Search for Capital and Financing in Vietnam's Private Healthcare Sector
Capital and financing bottlenecks arising from the growth of the private healthcare sector in Vietnam are being addressed through financial leasing models and new policy mechanisms.
As private healthcare services rapidly develop in Vietnam, high investment needs and challenges in accessing capital constitute a significant bottleneck. Financial leasing and new policy mechanisms are considered critical ways to solve the financing problem of this sector.
High Investment Needs and the State of the Sector
Vietnam's population exceeding 100 million and aging rapidly are increasing the demand for the private healthcare sector. However, even a medium-sized hospital requires massive investments.
Medical equipment constitutes a major portion of the total capital, and high dependence on imports further increases the financing requirement.
Challenges in Accessing Capital
Access to medium and long-term capital for private hospitals and clinics remains quite limited. Bank loans continue to be the primary channel, but collateral requirements create difficulties.
Current borrowing conditions do not always match the operational life of the equipment, and cash flow potential is not adequately evaluated.
Solutions Offered by the Financial Leasing Model
According to the 2024 Law on Credit Institutions, financial leasing is a type of credit that enables hospitals to acquire equipment without making large upfront capital investments.
Thanks to sale-and-leaseback models, businesses can convert their existing equipment into cash to expand their facilities and areas of expertise.
Obstacles and Deficiencies Faced by the Market
According to the Vietnam Leasing Association, the leasing market faces various bottlenecks such as limited resources and unfavorable tax policies.
Private healthcare institutions also experience various difficulties regarding land access, service pricing, and health insurance payments.
International Experiences and New Policy Recommendations
In countries such as Germany, Japan, and South Korea, financial leasing is successfully implemented as an integral part of the equipment financing ecosystem.
For Vietnam, it is recommended to implement a national equipment leasing program, preferential refinancing mechanisms, and tax incentives.