Healthcare Industry in Vietnam: Market Trends, Hospital Investments, and System Dynamics

Vietnam’s healthcare sector is expanding as demographic change, rising demand and policy reform reshape how care is delivered. As of June 2026, the country had around 450 private hospitals and more than 50,000 private clinics, yet private providers accounted for only about 6% of hospital beds nationwide. This gap continues to create room for investment in hospital capacity, specialist care, medical equipment and supporting healthcare services.

Policy is moving in the same direction. Vietnam has set a 95.98% health insurance coverage target for 2026, with universal coverage targeted by 2030. The Government is also implementing a national healthcare and population programme with VND88.63 trillion allocated for 2026–2030, supporting priorities such as primary care, disease prevention and healthcare infrastructure.

For healthcare businesses and investors, these developments are opening opportunities across private healthcare, digital health, pharmaceuticals, medical devices and specialist services, while also increasing the need to understand sector-specific licensing and operating requirements. This guide examines the healthcare industry in Vietnam in 2026, including its system structure, key growth drivers, investment and M&A opportunities, and the main challenges businesses should consider when entering or expanding in the market.

Vietnam's Healthcare Industry Overview

Vietnam has structured a hierarchical healthcare system that extends from regional and rural areas to nationwide. Over the past 3 decades, the country has expanded universal health insurance coverage and reduced healthcare spending. This dedication is apparent in the nation's focus on preventive medicine and healthcare promotion.

Healthcare System in Vietnam

The health system operates across four administrative levels: central, provincial, district, and commune. Policy-making typically originates from the central level, with the MOH spearheading evidence-based agendas. Approved policies are executed by the MOH and local authorities, monitored by relevant departments, and overseen by the Social Affairs Committee of the National Assembly.

• National Level: The Ministry of Health (MoH) administers the healthcare sector, managing a network of hospitals, research, and academic institutions, with other ministries operating their hospital systems.

• Provincial Level: Provinces and central-affiliated cities run several hospitals, medical centers, and medical colleges with programmes in medicine, nursing, and pharmacy.

• District Level: District health centers provide medical and preventative care services.

• Commune Level: Commune health stations are dedicated to primary healthcare services for local communities

Healthcare Strategy 2025 - 2030

Vietnam’s 2025–2030 hospital network plan is anchored in a robust legal framework, ensuring transparency, enforceability, and practical implementation. This strategy is designed not only to guide healthcare infrastructure development but also to enable sustainable, innovation-driven growth across the national health system.

Key Legal Foundations

Law on Medical Examination and Treatment (No. 15/2023/QH15) – Effective from January 2024, this pivotal law expands service delivery models (e.g., mobile and telehealth), decentralises licensing to provincial authorities, and grants public hospitals financial autonomy. It also enforces service price disclosure, professional capacity standards, and ongoing staff training.

• Decree No. 96/2023/NĐ-CP – Clarifies healthcare decentralisation, financial mechanisms, and government roles at different administrative levels.

• Resolution No. 20-NQ/TW (2017) – Sets a long-term vision for improving public health through investment diversification and healthcare socialisation.

National Digital Transformation Strategy (Decision No. 749/QĐ-TTg/2020) – Lays the foundation for smart hospitals, EHRs, and AI-driven diagnostics.

Core Policy Priorities

• Greater autonomy for hospitals: Enhanced control over finance, human resources, and structure, especially at the provincial and district levels.

• Encouraging private sector involvement: Through PPPs, joint ventures, and equitisation, supported by national policy resolutions.

• Enhancing quality of care: Nationwide standards, linked with recruitment and training, backed by Directive 06/CT-BYT.

• Accelerating digital transformation: Broad adoption of IT in operations, patient records, and disease surveillance, with key initiatives like EHR, EMR, and paperless hospitals.

Key Growth Drivers of Healthcare Industry in Vietnam

• High Demand for Foreign Medical Staff

In Vietnam, there is a growing trend of hiring foreign medical doctors due to disparities in healthcare distribution. Only 30% of the population resides in cities. Most medical professionals are interested in serving the urban areas, which leaves the rural regions underserved. Additionally, government hospital doctors receive low pay and often switch between public and private sectors, hindering skill development. 

Despite the demand for physicians, expanding the local workforce is challenging due to lengthy training requirements. Consequently, this country increasingly relies on foreign doctors to address healthcare gaps, emphasising the importance of balancing local talent development with international expertise.

• Increasing demand for high-quality healthcare services

Vietnam’s healthcare sector is poised for significant expansion, fueled by a population of more than 100 million and shifting demographics. The country is seeing a marked rise in both its aging population and burgeoning middle class—expected to double from 13% in 2023 to 26% by 2026. This evolution is driving increased demand for quality healthcare services, particularly in general medical care and long-term treatment, as health consciousness grows in the post-pandemic era.

