Vietnam’s M&A Market in 2025: Healthcare and Education Sectors Set to Thrive

March 6, 2025 Posted by Vietnam Briefing Written by Giulia Interesselia Interesse Reading Time: 6 minutes

Vietnam is set to become a key M&A hub in 2025, driven by booming healthcare and education sectors and fueled by growing demand, government policies, and foreign investment. Opportunities in digital health, private hospitals, K-12 education, and EdTech will dominate investor interest.

Vietnam is emerging as a hotspot for mergers and acquisitions (M&A), particularly in the healthcare and education sectors. According to PwC’s Global M&A Industry Trends: 2025 Outlook, rising demand for high-quality services, a growing middle class, and favorable government policies are driving investor interest in these industries.

Grow Your Presence in Asia with Complete Market Entry and Cross-Regional Support

Private hospitals and specialty clinics, such as ophthalmology and oncology centers, are expected to be key targets in healthcare, while Vietnam’s open-door policy on foreign investment in education is set to attract international capital. As businesses and investors seek opportunities in Vietnam, understanding the market dynamics and potential challenges will be crucial for making informed decisions.

The rising M&A activity in Vietnam’s healthcare sector

Key drivers of growth

Vietnam’s healthcare sector is experiencing a surge in mergers and acquisitions, driven by several key factors:

Increasing demand for high-quality healthcare services: With a population of approximately 100 million, Vietnam is undergoing a demographic shift marked by an aging population and a rapidly expanding middle class. The proportion of middle-class citizens is expected to grow from 13 percent in 2023 to 26 percent by 2026, increasing demand for better healthcare services. Additionally, rising health awareness, accelerated by the COVID-19 pandemic, has led to greater demand for general medical and long-term care services.
Expanding middle class with higher healthcare expectations: As Vietnam strives to achieve upper-middle-income status by 2035, disposable incomes are rising, and more people are willing to pay for premium healthcare. However, the public hospital system remains overcrowded, further driving patients toward private healthcare providers.
Government policies supporting private and foreign investments: The Vietnamese government actively encourages private sector participation in healthcare. There is no foreign ownership cap on hospitals and clinics, and the private healthcare sector benefits from investment incentives, including tax breaks, reduced import duties, and land use fee exemptions. However, foreign investment in pharmaceutical distribution remains restricted.

Key areas of investment

As Vietnam’s healthcare sector undergoes rapid transformation, several segments are emerging as prime opportunities for mergers and acquisitions. Investors are particularly drawn to private hospitals, digital health solutions, and pharmaceutical companies, all of which are poised for significant growth.

Private hospitals and specialty clinics: Private hospitals and specialized healthcare centers—particularly those focused on ophthalmology, oncology, and cardiology—are attractive M&A targets. Currently, only 23.4 percent of Vietnam’s hospitals are privately owned, and the government aims to increase private hospital bed capacity from 6 percent to 15 percent by 2030 and 25 percent by 2050.
Digital health solutions and telemedicine: With recent regulatory changes explicitly allowing the use of telemedicine, Vietnam’s digital health market is poised for substantial growth. The implementation of electronic medical records and centralized health data systems is creating new opportunities for investment in digital health solutions. The market is expected to reach US$905.8 million in revenue by 2024, with a projected annual growth rate of 7.71 percent through 2028.
Medical equipment and pharmaceutical companies: Vietnam allows 100 percent foreign ownership in pharmaceutical manufacturing, though restrictions remain on pharmaceutical distribution. The government is also establishing pharmaceutical industrial parks, such as the 338-hectare Le Minh Xuan 2 Industrial Park in Ho Chi Minh City, to attract investment in high-tech medical and pharmaceutical products.

Opportunities and challenges for investors

Vietnam’s healthcare sector presents both promising opportunities and notable challenges for investors. The combination of an expanding middle class, an aging population, and increased awareness of chronic diseases is driving long-term demand for healthcare services. Notable M&A transactions, such as Thomson Medical Group’s US$381.4 million acquisition of FV Hospital and CVC Capital’s US$116 million purchase of Phuong Chau International Hospital, demonstrate investor confidence in Vietnam’s healthcare market.

Leverage our business intelligence services to optimize your strategy with our expert analysis and stay ahead in Asia’s competitive markets.

While Vietnam is welcoming foreign investment, regulatory complexities remain. Investment projects must comply with specific capital requirements—such as $20 million for hospitals, US$2 million for general clinics, and US$200,000 for specialized treatment centers. Additionally, foreign investors must navigate licensing procedures and evolving healthcare regulations.

