Described in 2024 as a nation that has amazing natural beauty combined with world-class levels of hospitality, Vietnam has risen significantly as one of Southeast Asia’s leading tourist destinations.
While it has become a perennial favourite for those seeking adventure and cultural experiences, the jewel of Indochina has emerged of late as a possible hub for luxury tourism within the region.
Per an October 2025 report from Ken Research, the Vietnamese luxury tourism market is worth around US$3.2 billion thanks to five years of steady industrial growth which appears to have been little affected by the pandemic.
On a domestic level, such growth has been driven by significantly higher amounts of disposable income among the country’s upper and middle classes.
At the same time, the demand for personalised travel experiences fuelled by social media influencers has also driven up the numbers of those coming to the country for luxe accommodations and destinations.
But why exactly is luxury tourism booming in Vietnam and how can the country make the most out of the trend?
What Vietnam has going for it
Hailed for being one of the hidden gems of Southeast Asia, Vietnam has long taken pride in its majestic natural landscapes, the richness of its multi-ethnic culture, as well as its exceptional gastronomy.
Post-COVID, Vietnam was also considered the regional tourism sector’s comeback kid, regaining 98 percent of its 2019 arrival numbers in the first quarter of 2025, considerably faster than any of its neighbours.
The fact that the country is perceived as safer than other nations within Indochina has also boosted its appeal among wealthy Chinese travellers who come to shop, dine, and enjoy immersive cultural experiences.
As a result, Vietnam has welcomed a number of leading luxury hospitality brands into its borders in recent years; the likes of Capella, the Ritz-Carlton, JW Marriott, and Regent setting up shop in emergent locations like Phu Quoc and Con Dao, taking travellers away from the crowded bustle of Hanoi and Ho Chi Minh City.
Greater connectivity, especially with airlines adding more direct inroads to the country, and the impending opening of the new Long Thanh International Airport within this year have also helped; as have relaxed visa policies for several nations.
Better transportation infrastructure, especially when it comes to high-speed rail travel and luxury rail travel, also worked in Vietnam’s favour; as have its efforts in promoting sustainable travel and tourism.
Making the most of the trend
In which case, how can an emergent powerhouse like Vietnam take and maintain the lead when it comes to luxury tourism?
One key point of consideration is that its tourism authorities need to shift from conventional to personalised luxury, essentially offering truly unique experiences tailored to individual preferences, especially when it comes to gastronomic and cultural tourism which are considered a priority by up to 65 percent of foreign high-value travellers.
Shifting from sustainable to regenerative tourism also matters, as it gives local communities a considerable slice of the economic pie whilst safeguarding their heritage, environment, and livelihood for generations to come.
Most importantly, Vietnam needs to step up its game with regard to tourism-specific human resources through the following measures:
- Inclusivity training to get a better understanding of the diverse cultural backgrounds of those travelling to Vietnam;
- Service quality training to bring staff skills to global standards;
- Language training to take down barriers to understanding and optimal service delivery; and
- Expansion of employee skill-sets to reflect expanded roles in the fields of luxury tourism and hospitality.
