The serviced apartment market in Hanoi is continuing to grow robustly due to a strong inflow of foreign direct investment (FDI) and a boom in industrial zones.

Photo: baodautu.vn

Hanoi brought in more than $2.16 billion in FDI in 2024, up 30 per cent on-year, placing fifth nationwide.This, combined with the expansion of industrial zones (IZs) around Hanoi, has resulted in a large number of foreign experts, engineers, and technicians coming to work and live in the region, leading to a sharp increase in demand for serviced apartments.

In 2024, Hanoi was home to 10 operating IZs covering 1,348 hectares with high occupancy rates, attracting both foreign and domestic investments, and the city is aiming to add eight more by 2030.

Neighbouring Bac Ninh province has approved up to 6,000 businesses to employ foreign workers, with nearly 15,000 individuals granted or renewing work permits.

Matthew Powell, director of Savills Hanoi, emphasised that the expansion and development of IZs, along with strong FDI inflows, has led to a sharp rise in demand for serviced apartments.

The demand, however, is primarily found in Hanoi’s market due to limited supply and the lower quality of serviced apartments in surrounding areas, while foreign professionals usually have specific accommodation requirements related to quality and services.

“As a result, demand for expatriate housing remains concentrated in Hanoi, where residents have easy access to diverse amenities and high-quality housing options. The market has also recorded an increase in rental demand, particularly as housing demand remains high while property prices continue to be elevated,” he said.

By the end of 2024, the total supply of serviced apartments in Hanoi had reached approximately 6,346 units across 64 projects, maintaining stability on-quarter and increasing by 3 per cent on-year after Swiss-Belresidences Hanoi, a serviced apartment venture in the capital city, became operational last June.

The occupancy rate increased by 2 per cent on-quarter and 84 per cent on-year. A and B-Grade apartments experienced higher occupancy rates, while C-Grade apartments saw a slight decline of 2 per cent.

The average rent increased by 1 per cent on-quarter and 2 per cent on-year, reaching nearly $24 per square metre per month.

Powell also stated that in the forthcoming years, about 20 projects are expected to come onto the market, providing nearly 4,100 new serviced apartments. In 2025 alone, seven new projects will contribute 2,889 units, with the Tay Ho View Complex projected to offer the largest supply of Grade A apartments.

Of the future supply, 83 per cent will be located in the inner city, while the remaining 17 per cent will be to the west.

International operators are optimistic about the market’s growth potential, with their dominance in the serviced apartment segment projected to account for 87 per cent of future supply.

Notable international brands actively participating in this market include The Ascott, Lotte Group, Parkroyal Serviced Suites Hanoi, Shilla Hotels & Resorts, Hilton, and Hyatt.

According to the Foreign Investment Agency under the Ministry of Finance, by the end of February, total FDI in Vietnam had surpassed $6.9 billion, up 35.5 per cent on-year.

During the period, Hanoi alone had attracted more than $1.1 billion, up 2 per cent on-year. This included 51 newly registered projects with a total capital of $20.1 million, 24 projects with supplemental capital totalling $1.038 billion, and 52 cases where foreign investors either contributed capital or acquired shares, amounting to $42.7 million.

To realise the dream of developing comprehensive AI, a single organisation is not enough, but it is vital to create a seamless and strong digital ecosystem with thorough investment, according to Bui Hai Quan, vice chairman of the Board of Directors at VPBank, at the AI-Semiconductor Conference (AISC 2025) in Hanoi on March 12.

For the first time, an international conference on AI and semiconductors was held in Vietnam with global names like Google, Nvidia, IBM, Meta, Intel, TSMC, Samsung, MediaTek, Tokyo Electron, and Panasonic, among others

The conference was attended by large enterprises such as VPBank, FPT Corporation, IBM, and VNPT, gathering more than 1,000 influential leaders and experts. AISC 2025 focused on discussions about new technology trends in AI and semiconductors, best practices from large organisations, and cross-border business opportunities.

At the conference, VPBank’s leader delivered a keynote speech sharing the experience of a Vietnamese bank in developing AI applications.

