards.
- Work with local professionals (lawyers, consultants, senior clinicians) to “translate” your model into something that fits both Vietnamese patients and regulators.
- Overlooking Licensing Links Between Investor, Facility and Staff
The mistake:
Investors view licensing as separate boxes: one for the company, one for the clinic, one for foreign doctors – and they manage them in isolation.
Typical consequences:
- Foreign doctors cannot start work because their practice licenses or work permits are not ready when the clinic opens
- The facility’s operating license does not match the true scope of services
- Authorities question inconsistencies between the investment project, the clinic license and staff qualifications
How to avoid it:
- Design a licensing roadmap that integrates:
- Investment Registration Certificate (IRC)
- Enterprise Registration Certificate (ERC)
- Clinic or hospital operating license
- Practice licenses, work permits and residence cards for foreign professionals
- Plan staffing and immigration in parallel with facility licensing, not after. For projects that rely on international experts, it is equally important to understand the Requirements for foreign doctors working in Vietnam.
- Ensure your internal HR and regulatory teams communicate regularly with your legal advisors.
- Underestimating Documentation and Translation Work
The mistake:
Investors assume that documents can be prepared “later” or in English only. They underestimate the need for notarization, consular legalization and Vietnamese translations.
Typical consequences:
- Significant delays while waiting for legalized foreign documents
- Rejection of dossiers due to minor formalities (e.g. outdated certificates, missing stamps)
- Increased costs and frustration for both investor and local team
How to avoid it:
- Prepare a document checklist early for each licensing step: investment, company, clinic, staff.
- Allocate budget and time for official translations and legalization of foreign documents.
- Use a central document manager or law firm to track versions and expiry dates (e.g. criminal records, health certificates).
- Ignoring Ongoing Compliance After Licensing
The mistake:
Once the clinic or hospital license is granted, some investors shift focuses entirely to operations and forget that healthcare establishments in Vietnam remain under continuous regulatory oversight.
Typical consequences:
- Missing periodic reports to authorities
- Failing to update licenses when changing scope, equipment or key staff
- Problems during inspections that can lead to warnings, fines or license suspension
How to avoid it:
- Treat licensing as the start of compliance, not the end.
- Implement internal procedures for:
- Tracking regulatory updates
- Monitoring license conditions and expiry dates
- Preparing for inspections and audits
- Appoint a person or team responsible for regulatory compliance, supported by external legal advisors where needed.
- Trying to “Do Everything Alone”
The mistake:
To save on cost, some investors try to manage complex healthcare licensing with non-specialist internal staff or generalist consultants who are not used to health-law projects.
Typical consequences:
- Repeated revisions of licensing dossiers
- Misunderstandings in communication with authorities
- Projects taking much longer and costing more than planned
How to avoid it:
- Be selective about your partners. For healthcare projects, use:
- Lawyers experienced in health law and foreign investment
- Architects and engineers who know healthcare facility standards
- Local clinicians and managers who understand daily operations
- View professional fees as an investment in risk reduction and speed, not a pure cost.
- How Healthcare Setup VN Helps Investors Avoid These Mistakes
At Healthcare Setup VN, backed by TTVN Legal, we have seen many of these mistakes first-hand – and helped investors fix or avoid them.
Our role is to act as a specialized legal and regulatory partner for foreign healthcare projects in Vietnam, by:
- Assessing feasibility and structuring the project correctly from the start (clinic vs hospital, 100% foreign vs joint venture);
- Designing a realistic licensing roadmap and timeline;
- Reviewing and advising on premises selection and technical suitability;
- Preparing and refining licensing dossiers so they are consistent and complete;
- Coordinating staff licensing, work permits and immigration for foreign professionals;
- Providing ongoing compliance support, including scope changes and expansions.
- Conclusion
Vietnam offers real opportunities for foreign healthcare investors – but success depends on more than a strong medical concept. It requires a clear understanding of how regulation works in practice, and a deliberate effort to avoid predictable mistakes.
By planning ahead, choosing the right partners and treating licensing as a strategic process rather than a formality, investors can:
- Reduce delays and uncertainty
- Protect their capital and reputation
- Bring high-quality healthcare services to Vietnamese patients sooner
If you are considering a healthcare investment project in Vietnam – or if you are already facing challenges with an ongoing application – the team at Healthcare Setup VN / TTVN Legal is ready to help you move forward with clarity and confidence.
Contact us to discuss your project and receive a tailored legal roadmap for your clinic or hospital in Vietnam.
