Vietnam’s pharmaceutical industry sees increase in major mergers and acquisitions

Vietnam’s pharmaceutical sector is experiencing a surge in mergers and acquisitions (M&A) activity as foreign investors bring strong financial resources and technological advantages to the country. This influx of foreign investment helps local pharmaceutical companies improve their competitiveness and expand their export markets. According to PwC’s Global M&A Industry Trends: 2025 Outlook, CEOs worldwide are optimistic about engaging in M&A deals, with a high percentage planning to pursue M&A transactions in the healthcare and pharmaceutical sectors over the next few years.

In Vietnam, the healthcare sector is expected to see significant M&A activity in 2025, driven by a growing middle class and increased demand for quality medical services. Pharmaceutical companies, private hospitals, and specialized medical facilities focusing on fields like ophthalmology and oncology are likely to be the main targets for M&A transactions. Ong Tiong Hooi, Partner and Transaction Services Leader at PwC Vietnam, notes the global trend of rising M&A activity, driven by economic improvements and strategic deal-making, which is also evident in Vietnam.

The influx of foreign investment is fueling a boom in M&A deals in Vietnam’s healthcare and pharmaceutical sectors. In 2023, healthcare industry M&A transactions totaled 508 million USD, making it the third most active sector for M&A following finance and real estate. Foreign investors were responsible for most of the acquisitions, with notable deals including Thomson Medical Group’s acquisition of FV Hospital and Dongwha Pharm’s purchase of the Trung Son pharmacy chain.

Recently, Mekong Capital’s Mekong Enterprise Fund IV invested in TNH Hospital Group JSC, highlighting growing foreign interest in Vietnam’s private healthcare sector. TNH Hospital Group JSC, a leading private hospital system in Vietnam, has attracted significant foreign investment from funds like Blooming Earth and Access S.A., SICAV-SIF – Asia Top Picks. Similarly, Binh Dinh Pharmaceutical and Medical Equipment JSC has seen increased interest from foreign investors, with Swiss-based KWE Beteiligungen AG acquiring a larger stake in the company.

Many leading pharmaceutical producers in Vietnam, such as Hau Giang Pharma, Domesco, Traphaco, and Pymepharco, have foreign strategic shareholders. Some of these shareholders have even gained controlling stakes or completed full acquisitions of these companies. The vibrant M&A activity in Vietnam’s pharmaceutical sector is a testament to the attractiveness of the market to foreign investors seeking strategic opportunities for growth and expansion.