Expansion of CarePlus Clinics in Vietnam Led by Reciprocus Financial Services in Singapore
A consortium of investors led by Reciprocus Financial Services (RFS), acquired a 13 per cent stake in CityClinic Asia Investments (CCAI), which holds a 100 per cent foreign investor license for Vietnamese healthcare operations and fully owns and runs three primary and specialist care clinics under the “CarePlus” brand in Ho Chi Minh City, Vietnam.
The investment by RFS is held through Reciprocus Viethealth Holding (RVH). CCAI also appoints David Emery, founder of the Reciprocus Group of Boutique Advisory Companies, to be a Director of the Board. A portion of the investment has gone towards outfitting CarePlus’ new state-of-the-art medical hub in Saigon’s District 1 which opened in October 2020. The remaining funds will be used to add satellite clinics to the CarePlus network and to expand the specialist verticals.
Lim Thiam Kon, Co-Founder & Chairman of CCAI, said: “We welcome RVH and its group of seasoned investors on board and as part of the CCAI platform. The Vietnamese government is forward looking and highly supportive of private providers to take on a more prominent role in the healthcare service market, thus creating excellent opportunities for private players to get involved. We are glad that the investors see this need and opportunity which is in line with the Founders’ vision to offer best-in-class quality healthcare services to the vastly Vietnamese growing middle-class.”
The Consortium joins a group of existing shareholders, inclusive SGX-listed Singapore Medical Group (SGX: 5OT) which had first invested in CCAI in 2016. Thanks to SMG’s involvement, CarePlus clinic patients in Vietnam can have access to telemedicine services to consult with SMG’s specialists throughout their treatment cycle, thus being able to speak with the Group’s specialists in Singapore without having to leave Vietnam.
David Emery added, “We have been impressed with the structure of CCAI’s business and their Vietnam-based management team’s execution capabilities. Our Consortium understands the opportunity in Vietnam, where the number of hospital beds to population ratio presently is 2.9 per 1,000, while the number of physicians to population ratio stands at 0.8 per 1,000 which will undoubtedly grow significantly towards the OECD average of 4.7 per 1,000 and 3.3 per 1,000 respectively.”