American Fund invests in Xuyen A Hospital

Warburg Pincus, a fund that has invested a total of $2 billion in Vietnam, announced its investment in the Xuyen A General Hospital System.

The two sides signed a joint venture cooperation agreement on the morning of April 15 and the specific investment amount was not disclosed. Previously in 2023, Warburg Pincus assessed the Xuyen A General Hospital System as a potential investment project.

Xuyen A Hospital Investment Joint Stock Company was established in 2012 and began receiving patients in May 2014. This is the unit with the largest private general hospital system in the South, with 4 hospitals in Ho Chi Minh City, Vinh Long, Long An, Tay Ninh. Each hospital has the capacity to expand to receive up to 1,000 inpatient beds, along with 20 specialties.

Dr. Nguyen Van Chau, Founder and General Director of Xuyen A General Hospital System, said that capital from Warburg Pincus will help expand the scale of investment, improve the quality of medical staff and patient care.

Xuyen A General Hospital in Cu Chi district, Ho Chi Minh City. Photo provided by the company — Xuyen A General Hospital in Cu Chi district, Ho Chi Minh City. Photo *provided by the company*

On this occasion, Xuyen A also announced the establishment of a high-tech Cancer Treatment Center, becoming one of the few private hospital systems in Ho Chi Minh City capable of providing full cancer-related treatment services including chemotherapy, radiotherapy and cancer surgery.

In addition, the system is implementing two projects, the Tay Nguyen Xuyen A General Hospital and the Gia Nghia Xuyen A Hospital, expected to come into operation in early 2025 with a total scale of nearly 1,000 beds.

Warburg Pincus is a growth investor with over $83 billion in assets under management. Entering the Vietnamese market in 2013, the company has invested a total of over $2 billion in Vincom Retail, MoMo, Techcombank, BW Industrial, and Lodgis.

Headquartered in New York (USA), this company also has more than 50 years of experience investing in the healthcare industry. They have invested in Summit Health - the largest outpatient multidisciplinary group in the US and United Family - a high-quality private international hospital and clinic network in China.

Mr. Saurabh Agarwal, Managing Director and Head of Private Equity for Southeast Asia at Warburg Pincus, has the ambition to make Xuyen A Hospital System one of the leading private hospital systems in Vietnam. "We believe that the private healthcare sector in Vietnam has a lot of potential for outstanding development," he added.

With a population of 100 million, rising incomes and a rising aging population, investment in healthcare and healthcare is increasingly attracting foreign capital. Last year, this was one of the most active mergers and acquisitions (M&A) sectors, both in terms of volume and value.

According to BDA Partners’ M&A Market Report, there were 15 transactions last year, with a total announced value of nearly $765 million. The average deal was worth about $100 million. Notable deals included Thomson Medical Group (Singapore) acquiring FV Hospital for $381.4 million and CVC Capital acquiring Phuong Chau International Hospital for $116 million.

Di Tung

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