Key Insights

The Vietnamese hospitality industry, valued at $5.16 billion in 2025, is experiencing robust growth, projected to expand at a Compound Annual Growth Rate (CAGR) of 13.94% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, Vietnam's burgeoning tourism sector, driven by increasing international and domestic travel, significantly boosts demand for hotel accommodations across various segments. Secondly, the rise of budget-conscious travelers and the expanding middle class are driving the growth of budget and economy hotels, while simultaneously fueling demand for mid-scale and luxury options catering to discerning travelers. The increasing popularity of service apartments also contributes to the overall market growth, offering flexible and extended-stay options. Finally, strategic investments in infrastructure development, improved connectivity, and government initiatives supporting the tourism sector further enhance the industry's attractiveness.

The competitive landscape is dynamic, featuring both international giants like InterContinental Hotels Group and Marriott International, alongside prominent domestic players such as Vinpearl and Saigon Tourist. The prevalence of loyalty programs offered by major hotel brands enhances customer retention and attracts repeat business. However, potential challenges include maintaining consistent service quality amid rapid expansion, managing seasonality in tourist arrivals, and adapting to evolving consumer preferences. Sustained growth will likely depend on strategic partnerships, effective marketing campaigns focusing on the unique cultural experiences Vietnam offers, and continuous investment in technological advancements to enhance guest experience and operational efficiency. The market segmentation, encompassing chain hotels, independent hotels, and diverse accommodation types (budget, mid-scale, luxury, and service apartments), reflects the industry’s diverse appeal and caters to a broad spectrum of traveler needs and budgets.

This comprehensive report provides a detailed analysis of the Vietnam hospitality industry, covering market structure, competitive dynamics, trends, and future growth projections from 2019 to 2033. The study period covers historical data (2019-2024), with the base year set at 2025 and a forecast period extending to 2033. This report is essential for investors, industry professionals, and businesses seeking to understand and capitalize on opportunities within Vietnam's dynamic hospitality sector. The report values are expressed in Millions of USD unless otherwise stated.

Hospitality Industry in Vietnam Market Structure & Competitive Dynamics

The Vietnamese hospitality market exhibits a blend of established international players and rapidly growing domestic chains. Market concentration is moderate, with a few major players like InterContinental Hotels Group, Marriott International, and Vinpearl holding significant market share, but numerous smaller independent hotels and boutique properties also contribute substantially. The industry's innovation ecosystem is evolving, with a focus on technology integration and sustainable practices. Regulatory frameworks are generally supportive of industry growth, although some bureaucratic processes can present challenges. Product substitutes, such as Airbnb and other home-sharing platforms, are gaining traction, particularly in the budget and mid-scale segments. End-user trends show a growing preference for experiential travel, wellness tourism, and digitally enabled services.

M&A activity in the Vietnamese hospitality sector has been moderate in recent years, with deal values ranging from xx Million to xx Million. Key transactions include consolidations among smaller chains and acquisitions by larger international players seeking to expand their footprint.

• Market Share (Estimated 2025):
  • Vinpearl: 15%
  • InterContinental Hotels Group: 12%
  • Marriott International: 10%
  • Independent Hotels: 40%
  • Others: 23%

Hospitality Industry in Vietnam Industry Trends & Insights

The Vietnamese hospitality market is experiencing robust growth, driven by factors such as rising disposable incomes, increasing tourism, and government initiatives to promote the sector. The Compound Annual Growth Rate (CAGR) is projected at xx% from 2025 to 2033. Technological disruptions are transforming the guest experience, with the adoption of online booking platforms, mobile check-in/check-out, and personalized services becoming increasingly prevalent. Market penetration of online travel agents (OTAs) is steadily increasing, exceeding xx% in 2025. Consumer preferences are shifting towards unique experiences, wellness offerings, and sustainable tourism options. Competitive dynamics are intensifying, with both international and domestic players investing in new properties and service improvements to attract and retain guests. Luxury and upscale segments are demonstrating particularly strong growth fueled by rising high-net-worth individuals and increased international tourism.

