Striving Towards a Sustainable Future in Viet Nam’s Hospitality & Real Estate

Ha Noi – Meet The Experts (MTE), the premier business conference for Viet Nam’s real estate and hospitality sectors, was held on 24 October 2024 in Ha Noi under the theme “Wellness Real Estate.” The biannual event brought together leaders from across the industry, including investors, hotel owners, management companies, design firms, and consultants. MTE fosters collaboration, provides actionable insights, and offers networking opportunities to help stakeholders capitalize on growth prospects and prepare for the next cycle in Viet Nam’s dynamic real estate and hospitality markets.

Viet Nam’s tourism sector has seen significant demand from international markets, particularly South Korea. In the first nine months of 2024, the country welcomed approximately 3.4 million South Korean travellers, reflecting a 30.3% year-on-year increase and a 7.2% rise compared to the same period in 2019. This surge positioned South Korea as the leading source market for international visitors to Viet Nam, surpassing China and accounting for 27% of total arrivals. Key destinations such as Nha Trang–Cam Ranh and Da Nang continue to see a strong presence of South Korean tourists, who represent 56% and 40% of international arrivals, respectively.

India is also emerging as a key growth market, with its share of visitors increasing from 1% in the first nine months of 2019 to 3% in the same period in 2024.

Viet Nam’s hospitality sector is well on its way to a full recovery. Most destinations have moved beyond the challenges of stagnant demand and are now focused on sustainable growth.

Viet Nam remains a top destination for Asian tourists, particularly South Koreans who seek alternative beach getaways to Thailand. The country’s tourism offerings are evolving, with new brands and resorts entering the market. The luxury segment is performing exceptionally well, and we’re seeing renewed interest in second-home markets, which had been affected by negative sentiment in recent years. Additionally, residential developments that feature leisure amenities are gaining traction. This trend presents local developers with a unique opportunity to deliver enhanced value to buyers, improving their well-being and comfort. Mauro Gasparotti, Director of Savills Hotels and creator of the MTE series

Key Insights and Emerging Trends

At the event, senior representatives from Accor Hotels Group, BIM Group, T&T Hospitality, Vinpearl Holding Company, M Village, SOJO by ROX, and VinHMS shared valuable insights into the state of Viet Nam’s hospitality market. The panel focused on the ongoing trends of hotel rebranding and repositioning, as owners and operators adapt to changing market demands. Discussions also highlighted alternative management models and rental agreements as increasingly popular options for developers seeking greater operational flexibility.

One notable trend is the rising demand for hotel leases from tour operators, driven by the recovery of group travel from Asian and select European markets. Tour operators and travel agencies are looking to upgrade their accommodation offerings, primarily targeting properties with 100 to 150 rooms in popular tourist destinations that offer a range of amenities. By refining their accommodation portfolios, these operators are gaining a competitive edge.

2025 Outlook for Key Markets

The panel also offered an outlook for 2025, reviewing the performance of key markets, including Ho Chi Minh City, Ha Noi, and coastal destinations. Viet Nam aims to attract 25 million international visitors in 2025, building on the momentum of 2024, which saw nearly 12.7 million international tourists in the first nine months—making solid progress towards this year’s target of 18 million.

Mauro noted, Achieving this ambitious goal will require strong collaboration between public and private stakeholders. Airports and airlines will play a pivotal role, working closely with hotels, travel agencies, and tour operators to ensure seamless connectivity. Additionally, Viet Nam must launch more dynamic destination marketing campaigns to attract tourists to less crowded regions, rather than relying solely on established hotspots. By distributing traffic more evenly, we can lay the foundation for long-term, sustainable growth.

Lessons from Thailand’s Tourism Success

Drawing parallels with regional success stories, Uyen Nguyen, Head of Consultancy at Savills Hotels, highlighted Thailand’s tourism trajectory: In 2014, Thailand welcomed nearly 25 million international tourists. By maintaining a compound annual growth rate (CAGR) of around 10% from 2014 to 2019, the country saw its international arrivals climb to nearly 40 million. This growth was driven by Thailand’s National Tourism Development Plan, which prioritised infrastructure development, the creation of new tourism products, and enhanced hospitality services. Strategic marketing campaigns, such as Amazing Thailand, successfully targeted high-growth markets like China and India. Moreover, the government’s expansion of visa exemptions and simplified visa-on-arrival processes played a key role in making the country more accessible to international tourists.

Innovative Concepts and Industry-Shaping Strategies

Keynote speeches from representatives of VinaCapital, HotStats, and Savills Hotels provided insights into macroeconomic trends, hotel trading performance on both global and local scales, the appeal of luxury retail brands in mixed-use developments, and the latest innovations in branded residences. The presentations also spotlighted groundbreaking hotel concepts, with speakers from Radisson Hotel Group, Cloud Collective, and Dark Horse Architecture presenting case studies on lifestyle hotels, luxury glamping, and sustainable resort models in Bali. These thought-provoking presentations offered valuable strategies for the future of the hospitality industry.

Senior professionals from Savills, TCC Land International, Hoiana Resort & Golf, Alphanam Group, Meliá Hotels International, MIK Group Viet Nam, and Indochina Kajima delved into the defining elements of ultraluxury projects, identifying the key differentiators that set these developments apart in an increasingly competitive market. The discussion also provided an overview of Viet Nam’s branded residence landscape, examining its current performance and future potential. Special attention was given to urban branded residences in Ha Noi and Ho Chi Minh City, with an in-depth analysis of how branding can enhance property value. The conversation also emphasised the rising importance of wellness features in hospitality and real estate, showing how these elements are being integrated to meet evolving consumer demands and elevate guest experiences.

A Commitment to Sustainable Growth

WeHub and Savills Hotels extend their deepest gratitude to all partners, guests, and speakers who contributed to the success of MTE 2024 in Ha Noi. Dedicated to supporting Viet Nam’s journey towards sustainable growth in real estate and hospitality, MTE events continue to provide an essential platform for industry professionals to stay connected, informed, and ready to thrive in an ever-evolving market.

For any other enquiries, please contact:

Pham Thi Thuy Nhung (Ms.)
Head of Marketing and Business Development
Savills Hotels Asia Pacific
T: +84 934 345 630
E: [email protected]

Tu Thi Ngoc Thuy (Ms.)
Marketing Manager
Savills Hotels Asia Pacific
T: +84 903 898 450
E: [email protected]