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Vietnam strengthens position of hospitality property market

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2 days ago

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Vietnam continues to catch the eye of developers and operators from home and abroad in resort real estate development, especially from Asia and private equity funds.

At the Meet The Experts conference held in Ho Chi Minh City last week, Michael Wirz, director of SonKim Land, said that investment opportunities in the hospitality sector were widespread, especially in Ho Chi Minh City and provinces with newly built and operational infrastructure systems.

“In Ho Chi Minh City, SonKim Land has projects located in Thu Duc and is benefiting greatly from the new metro line coming into operation,” he said. “In particular, opportunities are expanding with projects located along the Saigon River. If projects along the river can be developed, it will change the face of the city and the tourism industry. I see opportunities are opening up for all investors here.”

In addition to projects in the centre of Ho Chi Minh City, SonKim Land is continuing to implement branded residence projects in Cam Ranh and Phan Thiet cities, deemed the capitals of resort real estate.

“Mix functional and luxury hospitality projects that combine housing and hotels hold much potential, and we believe it will bring efficiency to both developers, operators and the customers in the future,” he said.

Seng Soon Chuah, development director for Southeast Asia & Pacific at holiday company Club Med, said that the future of the hospitality segment was bright, especially resorts in prominent locations such as Ho Chi Minh City and coastal provinces.

“We have seen many developers researching and encouraging the all-inclusive resorts, which generally include lodging, unlimited food and drinks, entertainment, and other recreational activities in the price of a stay,” Chuah said.

He added that all-inclusive resorts were also one of his focuses. “All-inclusive concepts will have much room to develop. We have hotels in Japan, in Indonesia and are looking for opportunities in Vietnam. We are cooperating with local partners and are looking for strategic projects,” he said.

Meanwhile, Nelly Phuong Ta, head of Hotel Project Management at Masterise Group, believed that many customers now have higher resort expectations, so the hotel-residential hybrid is a trend that is creating new experiences for guests.

“The experiences in this hybrid model are providing unique and sophisticated fillings that meet the tastes of the high-end customer segment,” Ta said. “We have had a good start when combining luxury hotels with apartments in a venture because we have a team of professional staff trained abroad to serve this segment – the most luxurious experience for customers, alongside lower costs.”

Ta added that Masterise is looking for more opportunities for other hotels, and will be announcing a 2,000-room venture later this year.

David Roberts, COO of Fusion Hotel Group, agreed that the hotel-residential hybrid was a growing trend in resort real estate. “This is the segment we have focused on developing over the past 18 months. Over half of our projects are now hotel-residential hybrids, and this is what creates a different experience for customers,” Roberts said.

Meanwhile, Omar Romeo, chief development & luxury officer from Minor Hotels, said that searching and developing unique hospitality products such as branded residences was a growing demand for both developers and end-users, especially as living standards increase.

“Adding to that, wellness hospitality and developed infrastructure, convenient connection between central areas and the airport system is enhancing the experience for tourists, which will entirely change the market landscape in the future,” Romeo said.

In the first two months of 2025, Vietnam welcomed 3.96 million international visitors, an increase of 30 per cent over the same period in 2024. Of these, the number of international visitors from Asia accounted for the majority with more than three million.

Vietnam strengthens position of hospitality property market
Vietnam strengthens position of hospitality property market, illustration photo

Chau Nguyen, development director for Vietnam Radisson Hotel Group

Vietnam strengthens position of hospitality property market

In Vietnam, after nine years of development, Radisson currently operates 12 hotels, with six already in operation and six others under development. By early 2025, Radisson’s expansion in Vietnam reached a new peak with the opening of two hotels in Danang and Hoi An and one in Mui Ne. In April, we will launch a 300-room hotel in Halong Bay.

The group is implementing an ambitious growth strategy, aiming for significant expansion in the near future. Our main focus is on high-potential tourist destinations such as Hanoi, Haiphong, Dalat, Nha Trang, and Can Tho, which appeal to both international and domestic travellers.

While most of Radisson’s projects are situated along Vietnam’s coastline, the group is also actively expanding into major urban destinations like Hanoi and Ho Chi Minh City, recognising their strong growth potential.

In addition, Radisson is exploring opportunities in emerging markets such as Sapa, the northwestern provinces, and the Mekong Delta region, including Can Tho. Radisson is among the few hotel groups that develop their own brands independently, rather than expanding through mergers and acquisitions.

This approach provides a competitive advantage, ensuring consistency in project development from inception, and avoiding potential conflicts of interest with external parties.

Looking ahead, we see strong potential in the resort real estate market. We have observed increasing demand from international travellers, particularly from India and the Middle East, with steady growth across Southeast Asia. Like other hotel groups, Radisson remains optimistic about policies that encourage international tourism and facilitate the return of overseas Vietnamese.

