For years, Thailand and Singapore have dominated the conversation about private hospitals and medical tourism in Southeast Asia. But quietly – and increasingly not so quietly – Vietnam is emerging as a strategic hub for private hospitals in ASEAN.
A young and growing population, rising incomes, supportive (though strict) regulation and strong demand for quality care are turning Vietnam into one of the region’s most interesting hospital markets. For hospital groups, funds and healthcare operators looking for their next regional foothold, Vietnam is no longer optional: it is a market that demands serious attention.
This article explains why Vietnam is becoming a strategic hub for private hospitals in ASEAN, and what foreign investors should consider if they plan to build or acquire hospital assets in the country.
Vietnam’s Growing Role in ASEAN Healthcare
1. From under-served market to growth engine
Historically, many Vietnamese patients travelled abroad – to Thailand, Singapore, South Korea or further – for specialist or high-quality treatment. That trend hasn’t disappeared, but the picture is changing:
- Domestic capacity is rising as both public and private sectors invest in facilities and technology.
- Patient expectations are increasing; more people are willing to pay for quality care closer to home.
- Policy makers recognise the economic cost of outbound medical travel and want to keep more of that spending inside Vietnam.
As a result, Vietnam is transitioning from being primarily a “source” of outbound patients into a market where local and foreign investors can build destination hospitals that serve both domestic and regional demand.
2. Patient flows within ASEAN
Within ASEAN, Vietnam sits in a strategic position:
- A large domestic patient base – nearly 100 million people.
- Growing air connectivity with the rest of Southeast Asia and North Asia.
- Strong business links with Korea, Japan, Singapore and regional manufacturing hubs.
For foreign hospital groups that already operate in Thailand or Singapore, a presence in Vietnam can:
- Diversify their geographic footprint,
- Give access to new patient segments, and
- Create two-way referral pathways between Vietnam and existing flagship hospitals in the region.
Structural Advantages for Private Hospitals in Vietnam
1. Population, urbanisation and income trends
Vietnam’s structural story is compelling:
- A large, still relatively young population that is gradually aging, increasing demand for chronic-disease management, oncology, cardiology, orthopedics and rehabilitation.
- Rapid urbanisation, concentrating demand in major cities like Ho Chi Minh City, Hanoi, Da Nang, Hai Phong and several industrial zones.
- A growing middle class with higher expectations for service, safety and comfort – and the means to pay for it.
These demographics are not a short-term cycle; they form a multi-decade demand base for both clinics and hospitals.
2. Growing household spending on health
As incomes rise, households allocate more to health-related spending:
- Preventive check-ups and screening
- Elective procedures and higher-comfort care
- Chronic disease management and rehabilitation
- Premium maternity, paediatrics and women’s health
Public hospitals continue to play a central role, but capacity and experience constraints create space for private hospitals that can offer better comfort, shorter waiting times and more comprehensive services.
3. Government interest in private sector participation
Vietnam’s government recognises that public resources alone cannot meet rising demand. While regulation is strict, the overall direction is clear:
- Private sector participation is encouraged in many areas of healthcare delivery, particularly outpatient services and certain specialties.
- Authorities are open to foreign-invested hospitals, provided projects are well-structured and compliant.
- Policy discussions often focus on how to align private investment with public-health goals, not whether to allow it at all.
For investors who approach Vietnam with respect for its legal framework and health-policy objectives, this creates a hospitable – though demanding – environment.
Comparing Vietnam with Other ASEAN Hospital Markets
1. Vietnam vs Thailand
Thailand is a well-established medical tourism leader, with:
- Mature private hospital groups
- Strong international brand recognition
- A large base of foreign patients, particularly from the Middle East and neighbouring countries
However, for new foreign entrants, Thailand can be highly competitive and more saturated in certain urban areas.
Vietnam, by contrast:
- Has more under-served domestic demand, especially outside the biggest cities.
- Offers greater first-mover opportunities in certain specialties or regions.
- Is still shaping its private hospital landscape, leaving more room for new brands to define themselves.
2. Vietnam vs Singapore
Singapore is a regional reference point for:
- High-end tertiary care and complex procedures
- Tight regulation and high clinical standards
- Premium medical tourism
But it also has:
- Very high operating costs (real estate, salaries, utilities)
- A smaller domestic population
- A market more suitable for ultra-specialised centres or corporate/executive care
Vietnam offers:
- Lower operating costs relative to revenue potential
- A much larger domestic market
- Room for mid- to upper-tier private hospitals that can combine international standards with locally adapted pricing.
3. Competitive positioning for regional hospital brands
A hospital group with assets in Thailand or Singapore can use Vietnam as:
- A volume and growth engine – serving large numbers of patients for common conditions and elective treatments.
- A feeder and referral platform – sending highly complex cases or rare procedures to flagship hospitals elsewhere.
- A regional brand-building base – showing commitment to the broader ASEAN market, not only tourist or ultra-premium segments.
Legal and Regulatory Foundations for Hospital Investment
1. Foreign ownership and legal structures
Vietnam allows foreign investors to participate in hospital projects, often through:
- 100% foreign-owned hospitals (where permitted),
- Joint ventures with local partners, or
- Management and technical-cooperation arrangements with existing facilities.
However, the hospital regulatory framework is more complex and demanding than for clinics. Investors must carefully design:
- The investment project and capital structure;
- The legal entity and shareholding;
- The hospital operating licence application, including service scope, department structure, bed numbers, premises and equipment.
