The city People's Committee has recently approved the initiative ‘Mobilizing Social Resources for Healthcare Development in Ho Chi Minh City from 2024 to 2030’ to establish policy frameworks and legal pathways to attract investors for healthcare projects, ultimately enhancing the quality of healthcare services available to the public.
This initiative serves to implement the mechanisms outlined in Resolution No. 98/2023/QH15 of the National Assembly, which focuses on piloting specific mechanisms and policies aimed at the development of Ho Chi Minh City.
Ho Chi Minh City is home to a comprehensive healthcare system, featuring 129 hospitals, 310 medical stations, and more than 8,000 private clinics. Nevertheless, certain hospitals are experiencing deterioration and overcrowding, coupled with inadequate facilities, which contributes to the strain on medical resources.
Additionally, the health sector in Ho Chi Minh City handles approximately one-quarter of all medical visits across the country, with inpatient care representing about one-tenth of the national total, primarily serving patients from surrounding provinces.
While the southern largest city has the pressing need for investment in health sector infrastructure and equipment, it is actively seeking public-private partnerships to fund various health-related projects as part of the implementation of the Resolution 98.
Additionally, the city has introduced a policy to provide interest rate support for investment initiatives financed by the Ho Chi Minh City State Financial Investment Company (HFIC) in key socio-economic development areas, including health projects. Nguyen Hoai Nam, Deputy Director of the Ho Chi Minh City Department of Health, stated that the city aspires to establish itself as the healthcare hub of the ASEAN region, with several significant initiatives underway. Notably, Ho Chi Minh City plans to develop six major medical clusters, including a central cluster and additional clusters located at strategic points in Thu Duc City, Binh Chanh District, Can Gio District, and the Southwest cluster.
The project titled ‘Mobilizing Social Resources for Healthcare Development in Ho Chi Minh City from 2024 to 2030’ which has received approval from the municipal People's Committee, aims to harness social resources for investment in the healthcare sector. The Department of Health's leadership is hopeful about the current healthcare initiatives in Ho Chi Minh City, building on the success of previous public-private partnership projects in various sectors. They believe that with the right investment policies, these initiatives will come to fruition and significantly improve healthcare services for the community.
The investment projects categorized under the public-private partnership model, as outlined in the Resolution 98 ratified by the city People's Council, encompass six initiatives within the healthcare sector. Recently, various relevant organizations have conducted numerous dialogue conferences aimed at attracting investment, reaching out to both domestic and international companies to engage in the healthcare sector of Ho Chi Minh City.
During these conferences, many companies showed interest in the projects being promoted by the southern metropolis; however, they raised questions regarding the necessary procedures and documentation required to access supportive funding.
Chairman Nguyen Ngoc Hoa of the Board of Members of HFIC announced that in July 2024, the Ho Chi Minh City People's Committee enacted a decision to implement an interest rate support policy for investment projects financed by HFIC in key socio-economic development areas, in accordance with Resolution No. 09/2023 from the Ho Chi Minh City People's Council. Many enterprises have already completed necessary loan application procedures.
Recently, the Department of Planning and Investment, along with the Department of Industry and Trade of Ho Chi Minh City, proposed to the Ho Chi Minh City People's Committee the formation of two interdisciplinary working groups tasked with reviewing interest rate support projects. The establishment of these working groups is expected to expedite project appraisals, allowing HFIC to promptly disburse funds to assist investors.
According to Deputy Director Nguyen Hoai Nam of the Ho Chi Minh City Department of Health, the capital and interest rate support policy established under the National Assembly-approved Resolution 98 and the Resolution No. 09/2023 of the city People's Council includes several reformative aspects that facilitate investment opportunities. Investors are not required to provide counterpart capital, can secure loans for multiple projects concurrently, and are permitted to integrate various funding sources within the project's financial framework.
Additionally, the loan terms are flexible. These measures will create more avenues for hospitals to invest in their facilities and medical equipment for patient care.
The Deputy Director of the Ho Chi Minh City Center for Trade and Investment Promotion, Dao Minh Chanh, announced that from 2021 to 2025, Ho Chi Minh City will undertake 116 projects in the healthcare sector, with a total investment of nearly VND24 trillion.
From 2026 to 2030, the city plans to initiate 150 additional projects, amounting to approximately VND 52 trillion. To establish a center for the training of high-quality medical professionals, enhance infrastructure and specialized techniques, and promote medical tourism that integrates both modern and traditional medicine, Ho Chi Minh City is inviting investors to participate in these initiatives, thereby improving healthcare services for its residents.
During a dialogue held in early October 2024 between healthcare businesses and the Ho Chi Minh City government, a representative from the Ho Chi Minh City Department of Health indicated that the city is seeking investments through a public-private partnership model for six healthcare projects.
These projects include the service examination and treatment area at Nguyen Tri Phuong Hospital, the examination and treatment department for foreigners at Le Van Thinh Hospital, Ho Chi Minh City Stroke Hospital, two high-tech screening and diagnosis centers located in Thu Duc City and Binh Chanh District, and the second phase of the Practice Hospital at Pham Ngoc Thach University of Medicine.
