Vietnam emerges as Asia’s fastest-growing tourism hotspot: Savills Hotels

Updated: 10:57, 02/12/2025

The country welcomed 17.6 million foreign visitors in 2024 and another 15.4 million in the first nine months of 2025, putting it on track to hit the 25 million target by year-end. As of the third quarter, Vietnam had more than 192,000 midscale-to-luxury hotel rooms, reflecting a compound annual growth rate of 10.9% over the past decade, one of the highest in Southeast Asia.

Vietnam’s tourism sector is experiencing robust expansion fueled by surging domestic travel and a sharp recovery in foreign arrivals, especially from Asia, cementing its position as one of the region’s fastest-growing destinations, according to the Vietnam Hotel Investment Guide 2025 published by Savills Hotels and international law firm Watson Farley & Williams.

Phu Quoc is popular among tourists.

The country welcomed 17.6 million foreign visitors in 2024 and another 15.4 million in the first nine months of 2025, putting it on track to hit the 25 million target by year-end.

As of the third quarter, Vietnam had more than 192,000 midscale-to-luxury hotel rooms, reflecting a compound annual growth rate of 10.9% over the past decade, one of the highest in Southeast Asia.

About 60% of rooms are located in coastal areas, underscoring the dominance of resort tourism model. Performance improved markedly in key markets: Da Nang and Nha Trang resorts regularly exceeded 70-75% occupancy, while Phu Quoc posted year-on-year occupancy gains of 10–15%.

With tourism rebounding strongly, new supply slowing, and demand shifting toward premium offerings, investor confidence has returned, Savills said.

Domestic developers still control nearly 90% of existing stock, and about 68% of hotels remain owner-operated, creating ample opportunities for refurbishment, repositioning or management contracts with international brands.

The number of foreign hotel brands operating in Vietnam is projected to rise from 90 currently to more than 130 over the next three years.

Beyond acquisitions, both local and overseas investors are actively pursuing coastal land and assets with redevelopment potential, with the strongest interest focused on luxury, upscale and branded-residence projects.

Major infrastructure projects, including Long Thanh International Airport, expansions at Noi Bai and the new Gia Binh airport, plus the North-South expressway, are enhancing regional connectivity and supporting long-term growth of tourism and hospitality.

Mauro Gasparotti, Senior Director of Savills Hotels Asia Pacific overseeing Southeast Asia, said improving demand fundamentals and growing acceptance of diverse product types, particularly in Ho Chi Minh City and Hanoi, continue to make Vietnam attractive to foreign investors hunting high-return opportunities.