If you are still comparing options, it is essential to understand the differences between opening a clinic and opening a hospital in Vietnam, as the jump in capital and compliance is substantial.
2. Hospital licensing vs clinic licensing
Compared to clinics, hospitals face:
- More extensive requirements on land, building standards and fire safety;
- A broader list of departments and diagnostic/treatment areas that must meet specific technical criteria;
- More stringent expectations on clinical governance, infection control and emergency preparedness;
- More detailed staffing requirements, including ratios of doctors, nurses and technical staff.
This means that hospital projects must integrate legal, architectural, clinical and financial planning from the earliest stages, rather than treating licensing as something to address after construction.
Strategic Models for Foreign Private Hospitals in Vietnam
1. Flagship tertiary hospital
One model is to build a single flagship hospital in a major city such as Ho Chi Minh City or Hanoi, positioned as:
- A comprehensive tertiary-care facility
- A centre of excellence in selected specialties (e.g. oncology, cardiology, orthopaedics, women’s and children’s health)
- The core of a future network of satellite clinics or smaller hospitals
This model:
- Requires high capital and a multi-year development cycle
- Is best suited to investors with strong hospital-operating experience
- Can be combined with international accreditation and medical tourism positioning
2. Network of satellite clinics feeding a central hospital
Another approach is to build an integrated network:
- Outpatient clinics in key districts and secondary cities
- A central hospital that provides higher-acuity and inpatient services
- Coordinated IT and referral pathways that keep patients within the network
This structure allows investors to:
- Start with clinics to test the market and build brand
- Phase hospital investment over time
- Capture patient journeys across primary, secondary and tertiary care
For this model, it is useful to first master the clinic setup process (see your guide on opening a foreign-invested clinic in Vietnam) and then scale up.
3. Joint ventures and brownfield acquisitions
Some investors may prefer to partner with:
- Existing Vietnamese hospitals,
- Local health groups, or
- Non-health corporates that wish to enter the sector.
Benefits can include:
- Immediate access to premises and licences
- Existing patient base and local staff
- Shared capital burden
However, joint ventures also raise critical questions:
- How are control, governance and brand shared?
- How will regulatory compliance be managed in practice?
- What is the plan for upgrading facilities, processes and standards?
Thorough due diligence and clear shareholder agreements are essential.
Key Success Factors for Building a Regional Hub in Vietnam
1. Clinical quality and international standards
To stand out in a fast-evolving market, foreign-invested hospitals must deliver visible, consistent clinical quality. This may involve:
- Implementing international clinical protocols adapted to Vietnam
- Investing in training and continuing medical education for local staff
- Seeking international accreditation where appropriate (e.g. JCI, other recognised bodies)
Quality is not just about technology or equipment – it is about systems, culture and governance.
2. Talent strategy, including foreign specialists
Talent is arguably the most important asset for any hospital. In Vietnam, a successful talent strategy will:
- Identify and attract strong local medical leaders;
- Define a clear, compliant role for foreign doctors and specialists;
- Address language and cultural differences in patient communication;
- Offer attractive career paths and working conditions.
Because foreign doctors must satisfy specific licensing, work permit and language requirements, you should align your hospital plan with a clear understanding of the requirements for foreign doctors working in Vietnam.
3. Brand, patient experience and medical tourism
Vietnam’s private hospitals compete not just on clinical outcomes, but also on brand and patient experience:
- Modern, welcoming facilities
- Efficient appointment and admission processes
- Clear communication of diagnoses, treatment plans and costs
- Post-discharge follow-up and digital touchpoints
Hospitals targeting regional patients (from ASEAN or further afield) will also need:
- Multi-language capabilities
- Links with international insurance companies and assistance networks
- Partnerships with hotels, travel providers or corporate clients
Vietnam’s location and cost structure make it an attractive place to combine domestic and inbound patient strategies
Turning Interest into an Actionable Vietnam Strategy
Vietnam’s rise as a strategic hub for private hospitals in ASEAN is supported by demographics, economics and policy trends. But turning that macro story into a successful hospital project requires careful design.
If you are considering Vietnam, practical next steps include:
- Market and legal feasibility
- Validate your assumptions about demand, pricing and competition.
- Test whether your preferred service mix aligns with Vietnamese regulations.
- Choose an entry model
- Compare a hospital-first strategy with clinic-first or partnership options.
- Read across content such as “entry strategies for foreign healthcare investors in Vietnam” to see different paths mapped out.
- Build a regulatory roadmap
- Map the sequence from investment registration to hospital licensing.
- Integrate architectural design, equipment procurement and staffing into that roadmap rather than treating them as separate tracks.
- Align capital and risk appetite
- Use structured guidance like “budget planning for foreign clinics and hospitals in Vietnam” to test whether your capital plan is realistic.
- Consider staging investments, starting with outpatient services or smaller facilities where appropriate.
- Treat compliance as a long-term partnership with the regulator
- Design governance, documentation and quality systems to meet – and exceed – minimum standards.
- View inspections and reporting as part of an ongoing relationship, not ad hoc obstacles.
For hospital groups, funds and healthcare operators with regional ambitions, Vietnam is no longer a peripheral market. It is becoming a central part of the ASEAN healthcare map – and for those who move thoughtfully and strategically, it offers a rare combination of scale, growth and long-term relevance.
