Speaking at the 15th Vietnam M&A Forum 2023 themed Thriving Together that was organised by VIR on November 28, Dr. Melvin Heng, executive director and group CEO of Thomson Medical Group, emphasised the pivotal role of mergers and acquisitions (M&A) in this expansion.
|Dr. Melvin Heng, executive director and group CEO of Thomson Medical Group
“M&As remain a cornerstone strategy for us. It is a choice between starting from scratch or leveraging existing strengths,” Heng asserted.
For Thomson Medical Group, Singapore's leading provider of healthcare services for women and children, M&As are not just a business manoeuvre but a testament to their confidence in the Vietnamese market, the professionalism of its medical practitioners, and a belief in the robustness of local mechanisms.
“In Vietnam, and elsewhere, we are not just investing in businesses but in trust and expertise,” he explained.
In July, Thomson Medical Group completed a landmark acquisition, securing a 100 per cent stake in Far East Medical Vietnam Ltd., the owner of FV Hospital in Ho Chi Minh City. The transaction, valued at approximately $381 million, is hailed as the largest deal ever in Vietnam's healthcare industry.
Kiat Lim, the group’s executive vice chairman, said in a press release, "The acquisition of FV Hospital deepens our commitment to the Southeast Asian healthcare sector, expanding our group’s presence across three of the region’s most important geographies for healthcare."
The medical group’s expansion strategy is tied to a noticeable increase in health awareness across Southeast Asia, particularly in Vietnam, where demographic shifts towards an ageing population are creating new demands on healthcare services.
“The elderly are now the predominant healthcare customers,” Heng observed.
“This trend, coupled with the shift towards universal healthcare in many Southeast Asian countries, including Singapore's new healthcare standards, offers significant investment opportunities for us,” he continued.
Highlighting the sector’s unique local character, Heng spoke of Thomson Medical Group’s ambition to create synergistic value within its ecosystem. This involves adapting to the specific healthcare needs of Asian patients, which often differ from Western models in terms of facility design and patient care preferences.
“Our journey to build a distinguished Asian healthcare brand has led us to import state-of-the-art Western medical technology while tailoring our services to meet local needs,” he stated.
Looking to the future, Heng revealed plans beyond traditional M&As.
“We're exploring the creation of a healthcare technology company to augment our hospital network. Recognising the abundant talent in Vietnam, our activities will expand, further broadening the Thomson Medical Group ecosystem,” he told VIR.
|Thomson Medical Group’s Kiat Lim leads acquisition of FV Hospital
Thomson Medical Group Ltd. (TMG) announced on July 12 that it has agreed to acquire Vietnam’s FV Hospital for up to $381.4 million, marking the country’s biggest healthcare transaction to date and Southeast Asia’s largest healthcare acquisition since 2020.
|Dentons LuatViet advises on groundbreaking deal in healthcare sector
Prestigious law firm, Dentons LuatViet, has provided expert counsel as the Vietnamese representative for Singapore-based Thomson Medical Group in its successful acquisition of Far East Medical Vietnam Limited. This landmark deal represents one of the largest healthcare mergers in Vietnam and Southeast Asia.