POTENTIAL FOR THE DEVELOPMENT OF VIETNAM’S HEALTHCARE SECTOR IN THE NEW ERA: PRIVATE HEALTH ECONOMICS AS A NEW PILLAR OF VIETNAM’S SOCIAL SECURITY

Amid Vietnam’s ongoing transition toward a two-tier local government model, social security is increasingly positioned as a central pillar in the national strategy for sustainable development. This paper examines the rising role of the private healthcare sector within Vietnam’s social security system. Drawing on the theoretical lenses of quasi-public goods, new institutional economics, and dynamic comparative advantage (Samuelson, 1954; Balassa, 1965; North, 1990), the paper analyzes market potential, key barriers, and policy directions for developing private health economics in Vietnam for the period 2025–2035. Using empirical evidence from the WHO Global Health Expenditure Database and industry datasets (WHO, 2023; Ken Research, 2023; IQVIA Vietnam, 2024), together with policy review (Communist Party of Vietnam, 2017; National Assembly of Vietnam, 2023; Ministry of Health, 2020), the paper argues that private healthcare can become a dual growth engine—improving population health outcomes while also supporting local economic growth during the post-merger administrative restructuring process.