The healthcare market is becoming increasingly competitive, with both domestic and international investors vying for market share. Leading global healthcare providers are forming strategic partnerships with Vietnamese institutions, such as Raffles Medical Group’s collaboration with American International Hospital. Investors must differentiate themselves through technological innovation, service quality, and strategic alliances.

The M&A boom in Vietnam’s education sector

Why education is a hot investment target

Vietnam’s education sector has emerged as a key focus for M&A activity, driven by several compelling factors:

Government encouragement of foreign investments: The Vietnamese government actively supports foreign investment in education, offering a favorable regulatory environment that allows for 100 percent foreign ownership of educational institutions. This makes market entry more accessible and acquisitions a more attractive alternative to greenfield investments, which often involve complex licensing and high startup costs.
No cap on foreign ownership in educational institutions: Unlike in other industries, foreign investors face no restrictions on ownership in the education sector. This openness has spurred a wave of M&A transactions, with private equity firms and multinational education providers increasingly acquiring stakes in Vietnamese schools and universities.
Rising demand for private and international education: Vietnam’s expanding middle class is placing greater emphasis on quality education, leading to increased demand for private K-12 schools, international curricula, and specialized training institutions. The growing preference for international education has attracted global investors looking to capitalize on this high-growth market.

Key investment segments

Investment activity in Vietnam’s education sector is concentrated in several high-potential areas:

K-12 international schools: The demand for private K-12 education, particularly schools offering international curricula, has surged. Parents are increasingly seeking globally recognized education models, driving M&A interest in this segment. Recent deals include Nutifood’s investment in Anne Hill International School and KKR-backed Taylor’s Education Group’s reported interest in acquiring Vietnam-based Koala House.
Vocational training and higher education institutions: Strategic investments in higher education and vocational training institutions are reshaping Vietnam’s educational landscape. These investments aim to improve infrastructure, academic quality, and employability outcomes for graduates. As competition for skilled labor intensifies, vocational training institutions are becoming a key focus for investors looking to bridge the talent gap in various industries.
EdTech and online learning platforms: The digital transformation of education is accelerating in Vietnam, with EdTech emerging as a lucrative investment area. The Vietnam Innovation & Tech Report 2024 highlighted a 107 percent year-on-year increase in EdTech investment, making it the second-most funded sector after healthcare. Notable deals include Vuihoc’s acquisition of The IELTS Workshop and Excelsior Capital Vietnam’s investment in Kapla Education. Investors are particularly interested in platforms specializing in online grading tools, remote learning, and early childhood education innovations.

Challenges and potential risks

Despite its attractive growth potential, the education sector in Vietnam presents several challenges for investors. While Vietnam’s legal framework supports foreign investment in education, investors must navigate licensing requirements, curriculum approvals, and operational compliance measures. These regulatory complexities can slow down deal execution and require careful structuring of M&A transactions.

We specialize in dedicated and cross-functional M&A project support.

Moreover, many local education providers have strong facilities and established reputations but struggle with financial and operational inefficiencies. Investors must carefully manage cultural and operational integration to align with Vietnamese educational preferences while maintaining global standards. Partnering with local institutions can be an effective strategy for market entry and expansion.

Lastly, Vietnam’s education sector is also becoming increasingly competitive, with both domestic and international investors vying for market share. Private equity firms, venture capital funds, and multinational education groups are actively acquiring local providers to expand their regional platforms. This heightened competition makes differentiation through academic excellence, technology adoption, and strategic partnerships crucial for long-term success.

2025 outlook and strategic considerations

All in all, Vietnam’s M&A landscape is set to experience significant growth in 2025, following a notable recovery in 2024. After a quieter 2023, the market showed a strong rebound with a 46 percent increase in transaction value during the first nine months of 2024, reaching US$3.2 billion. This surge is expected to continue into 2025, driven by both domestic and foreign investor activity.

Government reforms, including tax incentives for high-tech industries and efforts to streamline foreign investment processes, will likely spur investment in technology and tech-enabled services. As the real estate market stabilizes with clearer land laws and a more transparent corporate bond market, it will also attract more investments.

Foreign investors, particularly from the UAE, China, Japan, and the US, are expected to become even more competitive, bringing substantial capital, expertise, and technology. This will fuel more competitive bidding in high-value sectors such as energy, logistics, and infrastructure. Japanese firms are predicted to maintain a strong presence, focusing on real estate, while Chinese investors may increasingly explore the financial services sector.

Overall, 2025 promises to be a landmark year for Vietnam’s M&A sector, with robust activity across various industries and a more dynamic environment for both domestic and international players.

About Us

Vietnam Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, China, and India. For editorial matters, contact us here and for a complimentary subscription to our products, please click here. For assistance with investments into Vietnam, please contact us at vietnam@dezshira.com or visit us at www.dezshira.com.

Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.