Prime Minister Nguyen Tan Dung has approved in principle plans to build the VND100 billion (USD4.85 million) Hoan My Medical University.
The facility, located in Ho Chi Minh City, will be the first private medical university in the country.
The Ministry of Education and Training has been told to co-ordinate with local authorities in order to conduct an appraisal of the project before its submission to the PM for final approval.
The university is expected to start operation in 2012 to admit 100 students in the first school year.
Students will be provided with four-year training through a relationship with US medical universities.