The plans were discussed during a meeting on Wednesday between Vietnamese Deputy Prime Minister Pham Thi Thanh Tra and César Louis-Philip Marseille, managing director of VAMED Engineering GmbH and a member of the board of VAMED+WWH Group of Germany.

Stressing that Vietnam is one of VAMED's important partners in Southeast Asia, Marseille said the planned investment of €1.2 billion over the next five years is expected to create thousands of jobs and promote knowledge and technology transfer, he added.

VAMED also wants to expand cooperation through concessional financing projects, public-private partnerships, and partnerships with private-sector investors. The group plans to supply medical products from Austria and Germany to Vietnamese partners.

Notably, VAMED proposed studying a hospital ship in Phu Quoc off Vietnam's southern province of An Giang, subject to the necessary conditions.

The company said the model would be a new approach for Vietnam's healthcare system and could provide medical services to large numbers of patients while strengthening the country's healthcare capacity.

Deputy PM Tra, in reply, welcomed the proposal, noting that Vietnam's long coastline and diverse healthcare needs create conditions for developing mobile healthcare models at sea. Such facilities could also help Vietnam respond to natural disasters and other emergencies, she said.

The proposed medical ship in Phu Quoc is also consistent with Vietnam's efforts to combine healthcare and tourism, particularly as the island prepares to host the APEC Economic Leaders' Week in 2027.

Tra said the project should be designed as a long-term healthcare asset rather than being developed solely to serve the APEC event. It should help strengthen local medical capacity, support the organization of international events, and improve healthcare services for the wider population.

She asked VAMED to quickly complete a detailed proposal covering technology, operations, and implementation mechanisms for the project.

Tra required the Ministry of Health to work with other ministries, agencies, and An Giang authorities to assess the hospital-ship concept, including its feasibility, technical requirements, standards, regulations, and other conditions needed for implementation.

The An Giang People's Committee was tasked with coordinating with relevant agencies to review the project's documents, investment conditions, and procedures.

In addition to the hospital ship proposal, Tra suggested VAMED invest in elderly healthcare and care facilities in Vietnam as the country faces growing demand for healthcare services.

VAMED has operated in Vietnam since 1997. Over nearly three decades, the group has deployed about €158 million in official development assistance (ODA) funding and implemented 10 major projects, helping upgrade medical equipment at 15 military hospitals, as well as Bach Mai Hospital, Cho Ray Hospital, and Hue Central Hospital. VAMED has also supported the development of medical-waste incineration facilities serving 25 local hospital clusters.