To reshape hospitality and residential market

Vietnam’s hospitality and residential market is no stranger to disruption, but what’s happening now feels different. The post-pandemic rebound hasn’t followed a straight line. Investor sentiment is cautious, development timelines are stretching, and buyers are asking harder questions. Yet, within the uncertainty, a quiet shift is taking place: developers are rethinking what it means to build for the future.

Branded residences, wellness-focused hospitality, and high-design living spaces are no longer niche, they’re becoming the blueprint for what comes next. Meanwhile, the country’s major cities, especially Ho Chi Minh City, are evolving faster than ever, creating both friction and opportunity.

Insights at the “Developers’ Panel: Shaping the Future of Hospitality & Residential”, held on July 10 within the HoSkar Night HCMC event, offered a rare glimpse into how these questions are being answered in boardrooms across Vietnam.

From slips to surges

As 2025 unfolds, Vietnam’s hospitality and residential sectors are navigating a dynamic and increasingly polarized landscape, where certain segments are thriving, others are adjusting to shifting expectations, and legal reforms are beginning to build long-term confidence.

From a hospitality standpoint, there is a clear divergence between mid-scale and luxury. Four-star hotels are bouncing back strongly, based on value-driven travelers and strong urban positioning. Mr. Bill Vu, Director of Silverland Hotels, noted that properties near the city center have been operating at 90-95 per cent occupancy, offering “value living” and fulfilling demand for convenience and affordability.

Conversely, luxury hotels are facing a more competitive environment. Guests are no longer impressed by aesthetics alone, they want meaningful, experience-led stays that reflect the brand’s identity and purpose. “We have to push for something other than just facilities,” Mr. Vu said.

On the residential side, the narrative is more complex. Mr. Richard Leech, Deputy CEO of the Phu Long Group, emphasized that many of 2024’s systemic challenges have carried over into 2025, especially legal bottlenecks and delays in permitting and site clearance. However, he also acknowledged early signs of progress: more new project launches and a sense that market confidence is slowly returning.

Mr. Leech argued that real estate development in Vietnam cannot be evaluated on a year-by-year basis. “We have to look at a five to eight-year horizon,” he believes. “As long as we’re seeing some positive growth, that’s already encouraging.”

For others, 2025 is being viewed as a pivotal inflection point. Mr. Hieu Do, CEO of VinaLiving, described it as a “breakthrough year” for the business, citing buyer interest for long-stalled products and a renewed vibrancy across Vietnam’s provinces. Improved infrastructure, streamlined governance, and rising employment are combining to create a more optimistic environment for developers. “The atmosphere is shifting,” he said. “It’s not just about delivering long-delayed projects; it feels like the start of a new cycle.”

This blend of momentum and unpredictability is part of what makes Vietnam so distinct, according to Mr. Lawrence Peh, CEO of SonKim Land. He noted that Vietnam is a market where both “horror stories and success stories” are equal in number. For example, his team successfully relaunched a luxury project last December despite weak sentiment, only for momentum to stall again due to unexpected tariffs. Today, with pressure easing, activity is gradually picking up. “That’s the excitement of this market,” he reflected. “Vietnam remains full of opportunities.”

Beyond new builds, demand is shifting towards repositioning and refurbishment. Mr. Felice Iacobellis, Managing Director of design studio SIRHALO, observed that 2025 is witnessing a growing volume of requests for rebranding and light renovations, especially as more international hotel brands choose to take over existing properties rather than invest in greenfield developments. “Some of the assets we’re working on are just ten years old,” he said. “Instead of starting from scratch, brands are adapting what’s already there to meet new standards and guest expectations.”

A picture of an industry in flux has been painted - not stalled, but evolving. While the pace of recovery may differ across segments, there’s a shared sense that Vietnam’s hospitality and residential sectors are not merely rebounding - they are reinventing themselves, one project, policy, and province at a time.

Building tomorrow’s city

As Ho Chi Minh City gears up to become a regional powerhouse, real estate developers and urban planners are grappling with a critical question: what kind of city are we building for the next decade?

“Put your money where it makes sense,” said Mr. Leech, as he outlined the importance of long-term planning. Referencing the government’s Vision 2035-2040 and even a 2060 outlook, he emphasized the strategic significance of infrastructure in shaping urban growth. “Ring Road 3 is opening up new urban corridors with massive land potential,” he went on. “With the metro lines becoming equitized, we’re seeing real momentum. In ten years, multiple metro lines should be up and running.”

Transit-Oriented Development (TOD) emerged as a key strategy. “It’s a huge opportunity - residential, commercial, everything,” Mr. Leech noted. When asked what the city needs most - commercial, retail, luxury, or office - his answer was unequivocal: “Everything. We’re always short.” He underscored the lack of residential units, hotels, commercial space, and industrial parks, all of which are vital to support Ho Chi Minh City’s transformation into a top 50 global city and a hub for international finance.

Adding perspective, Mr. Vu highlighted a fundamental shift in the city’s identity. “We’re not just talking about the old Ho Chi Minh City,” he explained. “We’re now talking about a merged region that includes the former Binh Duong and Ba Ria-Vung Tau provinces. We have the beach, the biggest port in the south, the largest industrial parks, and we’re heading towards a population of 20 million people.”

With that scale comes complexity. Mr. Vu described Ho Chi Minh City as evolving into a multi-core metropolitan model, no longer constrained to its original urban core. “What happened between Ring Roads 2 and 3 is already telling,” he said. “For every unit sold inside the city core, three were sold in the peri-urban rings. Expect the same between Ring Roads 3 and 4.”

And is the government backing this vision with real investment? “I think so,” he replied. “We’ve never seen such large-scale public investment. Even with only 33 per cent of the year’s budget disbursed in the first half, it marked a 60 per cent year-on-year increase. Revenue from real estate has reached record highs, and that money is now being reinvested in infrastructure.” According to him, this creates a “complete ecosystem” that is finally working in a positive cycle.

Mr. Peh, for his part, offered some words of caution: “What I’ve noticed about the Vietnamese market is that it transitions very quickly. It matures fast. Just like the country went from no phones to top smartphones, you’ll find the same with real estate trends. You think wet markets will last forever, then overnight, everyone’s in supermarkets. So don’t wait for typical stages to unfold. They won’t.” That leapfrogging nature can be both an opportunity and a risk, he warned.

From a tourism and hospitality lens, Mr. Iacobellis brought a candid perspective after more than two decades in the city. “I still love Ho Chi Minh City, and the tourism data looks great,” he said. “We’ve even seen Thailand lose visitors to Vietnam recently.” But the momentum, he warned, is fragile.

“There’s not enough to do after the first visit,” he continued. “Compared to Bangkok, Ho Chi Minh City lacks night markets, major concerts, and walkable city life. We cleaned sidewalks for a while, but it didn’t last.” He called for more attractions, better urban experiences, and a fresh wave of hotel developments, citing that “there haven’t been many new hotels built lately to cater for that growth.”

As the discussion wrapped, one truth stood out: Ho Chi Minh City’s potential is immense, but real transformation will only come if stakeholders act with clarity, urgency, and boldness.