Report Overview

Expanding tourism infrastructure, rising domestic travel, foreign investment, visa reforms, luxury resort growth, cost-effective business travel, and eco-tourism appeal driving the growth of Vietnam Hospitality Market during the forecast period between 2025 and 2031.

Vietnam Hospitality Market – Industry Trends & Forecast Report, 2031

Vietnam Hospitality Market size was estimated at USD 6.13 billion in 2024. During the forecast period between 2025 and 2031, Vietnam Hospitality Market size is projected to grow at a CAGR of 12.5% reaching a value of USD 13.97 billion by 2031. The Hospitality Market in Vietnam is driven by expanding tourism infrastructure, rising domestic and international travel, and increased foreign investment in hotel chains. Government support through visa reforms and destination marketing enhances accessibility. The sector benefits from cost-effective business travel, luxury resort growth, and eco-tourism appeal. Strategic partnerships with global hotel brands and urban development initiatives further strengthen market momentum. Additionally, improved connectivity and diversified accommodation options contribute to sustained industry growth.

Hospitality – Overview

Hospitality encompasses the reception and entertainment of guests, ensuring comfort, service, and a welcoming atmosphere. It spans industries like lodging, food services, travel, and tourism, playing a crucial role in economic growth. The sector thrives on customer experience, cultural exchange, and service excellence. Technological advancements, sustainability initiatives, and evolving consumer preferences shape their future. From luxury hotels to budget accommodations, hospitality adapts to market demands, fostering global connectivity and enriching travel experiences.

Vietnam Hospitality Market  

Growth Drivers

Expanding International Air Connectivity

Vietnam Hospitality Market benefits from improved air connectivity, with upgraded airport infrastructure and expanded flight routes enhancing accessibility. Increased international arrivals drive demand for hotels, resorts, and tourism services. Government initiatives, including visa reforms and airline partnerships, further boost inbound travel. Key destinations like Ho Chi Minh City and Da Nang see rising visitor numbers, strengthening market growth. The sector thrives on cost-effective travel options, supporting business tourism and leisure expansion.

Challenges

Skilled Labor Shortages

Vietnam Hospitality Market faces a shortage of skilled labor due to gaps in vocational training, limited industry-specific education, and high turnover rates. The demand for qualified professionals in hotel management, culinary arts, and customer service exceeds supply, impacting service quality and operational efficiency. Additionally, competition for talent from other industries and migration trends further strain workforce availability. Addressing these challenges requires investment in training programs and stronger collaboration between educational institutions and hospitality businesses.

Impact of Escalating Geopolitical Tensions on Vietnam Hospitality Market  

Escalating geopolitical instability affects Vietnam Hospitality Market by disrupting international travel patterns, reducing foreign tourist arrivals, and increasing operational risks. Supply chain disruptions raise costs for hotel operations, while investor confidence weakens due to uncertainty. Visa restrictions and diplomatic shifts impact inbound tourism, particularly from key markets like China and Russia. Additionally, fluctuating currency values and trade policies influence pricing strategies, making market recovery challenging. Strategic diversification and resilience planning are essential for sustaining growth amid global uncertainties.

Vietnam Hospitality Market  

Segmental Coverage

Vietnam Hospitality Market – By Hotel Type

By hotel type, Vietnam Hospitality Market is divided into Chain Hotels, Independent Hotels, Luxury Resorts, and Boutique Hotels segments. The independent hotels segment holds the largest share of Vietnam Hospitality Market by hotel type. The segment’s market dominance is driven by the country’s vibrant tourism industry, with a strong preference among both domestic and international travelers for culturally rich, locally managed accommodations. Independent hotels often offer unique experiences, competitive pricing, and are more widespread across secondary cities and rural tourist destinations. Unlike chain hotels or luxury resorts, which are concentrated in major urban centers or high-end destinations, independent hotels cater to a broader range of visitors, making them the most prevalent and preferred choice in Vietnam’s dynamic and growing hospitality landscape.

Vietnam Hospitality Market – By Accommodation Category

Based on accommodation category, Vietnam Hospitality Market is divided into Budget & Economy Hotels, Mid-Scale Hotels, Business Hotels, and Leisure Hotels segments. The leisure hotels segment holds the largest share of Vietnam Hospitality Market by accommodation category. This dominance is driven by the country's booming tourism industry, supported by its rich cultural heritage, scenic landscapes, and coastal destinations like Da Nang, Nha Trang, and Phu Quoc. Increased domestic travel and a rebound in international arrivals post-pandemic have further fueled demand for leisure-oriented accommodations. Additionally, rising disposable incomes among Vietnamese consumers and enhanced infrastructure development have made leisure travel more accessible. These factors position Leisure Hotels as the most prominent segment, surpassing Budget & Economy, Mid-Scale, and Business Hotels in market size and growth potential.

Vietnam Hospitality Market – By Alternative Lodging

On the basis of alternative lodging, Vietnam Hospitality Market is divided into Service Apartments, Hostels, Eco-Resorts, and Vacation Rentals segments. The service apartments segment holds the largest share of Vietnam Hospitality Market by alternative lodging, due to a growing demand from business travelers and long-stay tourists seeking comfort, privacy, and amenities comparable to home. With Vietnam’s rising urbanization and increasing foreign direct investment, cities like Ho Chi Minh City and Hanoi have seen a surge in extended-stay accommodations. The segment’s strong appeal to corporate clients, expatriates, and digital nomads contributes significantly to its continued expansion, making it the leading category within Vietnam’s diverse and evolving hospitality landscape.

Competitive Landscape

Major companies operating in Vietnam Hospitality Market include AccorHotels, Marriott International, InterContinental Hotels Group (IHG), Hilton Hotels & Resorts, Vinpearl Hotels & Resorts, Fusion Hotel Group, Wyndham Hotels & Resorts, Best Western Hotels & Resorts, Minor Hotels, Melia Hotels International, and Radisson Hotel Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Hotel Type

• Chain Hotels

• Independent Hotels

• Luxury Resorts

• Boutique Hotels

By Accommodation Category

• Budget & Economy Hotels

• Mid-Scale Hotels

• Business Hotels

• Leisure Hotels

By Alternative Lodging

• Service Apartments

• Hostels

• Eco-Resorts

• Vacation Rentals