Singapore-listed healthcare group Thomson Medical Group Limited (TMG) has agreed to acquire Vietnam's FV Hospital for up to US$381.4 million.

The move marks the country's largest healthcare transaction to date and Southeast Asia's largest healthcare acquisition since 2020.

A seven-floor structure is being added to the existing FV Hospital building as part of its current expansion. Photo: FV Hospital

"The acquisition of FV Hospital deepens our commitment to the Southeast Asian healthcare sector, expanding our Group’s presence across three of the region’s most important geographies in healthcare. FV Hospital provides a strategic foothold for us in Vietnam and a gateway to grow and focus on future investments in this fast-growing market," said Kiat Lim, Executive Vice-Chairman of TMG, who first initiated discussions with FV Hospital about six months ago.

Under the terms of the sale and purchase agreement, TMG will acquire 100% of Far East Medical Vietnam Limited (FEMV), which operates a range of healthcare facilities in Vietnam, including the multi-disciplinary tertiary FV Hospital and a network of primary and specialist clinics.

Established in 2003, FV Hospital has nearly 200 operating beds. It is currently undergoing an expansion that will involve the addition of a seven-story structure to the existing FV Hospital building. Quadria Capital, Asia's leading private healthcare investor, also invested in FV Hospital in 2017.

The deal highlights the growing significance of Vietnam’s burgeoning healthcare market and TMG’s continued commitment to expand its footprint in the region. 

Vietnam’s growing private healthcare market has been driven by favorable macroeconomic tailwinds with significant growth potential in healthcare expenditure.  The country is one of the fastest-growing economies in Southeast Asia, fueled by strong inflows of foreign direct investment due to its geographic and competitive advantages, which underpin the strong growth in healthcare spending.