Bui Hai Quan, vice chairman of the Board of Directors at VPBank, shared the trends of adopting technologies in the finance and banking sector

According to Quan, banks in the future will be intelligent, proactive, and highly personalised to enhance efficiency, security, and customer engagement. AI-based financial ecosystems not only predict customer needs but also encourage financial inclusion, improve risk management, and build deeper customer relationships.

“Recognising the role of technology and AI early, VPBank has opted for mastering technology, not merely following the market,” Quan said.

VPBank’s strategy focuses on creating a seamless digital ecosystem that connects various member companies across banking, consumer finance, securities, digital insurance, and some other multiservice platforms. All member companies are technology-centric.

Cake by VPBank is a typical example of a digital bank without brick-and-mortar branches. Launched in 2021, Cake by VPBank serves five million customers with only 250 employees, processing 700,000 credit applications monthly.

The company’s success lies in the adoption of technologies, especially AI, since its inception. Cake uses over 20 score models to evaluate customer behaviour. They are also the first digital bank in Vietnam to have developed its own large language model (chatbot). In February 2025, Cake was ranked among the ‘World’s Top 100 Digital Banks’ for 2025 and honoured as ‘Best Digital Bank in Vietnam’ by The Asian Banker Global.

With a clear and consistent strategy, VPBank also made great strides in other digital initiatives, making a positive contribution to the ecosystem. VPBank NEO boasts over 10 million users and handles 600 million transactions annually.

OPES, a digital insurer in the non-life sector, posted a revenue of $102 million in 2024 with only 110 employees. Be has transformed a ride-hailing app into a leading superapp fully operated by Vietnamese, serving 12 million users with tens of millions of transactions monthly.

According to VPBank’s representative, the bank clearly defines its strategic vision of becoming a bridge to Vietnam’s deep integration into the world through powerful digital platforms. The bank will bring the most advanced technologies to Vietnam while introducing Vietnam’s technology capacity and innovation to the world.

Sharing the opportunities in a new era, Christopher Nguyen, founder of Aitomatic and co-organiser of AISC 2025, stressed that Vietnam was facing a “once-in-4,000-years” opportunity to develop AI and semiconductors.

Christopher Nguyen, founder of Aitomatic

Christopher Nguyen said, “The Vietnamese government’s efforts to encourage AI and semiconductor development demonstrate the right direction, aligned with a global technology value chain shift.”

“The combination of national vision and international investment needs from developed economies such as the US, Japan, and South Korea has opened up important opportunities for the development of the AI and semiconductor industries in Vietnam,” he added.

Vu Quoc Huy, director of the National Innovation Centre (NIC), said, “With the aspiration to transform Vietnam into a base for global technology development, the government is making efforts to encourage innovation and develop the high-tech industry, especially AI and semiconductors.”

“In the semiconductor industry, the government has set a goal to develop a high-quality workforce by 2030 in collaboration with global partners, institutes, and schools to nurture talent. As for AI, NIC is working with partners to develop open-source software, expected to be announced on March 14.”

“We hope international partners continue to explore opportunities in Vietnam while creating the most favourable conditions for development. AISC 2025 lays an important foundation for exchanges and shapes the future of the semiconductor industry.”

The opening session of AISC 2025 also offered academic perspectives on the intersection of AI and semiconductor technology from scientists.

Anna Goldie from Google DeepMind spoke about AlphaChip – a revolutionary advancement in AI-driven microchip design by Google. Pioneering researchers from Stanford University and the University of Warwick presented cutting-edge studies on AI-applied IC design, scaling semiconductor production, and the potential of Large Language Models in specialised fields.

At the end of the session, for the first time in Vietnam, participating companies took part in the Startup Pavilion – an international ‘Shark Tank’ scheme, where leading investment funds can directly evaluate innovative ideas.

The platform enables domestic technology firms to quickly connect with senior leaders, pitch their projects within a limited timeframe, and secure key agreements during the conference, paving their entry into the global technology market.