The serviced apartment market in Hanoi experienced significant growth in 2024, driven by strong foreign direct investment (FDI) flows, while it faced challenges from declining FDI and increasing competition in Ho Chi Minh City.
A serviced apartment at the SwissBelresidences Hanoi project by Swiss-Belhotel International. Photo courtesy of Epic Tower.
In 2024, Vietnam attracted a total of $38.2 billion in registered FDI. The FDI disbursement reached $25.4 billion, a 9% year-on-year increase and an all-time high.
The influx of FDI led to a substantial number of foreign experts and workers living and working in Vietnam, boosting the growth of serviced apartments, particularly in Hanoi and HCMC.
However, this segment showed contrasting trends in the two major cities.
According to a Savills Vietnam report, the total serviced apartment supply reached 6,246 units from 64 projects, maintaining stability quarter-on-quarter and increasing by 3% year-on-year, after the SwissBelresidences Hanoi project began operation in Q3/2024.
Occupancy rates rose 2 percentage points quarter-on-quarter and year-on-year to 84%. In particular, A- and B-grade apartments had higher occupancy rates quarter-on-quarter, while C-grade ones saw a 2-percentage-point decline.
Average rent climbed by 1% quarter-on-quarter and 2% year-on-year, reaching nearly VND600,000 ($23.5) per square meter per month. Grade C was the only segment to experience a decrease in rental prices.
In 2024, Hanoi attracted $2.2 billion in FDI from 293 newly registered projects, a 30% surge from the same period of 2023, ranking fifth in the country, after Bac Ninh, Hai Phong, HCM, and Quang Ninh.
The capital city also approved the planning of three new industrial parks (IPs) in Thuong Tin and Soc Son districts, covering a total area of 600 hectares. These include Bac Thuong Tin IP (137 hectares), Phung Hiep IP (175 hectares), and Soc Son IP (324 hectares). Ten existing IPs span 1,300 hectares, nine of which are fully occupied.
The expansion of industrial parks is expected to attract more tenants into the serviced apartment market, particularly foreign experts, engineers, and technicians.
Regarding future supply, Savills expected from this year, Hanoi will have 17 new projects with 4,077 units to be launched.
In 2025 alone, seven projects will provide 2,889 units, with the West Lake View Complex projected to add the largest supply of A-grade units. One project in Tay Ho district is expected to add 162 units by 2026. Up to 83% of future supply will be in the inner city, while the remaining 17% will be in the western area.
International operators continue to dominate Hanoi’s market, with 87% of future supply. Notable market players include The Ascott, Lotte Group, Parkroyal Serviced Suites Hanoi, Shilla Hotels & Resorts, Hilton, and Hyatt.
Matthew Powell, director of Savills Hanoi, said he believed that the development of industrial parks, along with strong FDI flows, has been a key driver of the serviced apartment demand growth.
Challenges from declining FDI, competition in HCMC
Meanwhile, in HCMC, in Q4/2024, the supply of serviced apartments decreased by 3% quarter-on-quarter but remained stable year-on-year, with over 8,000 units.
The quarterly decline was primarily due to the closure of 55 A-grade apartments at Indochine Park Tower and the conversion of 175 serviced apartments into hotels in two projects.
Savills forecast that the future supply of serviced apartments in the southern hub will be limited, with increasing competition from rental apartments.
By 2027, only nine projects with a total of around 700 units are expected to enter the market. Of these, B-grade apartments will account for 67% of future supply, with an average 160 units per project.
Since 2021, the situation had improved, with occupancy rates increasing by an average of 4 percentage points per year and rental prices rising 1% annually. However, in 2024, occupancy dropped by 3 percentage points year-on-year to 79%, mainly due to weaker short-term demand in Q3. Rental prices remained stable year-on-year at VND515,000 ($20.2) per sqm per month.
In Q4, rents rose 2% quarter-on-quarter and year-on-year, reaching VND522,000 ($20.45) per sqm per month. Along with the rent increase, high demand during the year-end period helped boost landlords’ confidence.
Occupancy increased by 5 percentage points quarter-on-quarter and by 1 percentage point year-on-year to 82%, thanks to demand from expatriates, international visitors, and business travelers.
There was strong consumption across all categories, with 315 units sold. B-grade apartments accounted for the largest share at 77%, driven by short-term demand from international visitors and business travelers, followed by C-grade with 20%, and A-grade 3%.
