Kim Dental - the private-owned healthcare system has successfully mobilized nearly VND500 billion from many large investment funds in the world such as Maj Invest (Denmark), Aura (Singapore), RedBadge (South Korea).
Most recently, Kim Dental System received an approval to issue VND223 billion of Convertible Bonds to International Finance Corporation (IFC) - a member of the World Bank Group.
Why have many large investment funds in the world continuously invested in Kim Dental in the past two recent years? Mr. Su Duy Bin – Chief Executive Officer and Co-Founder of Kim Dental System shared this story.
Mr. Su Duy Bin said that Kim Dental always welcomes all the resources around the world with the purpose to build a Vietnamese Health Ecosystem applying modern technology to serve all Vietnamese people.
Could you tell us, what are the difficulties of Kim Dental to call for the the Investment Funds?
All other sectors such as finance, retail, F&B (Food and Beverage), FMCG (Fast-Moving Consumer Goods) in Vietnam as well as in the world have many models, analytical data and simple legal. For the health sector in Vietnam, there are not many large corporations, moreover, data and statistical reports on the sectors are not popular, so the assessment of investment in the health system in Vietnam is still difficult.
Over the past 2 years, Kim Dental has expanded clinics system very quickly and has also closed many clinics. Some of the clinics we have to adjust a lot, experienced many failures, relatively large financial losses. Human resources have changed a lot, and the management system has to be rebuilt several times.
Then, Kim Dental System has established a model, planned a network of clinics, as well as completed the human resource system, completed the process and had quality standards. This model has paved the way for the participation of other investment funds lately because we have clear business model, audited report data, strategies and growing plans in the next 3-5 years.
The health sector is very attractive, but it is not easy for the Funds to invest capital in health organizations. So why do so many large investment funds in the world invest in Kim Dental?
Investing in the health sector is difficult for moderator and the investment fund due to large number of the barriers to entry. Moreover, the application of strengths of other industries in the health sector is also facing many challenges: developing the clinic network as the Retail industry does, the customer service as F&B, the strict management system as Bank; operating under the legal system of the Ministry of Health and the standards of the Medical Services Administration. However, we have overcome all Due Diligence rounds to meet the Investment Fund's standard.
First, we evaluate the Vietnam healthcare sector in general and dental industry in particular: the dental industry is very fragmented, most of the dental clinics are small and family-sized. Unlike these clinics, we, at Kim Dental, set up a system of modern clinics with high quality service and affordable price.
Second, to evaluate the legal system, we can see the health sector has to comply with many types of licenses and has been much harder than Retail, F&B or FMCG sectors. In reality, the healthcare sector is required to have business license, operation certificate issued by the municipal department of health, X-ray license, environmental impact assessment, discharge permit, water connection permit, etc.
The third is the audit of the accounts: we have to build the transparent accounting system, all tax obligations, clear figures to meet the requirements of foreign auditors and the system to prove business efficiency.
Last but not least, for the manpower and management system: Kim Dental has a leadership team and a staff who work with all enthusiasm and open minds. Moreover, we apply the technology in all system management with Dashboard real-time system, detailed management of each clinic and entire system.
In conclusion, Kim Dental has people, complete business model, transparent financial data and comprehensive development strategy. These are the key elements for many investment funds to participate in Kim Dental’s development.
Does the capital contribution of foreign investment funds affect the development orientation of Kim Dental System?
We always believe the investment funds are our good friends and companionship with a clear role to develop together. In addition to financial contribution, the investment funds help us a lot in finding good people for mutual development, discussing strategies, analyzing the market and especially help leadership access to knowledge in the world by connecting and exchanging with large incorporations in the world. So far, we feel lucky and very appreciate the funds thanks to their knowledge, strategic direction and professional company model which have been built from the cooperation with big investment funds.
Mr. Huynh Minh Viet, Dr. Nguyen Huu Nam, Mr. Su Duy Bin attended the IFC Global Private Healthcare Conference in March 2019 - This is way the Investment Fund helps Kim Dental Board to access knowledge and relationships with many medical groups in the world.
Can you share more about the orientation that Kim Dental will continue to attract investment in the future? Will Kim Dental continue to call for investment funds in the future?
Investment in healthcare sector needs a huge amount of capital. Especially, the investment capital for a network with full of modern machinery and equipment as standardized Kim Dental system is always in high demand. We have completed the model, everything has come into the system and only development. We always welcome all investment sources from organizations, businesses and individuals, to accompany Kim Dental in promoting the growth and development of a network of dental clinics throughout Vietnam.
Continuing to attract investment in Kim Dental helps us to grow and strengthen five goals: firstly, to further improve the income level of the health human resources in the system to be comparable with developed countries such as Singapore; secondly, continue to invest in the management system to improve customer experience and better serve customers; thirdly, continue to expand the network of dental clinics in many provinces at a faster pace; fourthly, implement the M&A strategy and cooperate with major dental clinics in all provinces and still maintain the founder's soul; fifthly, continue to develop the dental ecosystem to help the Kim Dental system develop more sustainably, the Vietnamese dental industry has a trademark in the world.
Thank you for your sharing and wish Kim Dental will achieve greater success in the future!