Innovative financing helps strengthen Vietnam’s primary healthcare: USAID

In her opening remarks, Aler Grubbs, USAID Mission Director, underscored the significance of primary health care, saying that primary health care is not just about health – it is integral to maintaining healthy communities, enhancing education, boosting productivity, and fostering social equity.

Aler Grubbs, USAID Mission Director, gives the opening remarks. Photo courtesy of USAID

Since 2000, Vietnam has made significant strides in primary health care, increasing access to antenatal care from 29% to 93% by 2023, reducing the impact of infectious diseases, and increasing life expectancy at birth by three years.

As Vietnam progresses economically and socially in the coming decade, the health sector is set to become increasingly crucial.

Significant opportunity exists to enhance primary health care by integrating public, private, and digital networks and creating a comprehensive and effective primary health care framework in Vietnam.

Arnaud Ginolin, Managing Partner and Director of Boston Consulting Group Vietnam, presents at the workshop. Photo courtesy of USAID

At the workshop, Arnaud Ginolin, Managing Partner and Director of Boston Consulting Group in Vietnam, the consulting firm contracted by USAID to analyze the primary health care landscape and engage in various private sector entities, delivered a presentation on the potential of blended finance to enhance Vietnam’s primary health care system.

Blended finance, which combines public or development capital with private sector investment in sustainable development, is a critical tool to unlock previously underutilized resources.

Between 2018 and 2020, development funders contributed an average of US$89 million per deal through concessional capital, the most common blended finance instrument, to mobilize private capital investing in social impact goals.

Arnaud Ginolin (2nd, L), Managing Partner and Director of Boston Consulting Group Vietnam, presents at the workshop. Photo courtesy of USAID

The workshop also featured an open discussion led by USAID Mission Director Aler Grubbs with private sector representatives.

Participants shared insights into the current market opportunities and discussed the challenges faced in investing in and developing Vietnam’s primary health care capabilities.

A major challenge highlighted was the shortage of long-term funding, essential for primary health care sustainability and impact.

Private sector participants also emphasized the need for a ‘sandbox framework’ to test and validate new service models. Successful models could then be scaled up and implemented through public sector engagement to maximize impact.

USAID is said to be adopting a pioneering collaborative approach to overcome these challenges. This strategy aims to bring together private sector entities and other stakeholders to enhance financing solutions and ensure the sustainable development of Vietnam’s health care system. Blended finance is set to play a pivotal role in structuring these collaborations.