Unlike aviation or network telecoms, private healthcare is wide open to foreign capital: an investor may own 100% of a hospital in Vietnam. The real gate is not the equity ratio but the chain of facility conditions, practising staff and the operating licence under the 2023 Law on Medical Examination and Treatment.
Ownership: no cap, but the investment must be real
Vietnamese law imposes no foreign-equity ceiling on private hospitals and clinics — both 100% foreign-owned and joint-venture models are lawful. Under Vietnam’s health-services market-opening commitments, a foreign-invested hospital project carries an expectation of substantial investment (the historical WTO-commitment reference levels are USD 20 million for a hospital, USD 2 million for a polyclinic and USD 200,000 for a specialised clinic) — investors should confirm the level applied at the time of their investment registration certificate, because the licensing authority appraises the fit between capital, bed scale and registered specialities.
Facility and staffing conditions: the most heavily appraised part
A medical facility must meet conditions on fixed premises, scale and medical equipment matching its organisational form (hospital, polyclinic, specialised clinic), plus radiation safety, fire safety and medical-waste rules under sector law. On staffing: the person in charge of technical expertise must hold a matching practising licence and the practice experience prescribed by Decree 96/2023/ND-CP; foreign doctors practising in Vietnam need a Vietnamese practising licence and must satisfy the Vietnamese-language condition or work through an interpreter as prescribed — the point international hospitals most often underestimate when planning recruitment.
The operating licence: issued after on-site appraisal
The standard sequence: incorporate and obtain the investment registration certificate; build and equip the facility; recruit the licensed team; then apply for the medical operating licence under the Law on Medical Examination and Treatment 15/2023/QH15 and Decree 96/2023/ND-CP, with an on-site appraisal before issuance. Once operating, the facility is graded by technical-expertise level (primary, basic or specialised) — the grade defines the techniques it may perform and must be disclosed to patients. Foreign-invested hospitals sit under the same price-listing and medical-advertising rules as domestic facilities.
Frequently asked questions
Is there a foreign ownership cap in private hospitals?
No cap: a foreign investor may own up to 100% of a private hospital or clinic in Vietnam under the health-services opening commitments and current investment law. The practical limit is not the equity ratio but the operating-licence conditions: facilities, equipment and practising staff are appraised before the facility may examine and treat patients.
What are the charter-capital and facility conditions for a foreign-invested hospital?
The medical law sets no single statutory capital figure for every private facility; financial conditions are appraised through the investment project’s proportionality (WTO-commitment references: around USD 20 million for a hospital, USD 2 million for a polyclinic, USD 200,000 for a specialised clinic). The binding conditions sit in premises, scale, equipment and staffing for the registered organisational form under Decree 96/2023/ND-CP.
What operating licence does a foreign-invested medical facility need?
The facility must hold a medical examination and treatment operating licence under the Law 15/2023 and Decree 96/2023/ND-CP before receiving patients. The file centres on facility and equipment conditions, the roster of licensed practitioners and the technical person in charge; the authority appraises on site. Examining and treating patients without the operating licence is a grave violation, even with business and investment registrations in hand.
Joint venture or 100% foreign-owned: which is better for a hospital in Vietnam?
Both are lawful because private healthcare carries no foreign-equity cap. A joint venture with a Vietnamese partner is strong on premises, local relationships and domestic patient flow; the 100% model gives the investor full control over governance standards, brand and clinical systems. Decide on what the partner actually brings, because the law does not force a joint venture for licensing.
FLAT Law Firm — FLAT Law Firm advises on foreign-invested hospitals and clinics: ownership structure, the operating-licence path under Decree 96/2023 and practice conditions for foreign doctors.
This article has been quality-reviewed by the FLAW AI Legal Council