Micheal Piro, Co-CEO, Indochina Capital

Vietnam strengthens position of hospitality property market

Indochina Capital has invested in the Vietnamese market for more than 15 years and has developed strongly in the resort real estate sector. It must be said that this segment has been quite difficult in the last 3-4 years. However, I believe that the next 2-3 years will be the time for us to recover new development projects because the supply in recent years has been limited, and the demand is accumulating at a high level and now will be the time to explode.

In addition, technology is increasingly developing in resort real estate management. With the support of technology, we can better identify market information, help developers, operators and consumers to be more confident about the market.

I am thrilled because almost every week the market changes positively. We have had a pretty good start for 2025 in terms of attracting tourists to Vietnam, forecasting a good business year for the tourism market with 23-25 million tourists to Vietnam to the year’s end. This figure will surpass the record of previous years.

The Vietnamese market serves the entire global supply chain, so Vietnam is gradually becoming a destination for investors in the manufacturing sector. Along with tourism, manufacturing are two factors that help develop hospitality.

Therefore, the future is full of growth opportunities. We can attract foreign investment, but we also need to have local partners with enough capacity to successfully implement projects with us because they understand the market, identify business and legal risks.

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Vietnam’s Exclusive Economic Zone boasts over 1,000 GW of wind power potential: report

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16 hours ago

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April 27, 2025

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Vietnam’s Exclusive Economic Zone (EEZ) has a wind power potential of 1,068 GW, nearly 470 GW more than previously estimated, according to a report released Friday by the National Center for Hydro-Meteorological Forecasting (NCHMF).

An offshore wind power project in Vietnam. Photo courtesy of VnEconomy.

An offshore wind power project in Vietnam. Photo courtesy of VnEconomy.

The report, titled “Detailed Assessment of Wind Resource Potential in Coastal (up to 6 Nautical Miles) and Offshore Areas in Vietnam,” was conducted by the NCHMF with support from the United Nations Development Program (UNDP) and the Norwegian Embassy.

This wind potential was measured at a height of 100 meters above sea level, said Mai Van Khiem, director of the NCHMF. He noted that from November to February each year, wind capacity accounts for half of the annual total – peaking in December and gradually decreasing, with the lowest levels recorded in May.

The southern offshore areas account for 894 GW of this potential, while the northern areas contribute 174 GW.

In nearshore zones (up to 6 nautical miles), the total technical wind power potential is 57.8 GW. The Bac Lieu-Ca Mau region alone contributes nearly 30% of this, while the Ninh Thuan-Binh Thuan area accounts for 24 GW. Although the Quang Tri-Hue region has lower potential, it offers stable wind speeds during the winter months. The Red River Delta has a modest potential of 0.17 GW.

Compared to previous assessments, such as the World Bank’s 2021 study and data from the Global Wind Atlas (GWA), this report provides more detailed and higher-resolution information, both spatially and temporally.

“Notably, the EEZ potential outlined in this report exceeds the World Bank’s estimate by 469 GW, primarily due to the broader scope of the survey and more refined climate modeling using domestic observational data,” the research team explained.

They also emphasized the use of the Weather Research and Forecasting (WRF) model customized specifically for Vietnam, which enhanced the accuracy of the results.

The findings are based on wind data collected from 26 coastal and island meteorological stations, satellite sources from CCMP, ASCAT, and SCATSAT-1 (covering 30 years of ocean surface wind data), as well as buoy data from Nghe An province and seabed depth measurements.

A key innovation in this report is the integration of potential impacts from extreme weather events. Typhoons and tropical depressions occurring between August and October pose structural and safety risks to wind turbines. Meanwhile, strong winds and high waves during the northeast monsoon season can hinder access to and maintenance of offshore wind systems.

To support model calibration and long-term observation, the research team recommends increased investment in offshore wind monitoring stations at heights exceeding 100 meters. They also suggest incorporating these findings into offshore wind development strategies and national marine spatial planning.

Additionally, the team advocates for expanding research into other forms of marine renewable energy, such as wave, tidal, and ocean thermal energy.

“Vietnam has some of the most promising offshore wind resources in the region, creating a strong foundation for the development of a large-scale offshore wind industry. This will contribute to energy security, green economic growth, and the achievement of net zero commitments,” they said.

The study provides a vital scientific basis for policy planning, identifying priority development zones, attracting investment, building infrastructure, and training the future offshore wind workforce, the team added.

Hoang Duc Cuong, deputy director of the Department of Meteorology and Hydrology, emphasized that Vietnam lies within a strong and stable Asian monsoon belt, giving it abundant wind energy potential. He noted that this renewable source will play a key role in meeting the country’s climate change goals and advancing a low-carbon economy.

