Establish a healthcare company in Vietnam

Currently, with the liberal regulations of Vietnamese law, health care is not only the task of public hospitals but also includes the participation of non-public and non-public medical examination and treatment facilities. Furthermore, there is more investment from foreign investors in this field. In the following article, Viet An Law Firm provides preliminary advice on the conditions to establish a healthcare company in Vietnam.

Legal basis

• WTO Commitment Schedule;
• Law on Enterprise 2020;
• Law on Medical Examination and Treatment 2023;
• Decree 01/2021/ND-CP on business registration;
• Decree 96/2023/ND-CP details several articles of the Law on Medical Examination and Treatment;
• Decision 27/2018/QD-TTg promulgating the Vietnam Economic Sector System.

Market access conditions for foreign-invested healthcare company

Vietnam’s commitments when joining the WTO

Based on section 8 of Vietnam’s Schedule of Commitments in the WTO regulating health and social services, it can be seen that when Vietnam joined the WTO, it committed to opening the door for foreign investors to access the market for foreign investors with Hospital Services (CPC 9311) and Dental and Medical Services (CPC 9312).

Accordingly, to establish a business company of this type, foreign service providers are allowed to provide services by establishing a 100% foreign-invested hospital, joint venture with Vietnamese partners, or through a Business Cooperation Contract.

The minimum investment capital for a hospital is 20 million USD, a general clinic (policlinic) is 2 million USD and a specialized treatment facility is 200 thousand USD.

Healthcare business line code

Conditions for granting a license to operate healthcare services

Regarding scale

Have a scale appropriate to each form of medical examination and treatment facility organization

Regarding facilities

• Having a fixed location that meets the provisions of the law on load-bearing safety, fire prevention, and fighting, infection control, environmental protection, and radiation safety (if any); ensure enough electricity and water to serve the operations of medical examination and treatment facilities;
• Having signs, diagrams, and signs leading to faculties, departments, professional and administrative departments;
• Arrange specialized departments to suit the functions of each department, convenient for medical examination and treatment;
• Meets construction requirements as prescribed by law, including ensuring a minimum construction floor area of 50 m2/hospital bed; The width of the front (front) of the hospital must be at least 10 m, ensuring passage for ambulances to enter and exit the emergency area; Clinics in hospitals must meet the minimum area requirements equal to the area of the corresponding clinics specified in Articles 43, 44, 45, 46, 47, 48, 49, 53 of Decree 96/ 2023/ND-CP;

Regarding medical equipment

• Have enough medical equipment and instruments suitable to the scope of professional activities of the facility;
• For injections, changing bandages, counting pulse, measuring temperature, and measuring blood pressure, you must have a box of anti-shock medicine;
• Emergency transportation must include an ambulance; There is a box of anti-shock medicine and enough emergency medicine. Have an emergency transportation contract with an aviation service company if the facility registers to transport patients abroad.

Regarding personnel

• Dentistry: The person responsible for technical expertise must be a practitioner with the title of doctor with the scope of practice in dentistry or maxillofacial surgery.
• Nutrition: The person responsible for technical expertise must be a practitioner with the title of doctor with the scope of practice in clinical nutrition or the title of clinical nutrition.
• Testing: The person responsible for technical expertise is a practitioner with one of the following titles: A doctor with a specialized scope of practice in medical testing; Or, a medical technician with the scope of practicing medical testing with a bachelor’s degree or higher.
• Imaging diagnosis: The person responsible for technical expertise is a practitioner with one of the following titles: Doctor with a scope of practice specializing in medical imaging techniques; Or, medical technology with a scope of practice in medical imaging with a bachelor’s degree or higher.
• Dental prosthodontics: The person responsible for technical expertise is a practitioner with a medical technician title with a bachelor’s degree or higher in the scope of dental prosthodontics practice.
• Rehabilitation techniques: The person responsible for technical expertise is a practitioner with one of the following titles: Doctor with specialized scope of practice in rehabilitation; Or, medical technology with a scope of practice in rehabilitation with a bachelor’s degree or higher.
• Clinical psychology: The person responsible for the technical expertise of a clinical psychology facility must be a practitioner with one of the following titles: Clinical psychology; Or, a doctor with a specialized scope of practice in psychiatry and has completed a certificate of basic specialized training in clinical psychology.
• Nurse: The person responsible for technical expertise is a practitioner with one of the following titles: Doctor; physician; nursing; and midwifery.
• Midwife: The person responsible for technical expertise is a practitioner with the title of midwife.
• Palliative care: The person in charge of technical expertise is a practitioner with the title of doctor with the scope of practice falling into one of the following cases: Scope of medical practice; Or, the scope of traditional medicine practice; Or, the scope of practice of preventive medicine; Or, the scope of specialty practice, except dental and maxillofacial specialties.
• Out-of-hospital emergency care: The person responsible for the technical expertise of the out-of-hospital emergency facility is a practitioner with one of the following titles: Doctor; out-of-hospital paramedics.
• Prescription glasses: The person responsible for technical expertise is a practitioner with one of the following titles: Eye specialist; Or, medical technology with scope of practice in refractive ophthalmology.
• Dialysis: The person in charge of technical expertise must be a practitioner with the title of doctor with one of the following scopes of practice: Medicine; internal medicine; specialized in emergency resuscitation. And have a certificate of specialized technical training in artificial kidneys.