FDI is a key driver of accommodation demand from foreign workers in Vietnam. However, experts assessed that the slowdown in FDI growth in HCMC may pose challenges for the growth of this segment.
In 2024, registered FDI in the city reached $3 billion, a 49% plunge from the previous year. Newly registered capital was $511 million, down 15% year on year.
At the same time, the serviced apartment segment in HCMC faced direct competition from more affordable rental apartments. In Q4, serviced apartment rents were approximately 45-112% higher than those for high-end residential apartments. By 2027, more than 5,000 A- and B-grade apartments are expected to enter the market.
Su Ngoc Khuong, senior director of investment at Savills Vietnam, commented that in 2024, serviced apartments in HCMC showed an improvement in performance thanks to growth in international visitors and the year-end travel demand. However, the slowdown in FDI could affect the future prospects of this sector, he noted.
The Thaco – Thái Bình Industrial Park, covering more than 194 hectares with an investment of over VND 2,100 billion, is expected to become operational within this year, according to the development plan.
Recently, provincial leaders of Thái Bình conducted an on-site inspection of land clearance efforts and infrastructure construction progress at the Thaco – Thái Bình Industrial Park located in Quỳnh Phụ District.
To date, Quỳnh Phụ District has completed compensation and land clearance for nearly 192 hectares of agricultural land, involving the land recovery of 1,067 households to hand over to the investor for project implementation.
Currently, the district is focusing on clearing the remaining land, involving 94 households in Lương Cầu Hamlet, An Cầu Commune. At the same time, it is coordinating with the electricity sector to relocate a 220kV high-voltage power line.
On the investor’s side, groundwork construction is underway, including roadbeds, internal roads, stormwater and wastewater drainage systems, and communication infrastructure within the industrial park.
The Thaco – Thái Bình Industrial Park is a specialized high-tech agricultural industrial park proposed by THACO Group (chaired by billionaire Trần Bá Dương) since 2017, originally planned to cover 250 hectares. By July 2017, the provincial authorities agreed to incorporate the project into Thái Bình’s industrial development master plan.
In August 2020, THACO officially broke ground on the industrial park’s infrastructure. A year later, in August 2021, the project’s investment certificate was revised, confirming a total investment of over VND 2,100 billion and a land area of more than 194 hectares. The project is being developed across An Thái, An Ninh, and An Cầu communes in Quỳnh Phụ District.
According to the roadmap, the investor is determined to complete and officially launch the project in 2025.
The Thaco – Thái Bình Industrial Park is designed as a dedicated high-tech agricultural zone, featuring various functional subdivisions including an administration center, agro-food processing zone, high-tech agricultural training center, experimental farms, agricultural materials production area, and a cargo transport port.
This project is considered one of the key developments in Thái Bình Province, playing a crucial role in the region’s socio-economic growth strategy.
In an era where sustainability is not just a choice but a requirement, carbon labelling is emerging as a crucial factor for exporters.
Vu Trung Kien, director Climate Change Resilience Centre
Countries like the US and the European Union are implementing stringent carbon regulations, such as the EU’s Carbon Border Adjustment Mechanism and increasing scrutiny on supply chain emissions.
Vietnamese businesses that fail to adopt carbon labelling risk losing access to lucrative markets. However, those that proactively integrate carbon footprint transparency into their products can gain a competitive advantage, enhance brand reputation, and secure long-term profitability.
Across the world, forward-thinking countries have embraced carbon labelling as a strategic tool for trade success. These efforts have not only helped businesses comply with regulations but have also opened doors to new investment and consumer markets.
Japan has implemented a government-backed carbon labelling programme that allows companies to display detailed carbon footprint information on their products. This has strengthened consumer trust and made Japanese goods more attractive in environmentally conscious markets such as the EU and North America.
The South Korean government incentivises businesses to adopt carbon labelling through tax benefits and green export support schemes. Companies that participate gain access to new trading partners, particularly in Europe, where sustainable supply chains are becoming the norm. Thailand, a key competitor to Vietnam, has integrated carbon labelling across industries such as food processing, textiles, and electronics. Thai exporters, particularly in agriculture, now benefit from preferential treatment in European supermarkets and trade agreements.
These case studies highlight an important lesson: carbon labelling is not just about compliance – it is a business strategy that enhances market access, builds consumer confidence, and future-proofs exports.
