Table of Contents 1. Hospitality sector: Growth supported by stable economic conditions 2. Geopolitical impacts: Short-term challenges for global travel 3. Phu Quoc accelerates development ahead of APEC 4. Long-term growth direction: Building a sustainable foundation 5. Branded residences: Accelerating growth in urban areas

OVERVIEW: A STRONG RECOVERY ACROSS THE REGION

In 2025, Vietnam continued to demonstrate a strong recovery, outperforming most markets across the Asia–Pacific region. Total international arrivals reached 21.1 million, marking a 20.4% year-on-year increase—significantly higher than the regional average growth rate of 5%. 

Notably, 2025 was also the first year Vietnam surpassed Thailand to become the top destination for Chinese travellers—an important milestone in the regional tourism landscape. 

Hospitality sector: Growth supported by stable economic conditions 

The hospitality sector in Southeast Asia continues to benefit from stable economic conditions, supporting travel demand and driving development activity across key markets. 

In Vietnam, the market stands out as one of the region’s bright spots, with Revenue per Available Room (RevPAR) rising by nearly 15% compared to 2024. Improved occupancy rates and shifts in source markets have further strengthened Vietnam’s position as a leading destination in the region. 

Looking ahead to 2026, Vietnam aims to welcome approximately 25 million international visitors, representing a projected growth of 18.1% year-on-year. This momentum is driven by stable demand from key source markets, alongside efforts to enhance national competitiveness, including more open visa policies, expanded international air connectivity, significant infrastructure investment, and strengthened destination marketing. 

Geopolitical impacts: Short-term challenges for global travel 

Despite ongoing demand recovery, recent geopolitical tensions are creating short-term challenges for global tourism. The Middle East plays a crucial role as an international transit hub, connecting Europe with the Asia–Pacific region and facilitating substantial intercontinental passenger flows. 

As a result, instability in this region is expected to have notable impacts on global travel patterns. 

At the 2026 Meet The Experts (MTE), the region’s largest annual real estate and hospitality conference held in HCMC, Mauro Gasparotti, Senior Director, Southeast Asia of Savills Hotels comments, “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, where travellers may increasingly favour closer, more accessible destinations.” 

Jesper Palmqvist, Regional Vice President, Asia-Pacific at STR CoStar, notes, “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.” 

Phu Quoc accelerates development ahead of APEC 

Over the next three years, new hotel supply is expected to remain concentrated in coastal destinations, with Da Nang and Phu Quoc leading in future pipeline volume. 

In Phu Quoc, development is accelerating in preparation for the APEC. According to Savills Hotels, more than 10,000 rooms-equivalent to nearly 70% of the island’s existing supply-are under development and expected to be completed before the end of 2027. 

Mauro adds, “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.” 

Long-term growth direction: Building a sustainable foundation 

To prepare for the next growth cycle, the market requires structural changes to support long-term growth and sustainable demand across both residential and hospitality segments. 

Hieu Do, CEO of VinaLiving, explains, “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, where content, culture, and activities become core products, helping destinations generate sustainable demand and overcome seasonality.” 

Branded residences: Accelerating growth in urban areas 

Branded residences continue to be a key highlight of the global real estate market, with a compound annual growth rate of 10.9%-double that of the broader hospitality and real estate sectors. By the end of 2025, there were approximately 910 operational branded residence projects worldwide, with the top 10 hotel groups accounting for over 400 of them. 

In Vietnam, this segment is expanding rapidly in the two major urban centres—TP.HCM and Hà Nội-while also diversifying across segments beyond the ultra-luxury category. 

Uyen Nguyen, Associate Director, Savills Hotels, adds, “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.  As a result, branded residences are emerging as a key long‑term strategy for developers anticipating changing buyer profiles.”