Vietnamese dental clinic chain Parkway has wrapped up an investment of about $5 million from 24hmoney.
The fresh funds will be used to fuel Parkway's business expansion and facility upgrade. The dental clinic chain will also receive technology support from 24hmoney.
Founded in 2017, Parkway has 11 dental clinics in five localities in Vietnam. The company plans to put another six dental clinics into operation by the first quarter of 2024.
"This is a strategic fundraising round for Parkway. We hope that the tie-up with 24hmoney will help improve the standards of dental care, scale up the system, and unlock the potential of dental tourism in Vietnam," a representative of Parkway said.
24hmoney, which is owned by Vietnamese entrepreneur Phan Minh Tam, has made successful investments in the hair salon chain 30Shine and the human resources provider Sieu Viet.
Tam said, "24hmoney wants to invest in businesses with growth potential and good positions in their industries. Along with financial support, we also share the know-how to support businesses in strategy building, operations, and risk management."
According to a report by healthcare-focused market research firm Insights10, Vietnam's dental care market was valued at $6.59 billion in 2022 and is estimated to expand at a compound annual growth rate of 10.93 per cent from 2022 to 2030 and will reach $15.12 billion in 2030.
The market is expected to grow in the future, driven by factors such as increasing awareness of oral health, a rise in the middle class with higher disposable incomes, and the government's efforts to improve access to healthcare.
"Vietnam's dental care market is also being boosted by an influx of foreign investment and the development of new technologies and methods. Additionally, the dental tourism industry in Vietnam is rapidly booming, as patients from other countries are drawn to the country's lower costs and high-quality services," the report said.
Vietnam's dental market has recorded some notable deals over the past few years. Accordingly, Kim Dental, Vietnam’s largest private dental care platform, raised $24 million in a Series B round led by ABC World Asia. Meanwhile, South Korea’s Sun Medical Center was bought out by Nha Khoa My.
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Growing dental hygiene, coupled with a surge in foreign dental tourists, is expected to drive the growth of Vietnam's dental services industry, which will reach a revenue of $435 million by 2023, according to a report by Ken Research.
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ABC World Asia, the Singapore-based private equity fund focused on impact investing across Asia, today announced that it has led a $24 million Series B round in Kim Dental – one of Vietnam’s leading dental system operators – alongside existing backer Aura Private Equity and others. The new capital will further support Kim Dental with expanding the delivery of affordable and reliable oral healthcare services across Vietnam.
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Vietnam’s healthcare and pharmacy chains are increasingly getting new funds to expand their operations in local market, thereby securing access and availability of medical supplies and drugs for locals. However, concerns over adequate human resources in the sector dampen the bright prospects and could cause supply issues.