Vietnam's tourism and hospitality sectors have experienced remarkable growth, making it a compelling destination for starting and investment in vacation rentals, resorts, and hotels.
Vacation Rentals in Vietnam
Why Vietnam?
- Tourism Growth: Vietnam welcomed 17.58 million international visitors in 2024, marking a 39.5% year-on-year increase and nearing pre-pandemic levels.
- Economic Contribution: The tourism sector contributed approximately 6.6% to Vietnam's nominal GDP in 2024, underscoring its significance to the national economy.
- Infrastructure Development: The government is investing in infrastructure, including transportation and utilities, to support tourism growth.
Top Tourist Destinations
- Ho Chi Minh City (HCMC): A bustling metropolis known for its vibrant street food scene, historical landmarks, and dynamic nightlife.
- Hanoi: The capital city offers a blend of ancient history, colonial architecture, and rich cultural heritage.
- Hoi An: A UNESCO World Heritage site famed for its well-preserved ancient town, lantern-lit streets, and culinary delights.
- Ha Long Bay: Renowned for its emerald waters and thousands of towering limestone islands topped with rainforests.
- Da Nang: A coastal city offering a mix of cultural attractions, beautiful beaches, and proximity to heritage sites.
- Phu Quoc: Vietnam's largest island, celebrated for its pristine beaches, luxury resorts, and vibrant night markets.
Market Entry Strategy
- Investment Models:
- Vacation Rentals: Popular in urban centers and tourist hotspots; however, regulatory compliance is crucial.
- Boutique Hotels: Cater to niche markets seeking unique experiences.
- Luxury Resorts: Ideal for coastal and island destinations, attracting high-end travelers.
- Partnerships: Collaborate with local developers or international brands to leverage market knowledge and brand recognition.
- Technology Integration: Utilize platforms like Airbnb and Booking.com, which are expanding their presence in Vietnam .
Legal Compliance & Risk Management
- Short-Term Rental Regulations: As of August 1, 2024, the new Housing Law classifies daily or hourly rentals as hotel operations, requiring proper licensing. Residential apartments can only be used for living purposes, with severe penalties for commercial misuse.
- Taxation: Hosts must comply with Vietnam's taxation laws, including an 8% Value Added Tax (VAT) and applicable income taxes on rental earnings.
- Risk Management: Ensure properties meet safety standards and have appropriate insurance coverage.
Market Insights & Trends
- Hotel Market Growth: The Vietnam hospitality market was valued at USD 7.0 billion in 2024 and is projected to reach USD 20.7 billion by 2033, growing at a CAGR of 12.20%.
- Investment Activity: In 2024, the volume in the hotel real estate investment market was approximately €400 million, representing an increase of more than 65% compared to the previous year.
- Tourism Revenue: In the first quarter of 2025, tourism revenue reached approximately VND 21.5 trillion (US$833.1 million), an 18.3% year-on-year increase
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