Vietnam’s hospitality and residential sectors enter a new growth phase, supported by strong demand, rising arrivals and expanding development pipelines across key destinations.
Vietnam’s hospitality and residential sectors are entering a new phase of growth, supported by strong tourism recovery, rising demand and continued investment across key destinations.
According to insights presented at the MTE HCMC 2026 conference in Ho Chi Minh City, the country has emerged as one of Asia-Pacific’s strongest performing tourism markets. Vietnam recorded 21.1 million international arrivals over the past year, representing a 20.4% increase, significantly outperforming the wider region’s 5% growth.
Notably, Vietnam surpassed Thailand as the leading destination for Chinese leisure travellers, reinforcing its growing appeal across key source markets.
Strong performance across hospitality indicators
The hospitality sector continues to benefit from positive market fundamentals, including a 15% increase in RevPAR compared to 2024, alongside improving occupancy levels and diversified demand sources. These trends are positioning Vietnam as a leading destination within Southeast Asia.
Jesper Palmqvist, Regional Vice President, Asia-Pacific at STR CoStar, said, “Viet Nam’s hotel market continues to demonstrate resilience, with positive performance trends observed across multiple segments. The ADR displays YoY growth across luxury, upper-midscale, and economy categories, with the extent of improvement varying by segment. Compared with several regional markets, Viet Nam has maintained relatively strong momentum. Destinations such as Phu Quoc and Da Nang are gradually improving their market positioning as they mature and develop further.”
The country is targeting 25 million international arrivals in 2026, representing projected growth of 18.1%, supported by visa liberalisation, expanded air connectivity, infrastructure upgrades and enhanced destination marketing.
Geopolitical pressures and shifting travel patterns
Despite strong fundamentals, global geopolitical tensions are introducing short-term disruptions to travel flows. The Middle East’s role as a major transit hub between Europe and Asia means that any instability in the region can impact intercontinental travel patterns.
Mauro Gasparotti, Senior Director, Southeast Asia at Savills Hotels, said, “While Viet Nam remains a fundamentally resilient destination, recent geopolitical tensions are already causing short-term disruption to travel demand, with increasing cancellations, postponements, and re-routed itineraries across key international markets. Although global disruptions are affecting overall travel flows, the country expects to be comparatively less impacted due to its lower reliance on Europe and Middle East inbound markets and its strong positioning within short-haul demand from North Asia, particularly South Korea and China.”
Development pipeline driven by coastal destinations
Hotel development activity remains concentrated in coastal destinations, with Da Nang and Phu Quoc leading the pipeline. Phu Quoc is experiencing accelerated growth ahead of APEC, with more than 10,000 new hotel rooms under development—equivalent to approximately 70% of existing inventory—scheduled for completion by 2027.
Mauro Gasparotti added, “While APEC presents a significant demand catalyst, its success will depend not only on the delivery of new hotel supply, but also on the readiness of connectivity, local infrastructure, logistics capabilities, and the effective coordination across the broader tourism and service ecosystem.”
Structural transformation across real estate and hospitality
As the market evolves, attention is shifting toward long-term structural improvements. Industry stakeholders emphasise the need for stronger governance, improved financing mechanisms and more disciplined supply strategies to ensure sustainable growth.
Hieu Do, Chief Executive Officer of VinaLiving, said, “To move the real estate market forward, we must return to fundamentals and address structural issues with practical solutions. Residential affordability can only be solved through long-term financing mechanisms and transparent buyer support policies. In hospitality, the focus must shift toward disciplined supply management and value-chain–driven zoning.”
Branded residences gain traction
The branded residences segment is gaining momentum, supported by global growth trends and increasing interest from high-net-worth individuals. Vietnam is seeing a shift from resort-based developments to urban projects in Ho Chi Minh City and Hanoi, reflecting evolving buyer preferences.
Uyen Nguyen, Associate Director, Savills Hotels, said, “Viet Nam’s branded residence market is reaching an important turning point, with a strong shift from resort developments to urban projects in HCMC and Ha Noi. The growth of this model is driven by several factors, especially the expansion of high-net-worth individuals and the strong trust buyers place in developments backed by international brands.”
The MTE HCMC 2026 conference brought together more than 1,400 industry leaders and over 60 international speakers, reinforcing its role as a key platform for knowledge exchange across hospitality, real estate and design sectors in Southeast Asia.
As Vietnam transitions from recovery to sustained expansion, the alignment of tourism growth, real estate development and infrastructure investment is expected to shape the next phase of the country’s hospitality market evolution.
Source: https://www.traveldailynews.asia/destinations/vietnam-hospitality-market-enters-new-growth-phase/