However, he also warned that marine-based natural disasters are highly complex and could significantly impact the stability of offshore wind operations and energy generation.

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Uncertainty weighing on real estate

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17 hours ago

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April 26, 2025

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The ever-changing status of the global economy following last week’s tariff shocks continue to loom large among investors in Vietnam’s real estate market.

Uncertainty weighing on real estate
All real estate segments are at risk of losing appeal if high global tariffs are eventually put in place, photo Le Toan

Pham Lam, vice chairman of the Vietnam Real Estate Association, said that while it is premature to determine the full impact of new US import tariffs on Vietnam’s property market, early signs point to shaken investor sentiment and potential disruptions to foreign investment.

“If multinational corporations scale back or delay their factory expansion plans, the demand for land and factory leasing could decline, which may place downward pressure on industrial rents, lead to increased vacancy, and postpone new industrial zone developments,” he said. “This would affect key industrial property markets such as Bac Ninh, Bac Giang, Haiphong, Long An, and Binh Duong.”

Meanwhile, real estate expert Nguyen Hoang said that the United States remains one of the most critical export destinations for Vietnam’s foreign-invested enterprises.

“Any change in tariffs will significantly influence capital flows, investor confidence, and manufacturing strategies of companies operating in Vietnam. If a high tariff is fully implemented in 90 days, it could seriously diminish Vietnam’s investment appeal – affecting all real estate segments as a result,” Hoang said.

Vietnam’s property market has only recently emerged from a prolonged two-year downturn.

“It remains highly sensitive to economic and policy shocks. Investors have remained cautious, and any further external pressure could threaten to break the fragile liquidity recovery, potentially sending the market back into a period of short-term stagnation,” Hoang added.

Alex Crane, managing director of Knight Frank Vietnam, said that the recent tariff twists by the US casts a shadow of uncertainty, with potential implications for various segments of the market.

While manufacturing has shown resilience, it is still on the path to full recovery from the pandemic, particularly in labour-intensive sectors like garments and furniture. Tariffs imposed now would not have as severe an impact as they might have during Vietnam’s 2019 peak, but consequences are still expected, Crane said.

“I may expect that major transactions, especially those involving large capital outlays, are being paused or undergoing extended due diligence as investors and developers reassess assumptions and underwriting models and commercial occupiers are expected to defer large capital expenditures in the short term,” Crane said.

In addition, the response from the State Bank of Vietnam, particularly regarding monetary policy, will be crucial. While a rate cut may not effectively stimulate residential demand (as demonstrated in 2024), targeted lending for key industries and easing of loan-to-value ratios or debt-to-income limits for developers could provide relief.

“At present, most segments of the real estate market are in a holding pattern, awaiting clarity from the evolving negotiations between the Vietnamese and US governments. While uncertainty is unsettling, Vietnam’s underlying fundamentals remain sound, and the market’s long-term outlook is still viewed positively,” he added.

Nguyen Dung Minh, deputy CEO of MIK Group, has warned that under the new US tariff regime, many investors will be forced to reassess their strategies, likely leading to a decline in the demand for industrial land.

“Investors will need time to re-evaluate their actual demand and incoming orders and make necessary adjustments before they can fully gauge the extent of the impact,” Minh said.

He added that the implications go beyond just industrial land. “The new US tariffs are also expected to disrupt supply chains and negatively affect supporting sectors such as logistics, warehousing, and raw materials manufacturing. As production slows, so too will the demand for land associated with these services,” Minh said.

Trang Bui, country head Cushman & Wakefield Vietnam

While the effects of tariffs are typically delayed, most economists warn that they may eventually fuel inflation and dampen economic growth. Many manufacturing firms could opt to postpone their expansion plans in the short term if export duties become too burdensome. There is also a possibility that some companies may look to diversify their supply chains towards a Vietnam+1 model, shifting parts of their operations to neighbouring countries.

This could lead to a decline in demand for factories and warehouse leasing, two key drivers of the industrial real estate segment. However, it is important to recognise that industrial real estate is fundamentally a long-term investment. Vietnam has long positioned itself as the manufacturing hub of Southeast Asia, thanks to its strategic location and the “bamboo diplomacy” approach, which has enabled the country to swiftly join trade negotiations and sign multiple free trade agreements.

Moreover, many manufacturers in Vietnam have already established tightly integrated supply chains. As such, their investment plans tend to operate on a much longer time horizon than the near-term effects of tariff policy. Relocating supply chains typically requires at least 3–5 years, making short-term shifts less likely.

Overall, Vietnam’s industrial real estate sector has proven resilient under various political and economic conditions. Investors would do well to focus on long-term trends and structural advantages. Manufacturers, in particular, may take this opportunity to secure high-quality industrial assets, invest in automation, and pull in skilled labour, while continuing to monitor developments in upcoming trade negotiations with caution.

