On 15 April, Warburg Pincus announced an investment in Xuyen A, a prominent private tertiary general hospital group in Vietnam with a decade-long history, although the specific amount of the investment was not disclosed. Xuyen A Hospital has recently expanded its services, becoming one of the few hospitals in Vietnam to provide a comprehensive range of oncology services, marked by its newly launched oncology center. This investment also further solidifies Warburg Pincus' position as a major investor in Vietnam, which has so far invested around 2 billion USD across different sectors in the Southeast Asia country.
This investment follows the recent investment by sovereign wealth fund GIC of Singapore in the pediatric clinic chain Nhi Dong 315 worth 30 million USD, and by KKR in the Medical Saigon Group eye care hospital chain as covered in our previous report, this year. With its over-65 population projected to represent 17 percent of the total population by 2030, Vietnam offers significant growth potential for private investors. According to the American Chamber of Commerce in Hanoi (AmCham Vietnam), healthcare expenditure per capita is predicted to increase by 9.2% annually between 2009 and 2025 in Vietnam, reaching 262 USD by 2025, translating to a total market value of 26 billion USD.
In the meantime, Singapore sees another major Japanese investment in its healthcare sector. Mitsui & Co., Ltd., a leading trading conglomerate in Japan, has announced a joint entity with ROHTO Pharmaceutical Co., Ltd. to acquire shares of Eu Yan Sang International Ltd (EYS). Based in Singapore, EYS specializes in the manufacturing and sale of traditional Chinese medicines, boasting a network of over 170 retail outlets and 30 clinics across the markets of Singapore, Hong Kong, and Malaysia. Under the joint entity, the two Japanese companies will acquire 86 percent of the shares of the EYS, with the entire company valued at around 800 million SGD (approx. 600 million USD).
