Vietnam Hospitality Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Vietnam Hospitality Market Trends and Insights

Resilient domestic leisure travel and work-cation culture

Domestic travel hit 110 million trips in 2024, producing VND 840 trillion in receipts (USD 34.0 billion). Vietnamese professionals now blend work and leisure more frequently, making coastal cities such as Da Nang and Hoi An a magnet for long-stay travellers who generate mid-week occupancy that formerly dipped during shoulder seasons. Resorts update room layouts to include ergonomic desks, fibre-optic internet, and soundproofing, thereby capturing premium nightly rates from the work-cation segment. A growing middle class with rising disposable income displays a willingness to pay for bundled wellness, gastronomy, and cultural packages, lifting average daily rates even in second-tier destinations. Consistent domestic demand also provides hotels with predictable cash-flow streams that support debt servicing and expansion financing.

FDI-fuelled upscale hotel pipeline in Tier-2 coastal cities

Real-estate FDI inflows reached USD 6.31 billion in 2024, equal to 16.5% of the nation’s capital intake and heavily concentrated in upscale hospitality assets along emerging coastlines^{[3]VietnamPlus, “Vietnam’s visa overhaul to lure more tourists,” VietnamPlus.vn} . Expressway extensions and airport upgrades reduce travel time from major hubs, boosting weekend getaway appeal for domestic guests and improving charter viability for overseas operators. Upscale developers benefit from sturdier rate ceilings that hedge construction-cost inflation and deliver attractive IRRs compared with mid-scale projects. Local authorities provide reduced land-lease fees and fast-track licensing for investors who adopt sustainable-building techniques, aligning FDI objectives with ESG priorities.

Digital-nomad visas & co-living hybrids

Da Nang and Hoi An occupy two of Asia’s top five spots for digital nomads owing to low living costs, reliable digital infrastructure, and cultural vibrancy. Policymakers draft specialized visas that could grant one-year stays with remote-work permissions, formalizing the segment and simplifying compliance for operators. Co-living facilities incorporate features such as communal kitchens, coworking spaces, and organized social events, which contribute to an increase in the average length of stay. At the same time, these facilities maintain operational flexibility to accommodate short-term or transient bookings. Hotels embracing the model tap into higher occupancy stability and diverse ancillary revenue opportunities, including long-term parking and subscription-based wellness services.

OTA loyalty wars lowering customer-acquisition cost

In 2024, OTAs accounted for a substantial portion of national bookings. However, heightened competition among major platforms resulted in compressed commission rates and the introduction of bonus marketing credits to incentivize hotel partners. Forward-thinking operators use the favourable climate to renegotiate margin-friendly agreements that still secure premium search placement. Simultaneously, brand websites leverage AI-personalization engines to optimize conversion rates and drive growth in direct digital bookings, effectively decreasing their dependence on OTAs. Domestic travellers exhibit high price sensitivity yet show growing trust in hotel-owned apps that offer instant rewards and member-only rates. The dynamic fosters channel diversity, empowering hotels to manipulate inventory allocation based on real-time pace and market conditions.

Construction-material inflation squeezing project ROIs

Brick prices climbed from VND 1,200 to VND 1,300 (USD 0.047 to USD 0.051) per unit in early 2025, and sand prices doubled in some provinces due to overlapping motorway builds and metro extensions. Budget overruns force developers to renegotiate bank loans or reduce project scope, slowing room pipeline growth and constraining future supply. The Prime Ministerial Directive requires real-time reporting of material inventories and permits provisional imports; however, significant price relief is unlikely to be observed before 2026. Higher capex particularly threatens mid-scale projects where achievable ADRs cannot fully absorb cost spikes. Existing properties benefit from reduced competitive pressure, enjoying stronger pricing power across the Vietnam hospitality market.

Slow licensing for mixed-use strata-title resorts

Condotel schemes face an ambiguous land-use classification that complicates the issuance of ownership certificates, delaying unit sales that fund project cash flow. Recent land-law amendments promise clarity, but thousands of legacy units remain in limbo, restricting developer liquidity and dampening investor sentiment. Financial institutions tighten lending terms for mixed-use projects until legal bottlenecks are resolved, leading to deferments and cancellations that tighten supply in beach destinations. Local governments are piloting “one-stop shop” approval centres to streamline documentation, yet nationwide replication may span several years. Investors now favor pure-hotel formats or branded residences with clearer regulatory guidelines.

Segment Analysis

By Type: Chain hotels steer premium positioning.

Chain brands delivered a 9.87% CAGR through 2030, gaining ground even though independents still held 65.87% Vietnam hospitality market share in 2024. Hilton has expanded its portfolio with the introduction of 14 Tru by Hilton properties, while IHG has outlined plans to increase its national presence twofold within the next three years. Franchise agreements enable local operators to retain equity control while capitalizing on global distribution frameworks and loyalty programs. This approach enhances average daily rates when compared to equivalent independent entities. Corporate travel managers increasingly mandate brand-standard properties for duty-of-care compliance, reinforcing chain dominance in city hubs. Independent operators counter by joining soft-brand collections that preserve local character yet plug into centralized sales engines, thereby defending niche market positions.

