VinaCapital’s flagship fund VOF has announced that it will invest $25 million in private hospital operator Tam Tri Medical Joint Stock Company.

The transaction gives VOF a significant minority stake in the company, which operates four hospitals in south and central Vietnam, according to an announcement. Tam Tri Medical is expected to use the capital to expand current facilities and acquire new facilities. The Vietnamese company is led by CEO Dr. Nguyen Huu Tung, who previously founded the Hoan My Medical Corporation that VOF had backed in 2009. Hoan My Medical was sold to an international investor in 2013. “It is estimated that Vietnamese people annually spend over $2 billion for medical treatment overseas, clear evidence of the enormous opportunity for quality domestic healthcare services. Tam Tri is well positioned to capitalize on that, with well-regarded hospitals and a reputation for medical quality,” said VinaCapital chief investment officer Andy Ho. Tam Tri Medical currently operates four general hospitals in Ho Chi Minh City, Dong Thap, Nha Trang, and Danang, with approximately 500 beds and more than 700 employees. The company claims to be growing by more than 30 percent per annum, as Vietnamese consumers look for alternatives to the public health system or traveling overseas to receive care. The company is considering expanding its footprint nationwide, with a focus on Ho Chi Minh City, central and southern regions, particularly in the Mekong Delta. Launched in 2003, VinaCapital Vietnam Opportunity Fund is a Guernsey-domiciled, closed-ended investment company listed on the London Stock Exchange. Recently, VinaCapital officially decided to conclude its investment in poultry firm Ba Huan JSC after the firm sought the Prime Minister’s intervention in terminating its six-month-old investment partnership. As part of the agreement, all of the capital invested in Ba Huan by VinaCapital will be returned.

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