VinaCapital’s listed Vietnam Opportunity Fund (VOF), has invested in Thu Cuc International General Hospital (TCI), a leading private hospital in Hanoi. VinaCapital led a consortium to invest $26.7 million to obtain a significant minority stake along with a board seat in the well-known health care provider, which is currently undertaking a significant expansion.
The hospital was established in 2011 in one of most populated and rapidly developing areas of Hanoi by Ms Nguyen Thu Cuc, who in 1996 became the first woman to launch and operate a private health care company in northern Vietnam..
Today, TCI employs more than 1,400 staff, including over 230 doctors, many with 20 years or more experience at leading national hospitals. TCI's nine departments encompass twelve medical specialties. In early 2019, a new 5,000 square meter general clinic was opened to handle outpatient visits and corporate health checks. In early 2020, TCI completed a 10-storey extension to the main hospital to more than double its in-patient capacity. The facility uses state-of-the-art diagnostic equipment and adheres to international standards of management.
Ms Nguyen Thu Cuc, Founder and Chairwoman of TCI, said: "We are delighted to partner with VinaCapital. They have a long track record of investing and working with private health care providers like TCI to optimize resources, improve operations and, ultimately, allow us to deliver an even higher level of care to more patients. Their experience in this sector and partnership will be invaluable as we look to further expand the range and level of services we provide."
Andy Ho (pictured), Chief Investment Officer at VinaCapital, stated, "TCI is widely recognized as one of the top private hospitals in Hanoi, a position they have reached in a relatively short amount of time. That speaks to the vision and focus of the founder, the dedicated and professional medical staff, and high quality of care they provide."
As Vietnam's middle class continues to expand, consumers are seeking greater access to private medical services, which help relieve the burden on the public health sector. As one of the first investors in the private health care industry in Vietnam dating back to our investment in Hoan My in 2009, VOF has long recognized the enormous growth potential of this industry. TCI joins our existing health care portfolio of Thai Hoa in the Mekong Delta region, and Tam Tri Medical Corporation, which has hospitals in southern and central Vietnam. This investment in TCI will bring the VOF portfolio exposure to the health care and pharmaceutical sector to 8% of NAV and will position VOF as the leading private equity investor in private hospitals and clinics in Vietnam.
During the first six months of 2020, VOF has returned 1.7 percent. This compares well with the VN Index, which fell 13.8 percent during the same period.
