SET-listed Thonburi Healthcare Group Plc (THG) will spend 5 billion baht between 2023 and 2025 funding various investment projects, including the construction of new hospitals in Thailand and Vietnam, as it aims to benefit from the full reopening of countries.
Investment in greenfield and brownfield projects as well as those initiated by startups are in the company's focus, said Tanatip Suppradit, chief executive of THG.
"We are seeking new opportunities in the healthcare business which is recovering slowly, thanks to the full reopening of Thailand to boost tourism, and China's reopening," he said.
THG is conducting a feasibility study to invest in a new hospital in Vietnam under a joint venture because of the country's large population.
The healthcare business is tending to grow rapidly in Vietnam, with GDP growth of 5-6% a year. The country's GDP per capita is US$3,700, compared with $7,000 per capita in Thailand.
THG expects to conclude an investment deal in Vietnam this year. Its first plan is to construct an orthopedic hospital.
In Thailand, the company will continue to expand its business by building Thonburi Rangsit Hospital. It is currently preparing an environmental impact assessment report for the project.
A plan to build Pinklao Cancer Hospital in Bangkok comes under another business in Thailand that is operated by a THG subsidiary.
The company is also focusing on healthcare businesses that serve the growing number of elderly people in Thailand.
THG owns a total of 10 hospitals in Thailand, with the total number of beds currently standing at 1,520.
"In 2025, we will increase the number of beds by 200 in Thailand," said Dr Tanatip.
The company is in talks with firms that are interested in developing healthcare businesses to serve their employees in order to reduce costs in health insurance, he said.
THG expects its revenue to grow by 10% this year as the tourism recovery helps boost the healthcare business.
Last year, the company saw total revenue increase by 6.4% year-on-year to 11.5 billion baht while profit rose by 23.6% year-on-year to 1.67 billion baht.
THG continues to jointly operate a small hospital in Rangoon, Myanmar amid the ongoing political conflict. Its business partners plan to expand the hospital to serve more patients, said Dr Tanatip.