Vietnam Hospitality and Tourism Industry Overview 2025

As Vietnam heads into the final quarter of 2025, the country’s hospitality and tourism sectors continue to rebound and evolve after a turbulent few years. Supported by government policies, new infrastructure, and surging demand from both domestic and international travelers, Vietnam is reinforcing its position as one of Southeast Asia’s most dynamic tourism markets.

Tourism Market Overview

In August 2025, Vietnam welcomed approximately 1.68 million international visitors, reflecting a 7.8% increase compared to July and a 16.5% rise year-on-year. By the end of August, total international arrivals for the first eight months of 2025 reached 13.9 million, representing a strong 21.7% year-on-year increase. In September, arrivals dipped to 1.52 million, a 9.6% month-on-month decline due to seasonal patterns, but still marked a 19.5% increase compared to September 2024. These figures highlight the continued recovery and robust demand for Vietnam as a leading travel destination in the region.

Air travel continued to dominate, with over 13.1 million visitors arriving by air, followed by 2.1 million by land and nearly 191,000 by sea. Asia remained Vietnam’s primary source market, contributing over 12.24 million arrivals, with exceptional year-on-year growth from the Philippines (+192.2%), China (+143.9%), and India (+142.9%). European markets also bounced back strongly, particularly Russia, which saw an extraordinary increase of 273%, and Poland at 146%. Steady gains were observed from Oceania, the Americas, and even Africa, which contributed more modest, yet growing, arrival numbers.

Domestically, tourism continues to play a stabilizing role. While full-year figures for 2025 are still unfolding, Vietnam recorded over 101,000 domestic tourism-related trips in 2022. Since then, that number has steadily climbed as more Vietnamese travelers explore their own country—often venturing beyond traditional tourist cities into emerging destinations and lesser-known cultural regions.

Infrastructure & Government Initiatives

Vietnam’s tourism rebound has been matched by strong government engagement and infrastructure investment. The expansion of international and regional flight routes—especially into secondary cities—has been pivotal. The recent approval of Sun Phu Quoc Airways, a new carrier aiming to enhance domestic connectivity, signals growing confidence in the tourism aviation sector.

Visa policy reforms have also played a significant role, with extended visa exemptions and electronic visa options boosting accessibility for key markets. This policy shift, aligned with Vietnam’s national tourism development strategy, aims to attract 18 million international visitors by year’s end.

Meanwhile, central and provincial authorities are investing heavily in road infrastructure, urban development, and last-mile connectivity, particularly in areas earmarked for tourism development. These efforts are designed to ease access to emerging destinations, distribute visitor traffic more evenly, and reduce pressure on hotspots like Hoi An, Da Nang, and Ha Long Bay.

Source: Vietnam National Statistics Office

Hotel Market Performance

Vietnam’s hotel sector is undergoing transformation—both in scale and refinement. Major cities such as Hanoi and Ho Chi Minh City continue to lead in room supply and performance. As of mid-2025, Ho Chi Minh City has over 25,000 rooms in operation across more than 260 properties, with international brands accounting for nearly one-third of total keys.

As of 2025, the country has 191 hotel projects comprising approximately 49,800 rooms under construction, with completion expected by 2028. Notably, nearly 75% of these projects fall within the midscale to upscale segments, highlighting a clear shift toward higher-quality offerings that cater to both international tourists and the rising domestic middle class. This development trend reflects the industry's confidence in Vietnam’s long-term tourism potential and the increasing influence of global hotel brands entering the market.

Source: THP; Aspecture Global Research

In Hanoi, hotel performance continues to improve steadily. As of YTD August 2025, the city recorded an occupancy rate of 59.5%, up from 54.7% in the same period of 2024. The average daily rate (ADR) rose to USD 124, compared to USD 112 the previous year, while RevPAR increased from USD 61 to USD 74. This growth reflects the return of corporate and MICE travel, along with gradually recovering international demand—though performance still varies by season and segment.

In Ho Chi Minh City, the market showed even stronger momentum. Occupancy reached 65.7% by August 2025, up from 57.8% a year earlier. ADR improved to USD 121, compared to USD 115 in 2024, and RevPAR climbed from USD 67 to USD 79. These gains point to increasing demand across both business and leisure segments, supported by improved air connectivity and growing domestic travel.

In coastal resort destinations, performance has varied. While areas like Phu Quoc and Da Nang have benefited from renewed tourist interest and improved connectivity, overdevelopment in some regions has placed downward pressure on rates. The rise of independent and boutique hotels continues, although international chains are gaining ground, particularly in the upper midscale and luxury segments.

Source: STR

Visitor Behavior & Demand Drivers

Leisure travel remains the primary purpose of visit, although business travel and MICE tourism are returning as Vietnam hosts more conferences, trade shows, and corporate events. The average length of stay varies across regions: short city breaks typically last 2–3 nights, while resort stays in Phu Quoc or Nha Trang can stretch to 5 nights or more.

Travel motivations are increasingly shaped by a desire for authentic, cultural, and nature-based experiences. As such, tourism operators are pivoting toward experiential and sustainable offerings—community-based travel, ecotourism, wellness retreats, and agro-tourism are growing in popularity, especially among younger and higher-spending demographics.

Demand is also being generated by external factors such as favorable exchange rates, improved travel advisories, and growing interest in Vietnam as a post-COVID safe, welcoming, and affordable destination. Events, festivals, and cruise tourism are also drawing new visitor segments.

Emerging Destinations & New Priorities

Beyond the well-known cities and resorts, Vietnam’s central highlands, mountainous north, and Mekong Delta are rising in profile. Provinces like Ha Giang, Cao Bang, and Dak Lak are beginning to attract both domestic and international travelers drawn by untouched landscapes and unique cultural experiences.

The government’s tourism master plan prioritizes these areas for sustainable development, aiming to redistribute the economic benefits of tourism and avoid overtourism. These emerging areas represent high-potential opportunities for hotel developers and tourism entrepreneurs who are willing to innovate and invest in new kinds of travel experiences.

Challenges Ahead

Despite encouraging numbers, several challenges remain. Vietnam still suffers from a lack of skilled hospitality labor, particularly in rural regions. Infrastructure outside major cities remains uneven, and some destinations are facing issues of overcrowding, environmental degradation, and insufficient waste management.

Operational costs are also rising. Inflation, energy prices, and increasing guest expectations are putting pressure on hotel margins. For independent hotels, competing with international brands on service quality, marketing, and digital distribution continues to be a hurdle.

Climate risks—including typhoons and flooding—pose additional threats, especially in central coastal regions. Managing these risks will require smarter planning, improved building standards, and greater investment in sustainability across the tourism value chain.

Outlook and Conclusion

Vietnam's tourism and hospitality sectors are clearly on a growth trajectory, fueled by a recovering global market, strong domestic demand, and supportive government policies. However, this momentum must be managed strategically. The industry stands at a pivotal point—where success will depend not just on expanding capacity, but on enhancing quality, ensuring sustainability, and prioritizing long-term value.

At Aspecture Global, we provide strategic consulting and operational support tailored to Vietnam’s fast-changing tourism and hospitality landscape. From hotel development and repositioning to tourism planning, feasibility studies, and independent hotel management, our team delivers market-aligned solutions grounded in local expertise and international standards.

Partner with us to turn opportunity into long-term value. Contact us at info@aspectureglobal.com or submit a form here.