Nguyen Thi Bich Ngoc, CEO, Sen Vang Group

When it comes to the reciprocal tariff policy announced by the US, the greater danger currently lies not in the tariff itself, but in the heightened sense of uncertainty it has triggered across the Vietnamese market, a sentiment clearly reflected in recent VN-Index fluctuations.

In the short term, the policy will weigh heavily on Vietnam’s industrial real estate sector. However, in the long run, this challenge could serve as a catalyst for stronger growth. It presents an opportunity for the government and industrial zone developers to rethink their strategies, offering more competitive, attractive solutions to both foreign and domestic investors.

Rather than relying solely on external trends like the China+1 shift, Vietnam should leverage its inherent competitive advantages, including a strategic geographic location, a skilled and cost-effective labour force, and political stability, to pull in long-term investment. These are undeniable strengths that set Vietnam apart.

Moreover, this is also an opportune moment for Vietnam to re-evaluate and restructure its key sectors, prioritising strategic industries with high growth potential. Continued engagement in bilateral and multilateral trade agreements will open up new opportunities and elevate Vietnam’s position both regionally and globally.

Ultimately, we must seize this challenge as a turning point, transforming pressure into momentum for sustainable development.

Vo Hong Thang, Investment director DKRA Group

The industrial infrastructure, commercial, and residential real estate segments are all likely to face increasing headwinds if a huge tariff increase is eventually implemented.

In recent years, a number of developers have made significant investments in industrial zones, betting on a continued influx of foreign direct investment. However, the new tariff policy raises the possibility of such flows being diverted to other countries. Vietnam now faces the risk of having built the nest, but being unable to attract the eagle.

In addition, liquidity in both residential and commercial real estate, including retail, office, and hospitality, is likely to weaken in the short term due to more cautious investor sentiment, defensive capital flows, and reduced purchasing power from end-users.

Niche investment segments such as serviced apartments, tourism-related accommodations, and foreign buyer housing could also see demand drop, particularly as the foreign expert and executive workforce, typically a key demand driver, scales back plans to live and work in Vietnam.

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Central Vietnam city seeks $1.84 bln for 15 projects in economic zone

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18 hours ago

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April 26, 2025

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Authorities of Hue city in central Vietnam have released a list of 15 projects in Chan May-Lang Co Economic Zone which will need VND47.5 trillion ($1.84 billion) in investment capital between 2025 and 2026.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Chan May-Lang Co Economic Zone in Hue city, central Vietnam. Photo by The Investor/Dinh Duy.

Notable projects include the Chan May non-tariff zones No. 1 and 2 infrastructure development project, with a total area of over 503 hectares and combined investment capital of VND2.8 trillion ($108.23 million).

Another is the VND20 trillion ($773 million) Chan May Urban Area project (locations 1 and 2), which will cover 225 hectares and be implemented over five years.

The LNG terminal project at Chan May Port, 27 hectares with an investment of VND8.6 trillion ($332.43 million), is set for five-year implementation.

The 120-hectare Bai Ca eco-tourism project in Lang Co township will have investment capital of VND2.5 trillion.

The Lang Co beach resort, with an area of 45 hectares and total investment of VND4 trillion ($154.62 million), will be carried out over five years; while the 75-hectare Lap An lagoon tourism, urban development and resort complex in Lang Co township will cost VND6 trillion.

According to the management board of Hue Economic and Industrial Zones, since its establishment, Chan May-Lang Co Economic Zone has attracted 55 investment projects which remain valid, with total registered capital of VND97.32 trillion ($3.76 billion).

Among these, 15 are foreign-invested projects with combined capital of VND56.02 trillion ($2.17 billion), accounting for 57.56% of the total.

Several prominent foreign investors have established a presence in the zone, such as Banyan Tree Group (Singapore) with the Laguna Lang Co Resort and Winson Group (Taiwan) with the Billion Max Vietnam Export Processing Factory.

Chan May-Lang Co has become a destination for investments in sectors like tourism and resort development; seaport infrastructure; logistics; clean industry; and high-tech, environmentally friendly industries, with annual revenue reaching nearly VND4 trillion ($154.62 million) and tax contributions of around VND300 billion.

The management board said Hue city has proposed the Ministry of Construction review the adjustment of the EZ master plan through 2045, for submission to the Prime Minister.

The strategic goal is to develop Chan May-Lang Co into a key economic zone of central Vietnam – a coastal gateway offering logistics services for the central region and the East-West Economic Corridor, as well as a hub for high-end tourism services.

To attract investors, the local government will offer a range of incentives such as a 10% corporate income tax rate for 15 years from the first year the project generates revenue; import tax exemption for goods to create fixed assets for investment projects, and land and water surface rental exemptions, the board said.

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