Southeast Asia Information Port (www.dnyxxg.com) – According to the latest data from JLL, Vietnam has become the fastest-growing tourist destination in Southeast Asia, with international tourist arrivals increasing by 21.7% year-on-year this year. Benefiting from flexible visa policies and comprehensive legal reforms, investment in the hotel market has surged, and JLL has raised its 2025 forecast for hotel investment in Vietnam from US$100 million to US$125 million.
Visa Easing Activates Tourist Flow, Leading to a Surge in Tourists from Multiple Countries
The "2025 Vietnam Hotel Investment Guide" jointly released by JLL and DN Legal shows that the new visa policy implemented on August 15, 2023 – extending the visa-free stay period from one month to three months and allowing multiple entries and exits – has become the core driver of tourist growth. Data for October 2025 is particularly impressive: Swiss tourists increased by 67%, Danish tourists by 66%, Thai tourists by 58%, Czech Republic, France, and Sweden by 56%, and Chinese and South Korean tourists by 20% and 10% respectively.
A Clear Market Structure, with Core Cities Becoming Investment Focuses
Currently, Vietnam boasts over 1,500 accommodation facilities and more than 185,000 rooms, with the high-end to luxury segment accounting for 57%. Ho Chi Minh City, Hanoi, and Da Nang are the three core markets, accounting for 14%, 13%, and 12% of the room supply, respectively. Looking at future potential, Hanoi, Da Nang, and Hoi An are the areas with the highest concentration of projects under construction/planned before 2028, with the mid-range market absorbing 33% of the new supply.
In terms of performance, Vietnam's hotel revenue per available room (RevPAR) is projected to grow at an average annual rate of 21% from 2020 to 2024, with consistently high occupancy rates. Ho Chi Minh City's hotel performance surpassed 2019 levels in 2024, and this growth momentum is expected to continue in 2025. The diverse customer base, including business, leisure, and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourists, helps it maintain above-average performance compared to Hanoi.
A package of policies has bolstered confidence, and investment returns are nearing expectations.
Legal and administrative reforms continue to empower the market: The Land Law, effective August 2024, shortened the land price adjustment cycle from 5 years to 1 year, improving pricing transparency; from July 2025, building permit requirements for completed projects have been simplified, shortening development cycles and reducing legal risks; the administrative division adjustment implemented on the same day merged 63 provinces and cities into 34, simultaneously streamlining ministries and creating space for upgrades to transportation and accommodation facilities; the Personal Data Protection Law, effective January 2026, requires hotels to comply with international information protection standards, strengthening market credibility.
Infrastructure upgrades are proceeding in tandem, with international airlines such as Emirates continuing to expand their routes to Vietnam, while the new local airline, Sunny Phu Quoc Airlines, is strengthening Phu Quoc Island's status as a transportation hub. With these multiple positive factors, the yield on Vietnamese hotel transactions has stabilized at 6%-7.5%, approaching investors' expected range of 8%-9%.
Industry insiders are optimistic: A transparent environment reduces investment risks.
Michael Roberts, Asia Pacific Hotel Director of a US investment group, pointed out, "Vietnam's tourism market is growing rapidly, with a continuous expansion of Asian and European customer groups. Stable policies and diversified supply make investors willing to increase their investment in core cities and resort areas." British tourist Daniel Thompson corroborated this with his personal experience: "Ho Chi Minh City's five-star hotels offer both professional service and reasonable prices, clearly demonstrating the industry's vitality."
Karan Kaneju, Senior Vice President of Hotel Investment for JLL Asia Pacific, emphasized that future large-scale transactions will focus on city center hotel assets and high-end resorts, with both domestic and international capital participating. John Smith, Asia Pacific Investment Director of a UK investment fund, commented, "A clear regulatory framework reduces foreign investment risks, and reforms in building approvals and land management accelerate project progress, making Vietnam a highly attractive market."
A policy combination of visa facilitation, improved laws, and optimized administration is driving Vietnam's hotel industry into a sustainable growth cycle, consolidating its position as a leading tourist destination in Southeast Asia.