For businesses in Vietnam, waiting until carbon labelling becomes a legal requirement would be a mistake. Many international corporations have already set ambitious sustainability targets, requiring suppliers to provide verifiable carbon footprint data. Voluntary carbon labelling can position Vietnamese enterprises as reliable, future-ready partners.
It works by companies conducting a life cycle assessment to measure emissions from production to disposal. Products are labelled with a carbon footprint score, helping consumers and businesses make informed choices. Labels are often verified by third-party certifiers to ensure credibility and compliance with global standards.
The benefits include a boost for green supply chains. Companies like Nestlé and Unilever prioritise suppliers that provide carbon footprint transparency. Vietnamese food and beverage exporters can gain an edge by aligning with such demands.
Businesses with carbon-reduction strategies attract funding from international banks and investors that focus on increasing environmental, social, and governance (ESG) investment.
It also leads to improved consumer trust and higher sales. Studies indicate that climate-conscious consumers prefer labelled products. In markets like the EU, organic rice, seafood, and textiles from carbon-labelled brands command higher prices.
For Vietnamese companies looking to integrate carbon labelling into their strategy, a step-by-step approach can make the transition smooth and effective.
Pilot carbon labelling programmes in key sectors are critical, with a focus on industries where carbon labelling is already gaining momentum, such as textiles, seafood, agriculture, and furniture.
The process must start with one or two high-export products and conduct a carbon footprint analysis to understand emissions sources. Industry associations must also work with international partners to ensure the label aligns with EU and US standards.
Collaboration with certification bodies is also key, and partnering with recognised organisations such as the Carbon Trust (UK), TÜV Rheinland (Germany), or SGS (Switzerland) for certification is advised, as is engaging with Vietnamese regulatory bodies to advocate for government incentives similar to South Korea’s model.
Another vital part of the process is to leverage green financing and government incentives to access ESG-linked loans and grants that support supply chain improvements. Alongside this, there needs to be a move to propose carbon labelling incentive programmes through the Vietnam Chamber of Commerce and Industry or the Ministry of Industry and Trade.
The future of Vietnam’s export competitiveness is green. The world is moving towards sustainable trade, and carbon-labelling is no longer optional for businesses that want to thrive in international markets. By learning from successful global initiatives, Vietnamese companies can turn carbon transparency into an economic advantage rather than a compliance burden.
The time to act is now. Companies that lead in carbon labelling will not only future-proof their businesses but also shape Vietnam’s reputation as a responsible trade leader.
In the first quarter of 2025, an additional 588 million USD in foreign direct investment (FDI) poured into Binh Duong Province’s industrial parks, marking a 232% increase compared to the same period in 2024 and reaching 53.43% of the 2025 annual plan, as reported by the provincial Management Board of Industrial Parks on March 26.
Of the 588 million in FDI USD invested in industrial parks during the first quarter, there were 25 new investment projects with a total registered capital of more than 60.2 million USD and 26 projects with additional capital adjustments, contributing nearly 528 million USD in increased capital.
With this positive investment attraction in the first quarter, industrial parks in Binh Duong have so far attracted 3,252 active projects, including 2,561 FDI projects with total registered capital of 31.57 billion USD and 691 domestic investment projects with total registered capital of 93.664 trillion VND.
According to the Management Board of Industrial Parks in Binh Duong, 10 new projects have become operational in the first quarter. Currently, the province’s industrial parks have 2,706 active business and production projects, including 507 domestic projects and 2,199 FDI projects.
With effective operations, the estimated business and production targets for the first quarter of 2025 in the province’s industrial parks exceeded 11 billion USD, increasing by 7.72% compared to the same period last year and reaching 31.49% of the annual plan. Export turnover surpassed 6.34 billion USD, up 9.22% year on year, achieving 25.36% of the annual plan. Taxes and budget contributions reached nearly 175.4 million USD, increasing by 10.23% year on year and fulfilling 25% of the annual target.
Binh Duong currently has 29 industrial parks with a total planned area of 12,746 hectares. Of which, 28 industrial parks are already operational, covering a total of 12,046 hectares.
According to the Binh Duong Provincial Master Plan for 2021-2030, with a vision to 2050, which was approved by the prime minister, the province is planned to develop 48 to 50 industrial parks with a total planned area of 25,000 hectares.
