New Report Predicts M&A Growth in Health and Education
Mergers and acquisitions (M&A) in the health and education sectors are set to increase in Vietnam, according to a new report published last week.
The Global M&A Trends 2025 report highlights how policies promoting foreign investment and growing demand from middle-class consumers are behind this predicted growth in M&A transactions in the Vietnamese market. In particular, the report pinpoints private hospitals and specialized health facilities as prime targets for M&A deals, with private equity investors also showing interest in medical tech and digital health opportunities.
M&A Market Set to Rebound
The projected uptick in transactions follows stagnation in Vietnam’s M&A market in the post-pandemic period, mirroring global trends. On a positive note, the total value of M&A deals increased by 45.9 per cent in the first nine months of 2024 to reach USD 3.2 billion, with an average deal size of USD 56.3 million. The real estate, consumer staples, and industrial sectors accounted for 88 per cent of total deal value, according to the Vietnam M&A Forum held last November.
However, two large M&A transactions involving Vietnamese conglomerate Vingroup – worth around a combined USD 1.4 billion – accounted for about half of total transaction value. Without these deals, the M&A market in Vietnam would have seen a drop in value of 18 per cent over that period. Meanwhile, there was an 11.6 per cent decline in transaction volume over the first three quarters of 2024.
Calls for Reform in the Pharmaceutical Sector
Despite the positive mood music in the market driving this projected growth in M&A in the healthcare sector, pharmaceutical companies in Vietnam continue to advocate for changes to regulations to ease the administrative burden on business.
Speaking at a recent conference in Hanoi to discuss the upcoming draft decree guiding amendments and supplements to the revised Pharmacy Law, companies called for a review of regulations on managing drug imports without a circulation registration certificate; simplified customs procedures for drug import and export; and specific guidelines for the research, clinical trial, and licensing of innovative gene therapies.
The Amended Pharmacy Law
The amended Pharmacy Law, set to enter into force on 1 July, includes new regulations to modernise the pharmaceutical sector. It includes provisions to streamline and speed up the current time-consuming drug registration process, improve pricing transparency, regulate the growing pharmaceutical e-commerce market, and – of particular note for M&A transactions – increase market access for foreign-invested companies.
In fact, the amended law includes several new provisions which will be of interest to foreign enterprises. For instance, foreign companies importing drugs will now be allowed to import raw materials for manufacturers under an outsourcing agreement and to transport drugs under certain circumstances, streamlining logistics and increasing their role in the value chain.
Helping Foreign Investors Navigate M&A in Vietnam
APFL Partners is one of the leading international law firms in Vietnam, with particular expertise in structuring and advising on M&A transactions to help international clients enter, grow, and thrive in the Vietnamese market.
Our team has been recognised in international legal rankings for M&A. APFL Partners was awarded “Tier 2” for M&A in the latest IFLR 1,000 rankings and came “highly recommended” in Asia Law 2024 with individual accolades for Senior Counsel Nicolas Audier (“Elite Practitioner”) and Partner Etienne Laumonier (“Distinguished Practitioner”).
To find out more about M&A in Vietnam, or how our team can help foreign investors looking to enter the market, just contact our team on: contact@apflpartners.com
Disclaimer: This article and its content are for information only and are not given as legal or professional advice. they do not necessarily reflect all relevant legal provisions with respect to the subject matter. Readers should seek legal or professional advice before taking or refraining to take any action.
