Why Does The Vietnam Tourism Property Market Excite Experts?

Editor: Cheyenne Hollis
Pages 18, Dot Property Magazine ISSUE 029 WINTER 19/20

The Vietnam tourism property market is still relatively new, but it is a segment many experts have pointed to as having the potential for strong development. That’s due to rising foreign and domestic tourism alongside a growing number of appealing holiday destinations. Figures presented by the Vietnam Real EstateAssociation (VNREA) found that 15 million foreign tourists visited Vietnam last year, more than tripling the number of international guests travelling to the country 10 years ago. Additionally, it is estimated that Vietnam has more than 80 million domestic tourists annually, a total that is four times higher than the previous decade. This growth comes even as the country hasn’t promoted itself as a tourism hub all that well.“Vietnam had great natural resources that we’re attracting more and more foreign tourists, but the country had failed to promote national parks as tourist destinations,” LocalFinance Expert, Dr Nguyen Tri Hieu, stated. He continued, “The nation’s national parks might protect animals, but they didn’t serve tourists, even though they were great places to enjoy a holiday or short break.” However, there has been some tourism infrastructure developed in popular locations like Da Nang. And while there are many international-standard projects in some locations, the Vietnam tourism property market still has room for future growth.“The domestic and international tourism industries held opportunities for investors due to the rising number of new customers,” Nguyen Tran Nam, VNREA Chairman, told the media at a recent event. “Developing projects in the old way would not ensure competitiveness or suit customers’ demands.”One way to do this is to create new hospitality products, something Robert McIntosh, Executive Director of CBRE Hotels in AsiaPacific, said was already happening. He cited the building of coastal shophouses and shop villas in Phu Quoc and Ha Long as an example of how developers were ensuring the Vietnam tourism property market was adapting.“To carry growth forward, hospitality real estate developers in Vietnam will have to go through market diversification, paying attention to potential non-traditional areas such as Nam Hoi An, Binh Thuan, and Ba RiaVung Tau, as well as diversifying their product offerings and bringing in professionals to manage their properties,” McIntosh added. One of the leading developers in the Vietnam tourism property market is BIM Land who has completed a number of notable projects on Phu Quoc that have helped the island become a world-class destination. The developer’s next launch is Park Hyatt Phu Quoc, which will be the first resort under the Park Hyatt brand in Vietnam. Located in the southwest of Phu Quoc, ParkHyatt sits on a 65-hectare land plot along the coastline that places it between the beaches and green hills of the island. The project is a 30-minute drive from Phu QuocInternational Airport and is also close to DongDuong, the island’s main town. The resort will begin operations later this year and will serve as another milestone for the Vietnam tourism property market. WHY DOES THE VIETNAM TOURISM PROPERTY MARKETEXCITE EXPERTS? 19

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