Vietnam’s resort and housing sectors are undergoing a remarkable transformation, with the country now leading Southeast Asia in hospitality industry growth and making ambitious moves to address mounting housing demands. According to the latest data from Savills Hotels, the revenue per available room (RevPAR) in Vietnam’s resort industry has surged by 17% compared to the same period last year, marking the strongest recovery phase since the COVID-19 pandemic. That’s no small feat for a country that, like much of the world, saw its tourism and real estate sectors battered by years of uncertainty.
As reported by Kinh tế Việt Nam, this rebound is not just a blip. Vietnam is emerging as one of the fastest growing resort markets in Southeast Asia, with both international and domestic tourism playing pivotal roles. Hotels in major cities like Hanoi and Ho Chi Minh City have posted improved business results, thanks largely to increased room prices. Meanwhile, coastal destinations—Nha Trang, Phu Quoc, Cam Ranh, and Ha Long—have witnessed a sharp uptick in room occupancy, signaling renewed traveler confidence and a thirst for Vietnam’s sun-soaked shores.
“Vietnam’s resort market is entering a new growth cycle with clear improvements in average room rates and occupancy,” said Mauro Gasparotti, Senior Director for Southeast Asia at Savills Hotels. He explained that while many localities previously faced significant pressure from new supply, which created headaches for hotel operators, positive market signals have recently led to optimistic results at most destinations. “The sector is now moving into a phase that requires new development plans, with greater attention to service quality, especially at key destinations like Ho Chi Minh City, Hanoi, and coastal tourist cities such as Da Nang and Phu Quoc,” Gasparotti added, according to Kinh tế Việt Nam.
This robust recovery is happening on multiple fronts. In the past, an influx of new hotels and resorts made it tough for existing operators to maintain profitability. Now, with travel rebounding and the market stabilizing, there’s renewed optimism. The industry is also seeing a shift in focus—not just on quantity, but on quality. Operators are increasingly attentive to service standards, design innovation, and diversified offerings, from lifestyle hotels to long-stay accommodations and branded residences.
Vietnam’s demographic trends are fueling this momentum. According to Savills Hotels, more than half of Vietnam’s population is expected to join the middle class by 2035, bringing higher incomes and increased consumption capacity. “The rise of the middle class, especially among younger generations, has stimulated tourism activities,” Uyên Nguyễn, Deputy Director at Savills Hotels, told Kinh tế Việt Nam. To tap into this potential, hotel operators are pushing brands that meet the evolving needs and tastes of this burgeoning market.
Alongside domestic growth, international arrivals are picking up speed, laying the groundwork for a more diverse hospitality landscape. Vietnam is now home to 21 branded residence projects—properties that combine luxury hotel services with private ownership—ranking second in Southeast Asia, just behind Thailand. Globally, Vietnam and Thailand are among the top 10 markets for branded residence supply, accounting for 6% and 5% of projects respectively, according to Savills Hotels. These developments highlight Vietnam’s rising appeal not only as a travel destination but also as a hotspot for real estate investment and lifestyle innovation.
Brand recognition, international distribution networks, and standardized operating procedures are driving more local operators to partner with global hospitality giants. This trend is also extending into residential real estate, where investors are keen on branded residences that promise high design quality and premium service standards. In Asia, this segment is experiencing strong growth, and Vietnam is right at the center of the action.
Yet, the story isn’t just about luxury and leisure. On August 19, 2025, in Quảng Trị province, a groundbreaking ceremony was held for three projects focused on social housing, resort areas, and industrial park infrastructure. This event marked the 80th anniversary of the August Revolution and National Day, underscoring the government’s commitment to inclusive development. The need for affordable housing, especially for workers and low-income groups in the Southeast region, is becoming increasingly urgent. On September 22, 2025, Prime Minister Pham Minh Chinh called for swift action to reduce commercial housing prices in line with market realities and people’s incomes, emphasizing the principle of “harmonious benefits, shared risks.”
Policy innovation is at the forefront of these efforts. On September 24, 2025, requests were made to adjust policies and mechanisms for housing development, with a particular focus on the social housing segment—seen as crucial for curbing overall housing prices. The same day, the People’s Committee of Bac Ninh province issued a decision detailing cases where people who own homes far from their workplace are eligible for social housing support policies, reflecting an effort to make housing assistance more responsive to real-world needs.
Land management and legal frameworks are also under the microscope. On September 23, a working group from the Department of Land Management and Departments of Agriculture and Environment tackled hundreds of petitions and land-related issues at the local level. The Ministry of Justice, on September 22, organized a workshop to identify bottlenecks and propose solutions related to the Land Law, an acknowledgment of the complex challenges facing Vietnam’s rapidly evolving real estate sector.
Economic policy is playing a role as well. The Federal Reserve’s recent interest rate cut—the first of three expected this year—could provide a much-needed boost to Vietnam’s housing market, making mortgages more accessible and stimulating demand. However, not all innovations are within reach for the average Vietnamese. While specialized health care apartment projects have appeared near family residences, their costs often exceed what most people can afford, highlighting a gap between aspiration and reality.
It’s not all smooth sailing. Some cities, like Phan Rang in Ninh Thuan province, are lagging behind their former status and the progress seen in more dynamic resort hubs such as Nha Trang and Cam Ranh. This uneven development serves as a reminder that while the national picture is brightening, localized challenges remain.
Amid these developments, the Vietnamese government and private sector are working hand in hand to balance growth with inclusivity, luxury with accessibility, and innovation with tradition. The country’s resort and housing sectors are not just bouncing back—they’re evolving, adapting, and setting new standards for the region. For Vietnam, the road ahead looks promising, with both opportunity and responsibility on the horizon.