Procedures for establishing a health care company

Step 1: Foreign investors apply for an Investment Certificate

Dossier include:

• Written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;
• Documents on the investor’s legal status: copy of identity card or identification card or passport (if an individual); Copy of certificate of establishment or equivalent document and passport of the capital manager (if an organization);
• Proposed investment project. In cases where the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal.
• Documents proving the investor’s financial capacity include at least one of the following documents: the investor’s most recent 2-year financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor’s financial capacity; Other documents proving the investor’s financial capacity;
• In case the investment project does not request the State to allocate land, lease land, or allow a change of land use purpose, submit a copy of land use rights documents or other documents determining the right to use the location for implementation. current investment project;
• Content explaining the technology used in investment projects for projects subject to appraisal and consultation on technology according to the provisions of the law on technology transfer;
• Other documents related to the investment project, conditions, and capacity requirements of the investor according to the provisions of law (if any);
• Power of attorney for Viet An Law.

Place of application: Department of Planning and Investment where the head office is expected to be located.

Implementation time: Within 15 days from the date of receiving complete and valid documents, the Department of Planning and Investment will issue an Investment Registration Certificate to the foreign investor. In case of refusal, the Department of Planning and Investment will respond in writing and clearly state the reason.

Step 2: Establish a company

Business establishment documents include:

• Application for business registration;
• Company charter;
• List of founding shareholders and shareholders who are foreign investors (if a joint stock company); List of members (if it is a multiple-member LLC);
• Certified copy of identity card or citizen identification card or passport (if an individual); Establishment decision, enterprise registration certificate or equivalent document and citizen identification card or identity card or passport with authorization document for the capital manager in Vietnam (if an organization) ;
• Certified copy of the issued Investment Registration Certificate;
• Power of attorney for Viet An Law Firm;

Place of application: Department of Planning and Investment where the enterprise is headquartered.

Implementation time: 03 – 06 working days.

Step 3: Apply for a License to operate medical examination and treatment

The dossier includes the following papers and documents:

• Application for an operating license for a medical examination and treatment facility according to Form 02, Appendix II issued with Decree 96/2023/ND-CP;
• A valid copy of the establishment decision or document with the name of the medical examination and treatment facility issued by a competent state agency for state-owned medical examination and treatment establishments or an enterprise registration certificate for private medical examination and treatment establishments or investment certificates for foreign-invested medical examination and treatment establishments;
• A valid copy of the practicing certificate of the person in charge of technical expertise of the medical examination and treatment facility; the person in charge of the specialized department of the medical examination and treatment facility according to Form 11, Appendix I issued with Decree 96/2023/ND-CP (not applicable in cases where these documents have been linked), shared on the Information System on the management of medical examination and treatment activities or the national health database);
• List of registered practitioners at medical examination and treatment facilities (including registration of practitioners and medical professionals at the facility but not subject to a practice certificate) according to Form 01 Appendix II issued together with Decree 96/2023/ND-CP;
• A declaration of facilities, medical equipment, organization, and personnel of the medical examination and treatment facility according to Form 08, Appendix II issued with Decree 96/2023/ND-CP;
• Documents proving that the medical examination and treatment facility meets the conditions for facilities, medical equipment, and personnel organization following the scope of professional activities of one of the organizational forms specified in Section 1 Chapter III Decree 96/2023/ND-CP;
• The organization and operation charter for state hospitals shall comply with the form prescribed by the Minister of Health; For private hospitals, follow Form 03, Appendix II issued with Decree 96/2023/ND-CP and the initial operation plan for the hospital;
• A valid copy of the patient transport contract for hospitals that do not have off-site emergency transport vehicles;
• List of technical expertise of medical examination and treatment facilities proposed based on the list of technical expertise issued by the Minister of Health;
• In the case of applying for the first license to operate a humanitarian medical examination and treatment facility or a non-profit medical examination and treatment facility, there must be documents proving the financial resources to ensure the medical examination and treatment activities, humanitarian medical treatment, or medical examination and treatment activities not for profit purposes.

Where to apply:

• The Ministry of Health issues new operating licenses for medical examination and treatment facilities under the Ministry of Health;
• The Ministry of National Defense issues new operating licenses and suspends operations for medical examination and treatment facilities under its management;
• The Ministry of Public Security issues new operating licenses to medical examination and treatment facilities under its management;
• The Department of Health of the provinces issues new operating licenses to medical examination and treatment facilities in the management area, except for cases prescribed by the competent agencies above.

Implementation time: Within 60 days from the date of receiving complete documents, the competent authority will review the documents and appraise them at the facility to issue an operating license. In case an operating license is not granted, there must be a written response stating the reason.

Service for company establishment in Vietnam of Viet An Law Firm

• Consulting on conditions for establishing a healthcare company;
• Drafting documents to establish a healthcare company;
• Representing clients to submit applications, monitor and resolve issues related to procedures for establishing health care companies at state agencies;
• Representative to carry out procedures for granting Investment Registration Certificate, Enterprise Registration Certificate, Operating License of health care company to clients;
• Comprehensive consulting on activities arising while conducting business for clients.

Clients wishing to establish a healthcare company in Vietnam, please contact Viet An Law Firm for detailed support!