The Rise of Vietnam’s Middle Class: Asia’s Fastest-Growing Consumer Market and the Golden Era of a $34 Billion Industry

Vietnam’s Hospitality Sector Set for Record Growth

According to the Vietnam National Administration of Tourism, tourism revenue in 2024 is estimated to reach nearly $34 billion, a 23.8% growth compared to 2023.

Mordor Intelligence forecasts that the scale of Vietnam’s hotel market is expected to reach $5.88 billion in 2025 and $11.29 billion in 2030, with a compound annual growth rate (CAGR) of 13.94% in the same period.

In 2025, the Vietnam Tourism Industry also set an “ambition”: to achieve a total tourism revenue of about VND 980-1,050 thousand billion, reaching the milestone of VND 1 million billion.

Another notable aspect is the strong rise of the middle class, the dominant consumer force for products and services. The World Bank (WB) said that in recent years, the growth rate of the middle class in Vietnam is one of the highest in Asia, with about 1.4 million people added each year, opening up a potential domestic market for international brands. This, along with positive macroeconomic growth indicators, has propelled Vietnam into the golden age of tourism and accommodation.

According to Mr. Ramzy Fenianos, Regional Director of Development for Asia Pacific, Radisson Hotel Group, Vietnam has quickly become a premium tourist destination, attracting a diverse range of travelers, including leisure tourists, digital nomads, business travelers, and those seeking wellness experiences.

“Vietnam is experiencing rapid economic growth, increasing international connectivity, and a booming domestic tourism sector, making it a very attractive market. We see great potential in both the leisure and business travel segments, especially due to the diversity of experiences on offer, from urban stays to beach resorts and cultural destinations,” shared Mr. Ramzy.

Mr. Ramzy observed that Vietnamese guests are increasingly favoring short breaks, weekend staycations, and premium, quality, and unique experiences close to home. “Meanwhile, international travelers will be drawn to authentic local experiences, cultural elements, wellness services, and sustainable tourism trends. The demand for online bookings, flexible room reservations, and personalized journeys is on the rise. In the future, wellness tourism, digital innovation, and sustainability initiatives will be the main trends,” commented the Regional Director of Development for Asia Pacific, RHG.

Expansion Opportunities for Hotel Brands in Vietnam

Mr. David Jackson, CEO of Avison Young, stated that the new coastal destinations and national parks offer attractive investment opportunities. Meanwhile, Mr. Mauro Gasparotti, Senior Director of Savills Hotels in Southeast Asia, mentioned that the Vietnamese market is witnessing the emergence of new resort models, such as wellness retreats and all-inclusive resorts.

“These innovations will drive the next phase of development in Vietnam’s resort real estate industry, attracting major brands and shaping the industry’s future,” Mr. Mauro shared at an event last month.

Radisson’s senior representative also believed that other critical factors, such as improved infrastructure, government support for tourism, and increased international air connectivity, have enhanced Vietnam’s accessibility and tourism appeal. As a result, the Vietnamese accommodation market has become increasingly competitive, with renowned international hotel groups accelerating their expansion.

According to Avison Young’s statistics, while there were only about six major international hotel operators before 2000, ten more have joined in the last 15 years. Together, they own more than 60 hotel brands in Vietnam.

For Radisson, the first strategic step in its expansion plan in Vietnam was the simultaneous opening of several key projects in the second quarter of 2025, such as Radisson Blu Ha Long Bay and Radisson Resort Mui Ne. Recently, the signing ceremony for Radisson Hotel Westlake Hanoi, scheduled to open in 2028, also marked a new milestone for the brand in the capital.

“In Vietnam, RHG currently operates six hotels and has another six in the development pipeline. The group aims to become the leading international hotel brand in Vietnam by 2035, focusing on the mid-to-upper segments, serviced apartments, and lifestyle hotels, in line with prevailing international trends,” said Radisson’s senior representative.

However, this dynamic “playing field” requires brands to evolve, offering not only excellent products and services but also a deep understanding of the local market, changing consumer psychology, agility in technology adoption, and operational optimization. RHG emphasized the critical role of carefully integrating local culture through employee training programs and a sensitive awareness of traditions and distinctive Vietnamese service styles.

“While adhering to RHG’s global standards, the hotels offer personalized services with a Vietnamese touch, such as culturally inspired menus, traditional welcoming rituals, and customized guest experiences. The group prioritizes hiring local talent to ensure authentic interactions and leave a lasting impression on both Vietnamese and international guests,” Mr. Ramzy emphasized.