VinaCapital Vietnam Opportunity Fund (VOF) has announced an investment of US$26.7 million in Thu Cuc International General Hospital (TCI), one of the first private healthcare medical companies in Hanoi.
TCI was established in 2011 by chairwoman Nguyen Thu Cuc. It now employs more than 1,400 staff, including over 230 doctors, many of them with 20 years or more experience at leading national hospitals. TCI’s nine departments encompass twelve medical specialties.
In early 2019, a new 5,000 square meter general clinic was opened to handle outpatient visits and corporate health checks. In early 2020, TCI completed a 10-storey extension to the main hospital to more than double its in-patient capacity.
Founder Cuc said that VinaCapital’s experience in this sector and partnership will be invaluable as the TCI looks to further expand the range and level of services they provide.
As Vietnam’s middle class continues to expand, consumers are seeking greater access to private medical services, which help relieve the burden on the public health sector, Chief Investment Officer at VinaCapital Andy Ho said.
As one of the first investors in the private health care industry in Vietnam with its investment in Hoan My in 2009, VOF has long recognized the enormous growth potential of this industry. TCI joins its existing health care portfolio of Thai Hoa in the Mekong Delta region, and Tam Tri Medical Corporation, which has hospitals in southern and central Vietnam.
This investment in TCI will bring the VOF portfolio exposure to the health care and pharmaceutical sector to 8% of net asset value (NAV), Ho added.
The first half of 2020 has been one of the most challenging investment and economic periods in the fund’s history. During the first six months of 2020, VOF has enjoyed a total return of 1.7%.
This performance compares well with the VN Index, which fell 13.8% and during this period of unparalleled challenges, supports the fund belief that having a diversified strategy of investing in Vietnamese public and private equities as well as structured investments, can deliver a superior risk-adjusted returns in the medium to longer term.
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