Mergers and Acquisitions
The medical market in the South of Vietnam is becoming increasingly fierce competition, we try to score the main characters:
• The Hoan My Medical Group with more than 20 years of operation has scale up to 14 hospitals and 6 clinics with 3,407 beds. From the initial four self-built hospitals, by using M&A activities the Group has become the largest private healthcare system in Vietnam and seems to be M&A activities of the Group has not stopped here yet. With the issuance of 2.300 billion bonds arranged by Standard Charter Bank on 08/10/2018 and guaranteed by CGIF, Hoan My pretends to have a new development strategy which is not easy to guess.
• The Xuyen A hospital system has just entered the medical market since 2012 but has proven its strong rise. With two large hospitals including nearly 2,000 beds have been put into operation, Duc Hoa Long An hospital has 1,000 beds were started in May 2018 and Tay Ninh Hospital Transnistria. Started in October 2018. With a total of 4,500 standardized beds, the Trans-Asian system has proven to be a professional, organic, and well-developed development strategy and will soon become the leading private healthcare system despite the fierce competition from the rest of the private health system. It can be predicted that, while not fully utilizing its available advantages, Xuyen A Hospital system will not be involved in M&A activities to expand its scale but we may feel the explosion of scale and the impact of the Xuyen A system on health care services in the south of Vietnam as they enter the M&A market.
• The Tam Tri Hospital system of Dr. Nguyen Huu Tung, former founder of Hoan My Medical Group, with four hospitals with a total of 600 beds is currently in the process of closing of the transfer of over 30 % share for VOF (VinaCapital). Having to do M&A again shows how much problem this system has in the business, financial restructuring and future path is still unknown.
Thus, all of private health systems of Vietnam sooner or later, before or after, in order to develop and expand their business, will inevitably have to resort to M&A activities.
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