Vietnam Hotels & Hospitality Update

The CBRE 2024 Vietnam Hotels & Hospitality Outlook report highlights the steady growth and recovery of Vietnam’s economy and hospitality sector. In the first half of 2024, GDP grew by 6.42%, showing a resilient economy on track to meet the annual target of around 6%. Vietnam remains an attractive destination for Foreign Direct Investment (FDI), ranking third in ASEAN with registered FDI reaching $15.19 billion, a 13.1% increase year-on-year.

International arrivals improved significantly in the first half of 2024, with 8.8 million visitors, a 58.4% increase year-on-year. South Korea and China were the top source markets. The hotel market showed positive signs as of June, with both Hanoi and Ho Chi Minh City recording higher than historical average daily rates. Major infrastructure projects, including airport expansions and metro completions, are on track, potentially boosting the hospitality sector further.

Key Points:

• Vietnam’s GDP growth reached 6.42% in H1 2024.
• Vietnam ranked third in ASEAN for FDI inflows.
• International arrivals significantly improved in H1 2024, reaching 8.8 million, an increase of 58% y-o-y and 11% compraed to H1 2019.
• Both ADR and Occupancy in June improved compared to last year's.