• Expansion of middle-class population

As Vietnam progresses toward upper-middle-income status by 2035, rising disposable incomes are reshaping consumer expectations. More individuals are willing to invest in premium healthcare options, while capacity limitations in public hospitals continue to push demand toward the private sector.

• Government policies supporting private and foreign investments

There are no foreign ownership caps for hospitals and clinics, and investors can benefit from incentives such as tax exemptions, reduced import duties, and preferential land use policies. However, restrictions remain in place for foreign involvement in pharmaceutical distribution, reflecting a cautious but strategic approach to sector liberalisation.

M&A Investment Opportunities 

Vietnam’s healthcare landscape is undergoing rapid transformation, creating attractive opportunities for mergers and acquisitions across several high-growth segments. Investors are showing strong interest in private hospitals, digital health platforms, and pharmaceutical manufacturing, each offering scalable potential amid rising healthcare demand and favorable policy shifts.

Private Hospitals and Specialty Clinics
Private healthcare facilities, especially those specialising in ophthalmology, oncology, and cardiology, are emerging as key M&A targets. As of October 2025, Vietnam had 2,106 registered hospitals, including 406 private hospitals, equivalent to around 19.3% of the total. Private operators accounted for only about 6% of hospital beds, leaving considerable room for expansion. Under Vietnam’s national healthcare network plan, private hospital beds are targeted to reach 15% of total capacity by 2030 and 25% by 2050.

Digital Health and Telemedicine
Vietnam’s digital health sector is gaining momentum following regulatory reforms that officially authorise telemedicine. Investments in electronic medical records (EMRs), connected health systems and AI-supported technologies. Investment is growing across hospital software, healthcare data platforms, remote monitoring and digital diagnostic solutions. The market is estimated at around US$2.76 billion in 2026 and is projected to reach approximately US$5.66 billion by 2031, representing annual growth of about 15.4%.

Medical Equipment and Pharmaceuticals
Vietnam permits 100% foreign ownership in pharmaceutical manufacturing, positioning it as a regional hub for high-tech medical production. Although foreign participation in pharmaceutical distribution remains restricted, the development of dedicated pharmaceutical industrial zones such as the 338-hectare Le Minh Xuan 2 Industrial Park in Ho Chi Minh City signals a strong commitment to attracting strategic investment in advanced healthcare and life sciences infrastructure.

Vietnam's Healthcare Industry Challenges

Below are some factors that are expected to limit the growth of the connected healthcare market in Vietnam.

Challenges in Workforce Training and Retention

The journey of building and sustaining this healthcare workforce faces hurdles. The training and retention of medical staff pose distinct challenges and opportunities.

• Brain Drain: Skilled healthcare professionals emigrating for better opportunities abroad contribute to talent shortages domestically, impacting care quality.

• Training Opportunities: Ensuring a steady supply of well-trained medical professionals demands an emphasis on education and skill development.

• Motivation and Retention: Sustaining a motivated workforce requires adequate compensation, career advancement opportunities, and a supportive work environment.

Shortage of International Medical Practitioners

Foreign medical practitioners play a vital role in Vietnam’s healthcare system to enhance the local workforce. These experts bring specialised skills and knowledge that contribute to advanced medical practices and research. Their presence enriches the sector with diversity and expertise. However, collaborations with foreign medical institutions and international organisations facilitate knowledge exchange.

Integrating Local and Foreign Contributors

Foreign doctors bring the necessary skills, but finding the right balance with our local doctors is essential. It is necessary to focus on training and helping doctors grow. This way, Vietnam's healthcare system can keep improving, and the doctors will better understand the needs of our community.

Market Restraints

In Vietnam, certain regulatory obstacles, especially regarding data privacy and security, still need to be addressed. This complexity can pose challenges to the implementation of connected healthcare solutions that depend on sensitive patient data.

While knowledge about connected healthcare solutions is growing, a significant portion of the population remains unaware of this technology. This lack of awareness could restrict adoption rates and slow down market expansion.

Even with widespread smartphone use, certain areas in Vietnam may face limited internet access. This limitation can pose challenges in consistently providing connected healthcare services, particularly in rural areas.

How Ascentium Vietnam Can Assist?

Vietnam’s healthcare market offers strong potential, but entering and operating in the sector requires careful planning around licensing, workforce requirements, regulatory compliance and day-to-day business operations. For healthcare companies and investors, getting these foundations right from the start can help reduce delays, manage risk and support longer-term growth.

At Ascentium Vietnam, we support healthcare businesses across the full operating lifecycle. Our team can assist with business setup and licensing, tax compliance, payroll and ongoing corporate governance, as well as medical device import requirements, expatriate tax matters and HR support for clinical and administrative teams. With local knowledge of Vietnam’s regulatory and operating environment, we help our clients establish the right structure, stay compliant and manage their operations with greater clarity.

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