The Vietnam hotel market is set for remarkable growth, with its size projected to increase by USD 4.1 billion from 2023 to 2028, according to a new report from Technavio. This expansion is anticipated at a CAGR of 19.4% during the forecast period, driven by tourism and rapid urban development across the country. The Asia-Pacific (APAC) region, with Vietnam as a key contributor of the global hotel market’s growth, underscoring Vietnam’s pivotal role in this sector.The report provides a comprehensive analysis of growth opportunities at regional levels, new product launches, the latest trends, and the post-pandemic recovery of the global market. Download PDF Sample Report
The Vietnam hotel market is riding a wave of opportunity as the country solidifies its position as a top travel destination in Southeast Asia. Technavio’s latest report, Vietnam Hotel Market 2024-2028, identifies the booming tourism sector both domestic and international as a primary growth driver. Vietnam welcomed millions of visitors in 2024, a trend expected to accelerate with government initiatives promoting cultural heritage and natural attractions like Ha Long Bay and Da Nang’s beaches. Coupled with this, rapid urbanization and rising disposable incomes are boosting demand for diverse accommodation options.
The Vietnam hotel market is thriving due to a perfect storm of tourism growth and infrastructure investment. “From luxury resorts to budget-friendly stays, the market is adapting to meet the needs of a diverse traveler base.”
Additional growth factors include increasing foreign direct investment in hospitality, the rise of eco-friendly and smart hotels, and the expansion of business travel due to Vietnam’s growing economy. Challenges such as seasonality and competition from short-term rentals like Airbnb exist, but the market’s upward trajectory remains strong, supported by demand and strategic development.
The Technavio report identifies several trends shaping the Vietnam hotel market:
Opportunities abound for hoteliers who can cater to niche markets, such as wellness tourism in Da Lat or adventure travel in Sapa. The growth of MICE (Meetings, Incentives, Conferences, and Exhibitions) tourism in Hanoi and Ho Chi Minh City also presents a lucrative avenue for business-focused properties.
Technavio’s report segments the Vietnam hotel market by type, application, and geography, providing a comprehensive view of its dynamics:
Type:
Application:
Geography:
Vietnam’s role in APAC to global hotel market growth is a standout finding in the Technavio report. The country’s tourism sector is flourishing, with cities like Ho Chi Minh City, Hanoi, and Da Nang emerging as hotspots. In 2024, Vietnam saw a record number of international arrivals, bolstered by visa-free policies and aggressive marketing campaigns. Urban development projects, including new airports and transportation networks, are enhancing accessibility, while coastal areas like Phu Quoc attract luxury resort investments.
“Vietnam is a shining star in APAC’s hospitality landscape,” the Technavio analyst noted. “Its blend of affordability, cultural richness, and modern infrastructure is drawing travelers and investors alike.”
The Vietnam hotel market is competitive, with a mix of global chains and local players driving innovation and expansion. Technavio’s report highlights 10 key companies influencing the industry:
These companies are investing in sustainable practices, digital check-in systems, and tailored guest experiences to capture market share in Vietnam’s dynamic hospitality sector.
For stakeholders in the hospitality and tourism industries, this report provides critical insights into the Vietnam hotel market’s growth potential. With a projected increase of USD 5.12 billion by 2029, the market offers a wealth of opportunities for investment, expansion, and innovation. Hotel operators, developers, and policymakers who leverage Vietnam’s tourism momentum and urban growth can position themselves as leaders in one of APAC’s most promising markets, delivering value to travelers and boosting economic development.
Technavio is a leading global technology research and advisory company, delivering actionable market insights through its extensive library of over 17,000 reports, covering 800 technologies across 50 countries. With a team of more than 500 specialized analysts, Technavio supports enterprises of all sizes, including over 100 Fortune 500 companies, in identifying opportunities and optimizing their market strategies.
Safe and Secure SSL Encrypted