Dominant Markets & Segments in Hospitality Industry in Vietnam

The southern region of Vietnam, particularly Ho Chi Minh City and surrounding areas, remains the most dominant market for the hospitality industry. Key drivers for this dominance include a robust economy, well-developed infrastructure, and a high concentration of business and leisure travelers. Hanoi, the capital city, and other coastal areas are also experiencing significant growth.

• By Type: Chain hotels hold a larger market share compared to independent hotels, driven by brand recognition, consistent service quality, and loyalty programs.
• By Segment: The luxury hotel segment showcases exceptional growth fueled by increasing affluence and tourist demand for high-end experiences. However, the budget and economy segments maintain considerable market size driven by price-conscious travelers. The service apartment sector shows steady growth catering to extended-stay travelers.

Key Drivers of Dominance:

• Strong Economic Growth: Vietnam’s consistent economic expansion has fueled tourism and boosted disposable incomes.
• Government Initiatives: The Vietnamese government actively promotes tourism development through infrastructure improvements and supportive policies.
• Strategic Location: The country’s central location within Southeast Asia makes it a popular destination for regional and international tourists.

Hospitality Industry in Vietnam Product Innovations

Recent innovations include the integration of smart technologies in hotel rooms, enhancing guest convenience and personalized experiences. The development of eco-friendly hotels and resorts aligns with growing sustainability concerns among travelers. Many hotels are adopting mobile-first strategies to streamline operations and engage guests through digital channels. These innovations demonstrate the industry's commitment to adapt to changing technologies and market demands.

Report Segmentation & Scope

This report segments the Vietnam hospitality market based on hotel type (Chain Hotels, Independent Hotels) and accommodation segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid Scale Hotels, Luxury Hotels). Each segment's market size, growth projections, and competitive dynamics are analyzed in detail. Growth projections vary based on factors specific to each segment, with the luxury and mid-scale segments exhibiting higher growth rates than the budget segment.

Key Drivers of Hospitality Industry in Vietnam Growth

The growth of Vietnam's hospitality industry is driven by a combination of factors. These include the country's burgeoning tourism sector, rising disposable incomes, supportive government policies encouraging foreign investment and infrastructure development, and the increasing demand for unique and authentic travel experiences. Improvements in infrastructure, such as new airports and improved transportation networks, also contribute significantly to this growth.

Challenges in the Hospitality Industry in Vietnam Sector

The industry faces challenges such as a fluctuating tourism landscape affected by global events, stiff competition from both domestic and international brands, and workforce shortages. The impact of these challenges varies by segment; however, supply chain disruptions can affect operational costs across the board, and regulatory complexities may increase operational burdens for businesses.

Leading Players in the Hospitality Industry in Vietnam Market

• InterContinental Hotels Group
• Vinpearl
• Saigon Tourist
• Marriott International
• Ascott Hotels
• Accor Hotels
• Diamond Bay Resort & Spa
• Muong Thanh Hospitality
• H&K Hospitality
• A25 Hotel Group

Loyalty Programs: At least 6-3 major hotel brands offer loyalty programs within Vietnam.

Key Developments in Hospitality Industry in Vietnam Sector

• November 2023: Marriott International launched three upscale hotels: Nha Trang Marriott Resort & Spa, Danang Marriott Resort & Spa, and Renaissance Hoi An Resort & Spa. This expansion strengthens Marriott's presence in key tourist destinations.
• August 2023: Fusion Hotel Group opened Ixora Ho Tram by Fusion, a luxury wellness resort. This new offering caters to the growing demand for wellness tourism in Vietnam.

Strategic Hospitality Industry in Vietnam Market Outlook

The Vietnamese hospitality industry is poised for continued growth over the forecast period. Strategic opportunities lie in expanding into emerging tourist destinations, focusing on sustainable tourism practices, investing in technological advancements, and developing unique hospitality experiences that cater to the evolving preferences of travelers. The luxury and wellness segments are expected to remain particularly lucrative, offering significant growth potential for investors and businesses alike.

Hospitality Industry in Vietnam Segmentation

• 1. Type
  • 1.1. Chain Hotels
  • 1.2. Independent Hotels
• 2. Segment
  • 2.1. Service Apartments
  • 2.2. Budget and Economy Hotels
  • 2.3. Mid and Upper Mid Scale Hotels
  • 2.4. Luxury Hotels

Hospitality Industry in Vietnam Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific