According to analysis by JLL Vietnam in its report 'Inside Vietnam’s Hospitality Future', released on September 24, the sector is entering a prolonged period of investment growth. The findings highlight how rising tourism demand and new developments are creating opportunities across the hospitality market.

JLL reports a positive outlook for Vietnam’s hotel investment market, with transaction volumes expected to reach $125 million in 2025, revised upward from an earlier forecast of $100 million, reflecting improved market conditions and strong investor sentiment.

Looking ahead to 2026, JLL projects transaction volumes to climb to $200 million, driven by robust tourism recovery, strong domestic economic growth, and available capital.

Southeast Asia is expected to maintain its historical share of 10–13 per cent of Asia-Pacific’s total hotel investment volume, aligning with pre-pandemic levels.

Le Trang, country head, JLL Vietnam, said that despite recent political uncertainties limiting transaction activity, investor interest remains strong.

"Foreign buyers are targeting well-established assets with long lease terms in key destinations, while domestic capital is increasingly active in Hanoi and Ho Chi Minh City. However, challenges persist in unlocking institutional-grade assets, which is critical to sustaining transaction momentum," said Trang.

According to figures from the Vietnam National Authority of Tourism, Vietnam’s tourism revenue has fully recovered from the pandemic, achieving remarkable milestones in 2024 with approximately VND840 trillion ($32 billion), a VND84 trillion ($3.2 billion) increase compared to pre-pandemic 2019 levels.

The sector is poised for further growth, targeting 22–23 million international visitor arrivals in 2025, with total revenue projected to reach VND 980 trillion to VND1.05 quadrillion ($37.6 to $40.3 billion).

Key drivers include the rise in cruise tourism, meetings and events, and high-profile social occasions, bolstered by major cruise lines like Royal Caribbean and MSC Cruises adding Vietnam to their itineraries.

While Mainland China, historically Vietnam’s largest source market at 32 per cent pre-pandemic, accounted for 24 per cent of visitors in early 2025 due to slower outbound travel recovery to then 29 per cent in the first eight months of the year and exceeding pre-pandemic level, other markets have shown resilience.

Data from the start of 2025 until August indicates significant on-year growth from Russia (206 per cent) and Cambodia (71 per cent), alongside steady demand from markets such as South Korea, Taiwan, the US, and Japan, while India continues to grow strongly.

Drawing on comprehensive market data and expert analysis, JLL shared key insights into the trends shaping Vietnam’s tourism and hotel investment markets, forecasting a vibrant outlook for 2025 and 2026.

'The outlook is further supported by Vietnam’s favourable visa policies, security, stability, and proactive tourism promotion campaigns in Europe. The government’s emphasis on sustainability and digitalisation is shaping future supply, particularly in the upscale segment,' said Trang.

"If owners bring quality assets to market, we see significant scope for Vietnam to capture increasing investor demand over the next 18 months," Trang added.

According to the latest data released by the General Statistics Office, Vietnam welcomed nearly 14 million international visitors in the first eight months of the year, up almost 22 per cent compared to the same period last year. In August alone, more than 1.68 million arrivals were recorded, an 8 per cent increase from July and the highest figure for any August in previous years.