Enhanced technology adoption further widens the performance gap. Chain hotels deploy integrated revenue-management systems that modify room rates multiple times a day based on live pace and competitor benchmarks. During soft demand periods, branded properties use loyalty points promotions to stimulate occupancy without heavy rate discounting. Independents face higher marketing costs per booking and often lack the analytical horsepower to optimize inventory, though cloud-based PMS tools are narrowing that disadvantage. Over time, consolidation will likely continue, particularly through soft conversions that keep hotel ownership fragmented but align operations with global standards to amplify the value proposition of the Vietnam hospitality market.

By Accommodation Class: Luxury growth outpaces peers

Luxury stock recorded an impressive 11.74% CAGR, mirroring global premium travel trends and Vietnam’s rising brand cachet among affluent Asian travellers. The development pipelines for upcoming rooms in coastal provinces predominantly target the luxury and upper-upscale segments, reflecting investor confidence in the continued demand for premium accommodations. Projects like Sofitel Diamond Crown Hai Phong fuse hotel suites with branded residences, spreading risk across diverse income streams while meeting escalating consumer expectations for space and exclusivity.

Mid-scale hotels remain the volume backbone, accounting for 47.38% of the Vietnam hospitality market size in 2024, but face pressure to elevate design and service to justify rate premiums over increasingly sophisticated budget offerings. Economy properties enjoy recession-resilient domestic patronage, yet must invest in digital self-check-in and standardized hygiene protocols to keep guests satisfied. Service apartments, meanwhile, carve out steady length-of-stay bookings from expatriates and project-based consultants who underpin non-seasonal cash flow. Luxury’s ascent encourages ancillary operators, yacht charters, private chefs, bespoke tour providers—to cluster in high-end zones, enriching destination ecosystems and reinforcing Vietnam’s aspirational tourism narrative.

Note: Segment shares of all individual segments available upon report purchase

By Booking Channel: Direct digital builds market share

OTAs still commanded 56.75% of the Vietnam hospitality market size in 2024, but direct digital bookings grew the fastest at 12.39% CAGR. Hotel groups deploy mobile-first websites, AI chatbots, and seamless payment integrations, doubling conversion rates compared with legacy desktop portals. Point-based loyalty programs facilitate repeat bookings and promote cross-property redemptions, thereby optimizing the net acquisition cost per guest. Corporate self-booking tools integrate negotiated rates, safeguarding consistency and data compliance for large enterprises. Group sales modules with dynamic packaging also attract MICE planners, who value real-time venue availability and bundled audiovisual pricing.

OTAs respond by rolling out fintech add-ons such as buy-now-pay-later and crypto wallets, catering to younger demographics and maintaining relevance. Smaller independents without marketing budgets still depend heavily on OTAs for international reach, but collective marketing coalitions and destination portals are emerging to diversify exposure. As algorithmic pricing permeates both channels, the competitive field will shift from rate parity to value-added differentials such as complimentary upgrades, resort credits, or curated experiences. Hotels that master data-driven personalization stand to capture an outsized share and higher lifetime value per guest across the Vietnam hospitality market.

Geography Analysis

Southern Vietnam retained 43.39% Vietnam hospitality market share in 2024, with Ho Chi Minh City generating robust weekday occupancy from corporate and MICE segments. The newly inaugurated Terminal 3 (T3) at Vietnam's Tan Son Nhat International Airport has expanded the airport's overall passenger handling capacity to 50 million annually. T3 is designed to accommodate 20 million passengers per year, with the capability to process 7,000 passengers during peak hours. Located in Ho Chi Minh City, the T3 development includes the construction of a state-of-the-art passenger terminal, a multi-level parking facility with integrated amenities, an elevated roadway system, and an aircraft apron. Yet high land prices constrain future supply, propelling developers to suburban and secondary cities where yields remain attractive. The Mekong Delta complements urban tourism with eco-river cruises and gastronomic trails that extend the average length of stay and broaden revenue channels.

Central Coast & Highlands, though smaller, surged at 10.27% CAGR through 2030, buoyed by expressway links and airport expansions such as Chu Lai PPP that cut travel time from Ho Chi Minh City to under one hour. Hue welcomed 3.4 million visitors in H1 2025, a 70% increase year-over-year, driven by UNESCO heritage marketing and digital ticketing innovations^{[4]VietnamPlus, “Hue redefines tourism with green innovation,” VietnamPlus.vn} . International brands entering Quang Binh, Quy Nhon, and Pleiku unlock upscale capacity where few rivals exist, capturing first-mover advantages and shaping destination standards. Government tourism campaigns like “Visit Vietnam Year 2025” allocate significant media spend to highlight eco-cultural circuits, further lifting the region’s visibility.

In Northern Vietnam, regions such as Ha Noi and Ha Long maintained stable occupancy levels within the high range, driven by consistent political, diplomatic, and industrial demand. Noi Bai International Airport’s Terminal 3 project will expand capacity to 50 million passengers by 2030, improving international connectivity and prompting hoteliers to plan airport-linked properties . Land scarcity inside Ha Noi’s historic core pushes new development toward the West Lake and Ha Dong districts, shifting visitor flows and potentially levelling ADRs across neighbourhoods. The region also benefits from proximity to China’s Guangxi province, facilitating short-haul leisure and cross-border business travel that underpins steady room-night flows in the Vietnam hospitality market.