Vietnam serviced apartment market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Vietnam Serviced Apartment Market Overview

• The Vietnam Serviced Apartment Market is valued at USD 1.1 billion, based on a five-year historical analysis. Growth is primarily driven by the increasing influx of expatriates, business travelers, and tourists, alongside rising demand for flexible living arrangements. The urbanization trend and the expansion of multinational companies in Vietnam have further fueled the need for serviced apartments, which offer a blend of home-like comfort and hotel-like services. Recent years have also seen a notable increase in demand from digital nomads and long-stay leisure travelers, reflecting broader shifts in work and travel patterns .
• Key cities dominating the market includeHo Chi Minh City, Hanoi, and Da Nang. Ho Chi Minh City stands out as the economic hub of Vietnam, attracting a significant number of foreign businesses and expatriates. Hanoi, the capital, is a focal point for government and diplomatic personnel, while Da Nang is increasingly popular among tourists and digital nomads, contributing to the overall growth of the serviced apartment sector. In both Hanoi and Ho Chi Minh City, Grade A serviced apartments account for a majority of supply, with new high-end projects concentrated in districts favored by expatriates and international organizations .
• The regulatory framework for serviced apartments was strengthened by theNational Technical Regulation on Tourist Accommodation Establishments (QCVN 07:2019/BVHTTDL) issued by the Ministry of Culture, Sports and Tourism in 2019. This regulation requires all serviced apartments operating as tourist accommodation to register with local authorities and comply with specific safety, hygiene, and service standards. The regulation covers operational licensing, fire safety, minimum service requirements, and periodic inspections, aiming to improve customer satisfaction and ensure a competitive environment among service providers, ultimately benefiting both residents and the tourism sector .

Vietnam Serviced Apartment Market Segmentation

By Type:The serviced apartment market can be segmented into various types, includingGrade A (Luxury), Grade B (Mid-range), Grade C (Budget), Extended Stay Apartments, and Boutique Serviced Apartments. Each type caters to different consumer preferences and budgets. Grade A apartments typically offer high-end amenities and services, targeting executives and long-term expatriates. Grade B apartments provide comfortable, mid-range options suitable for professionals and families. Grade C apartments focus on affordability and essential services, appealing to budget-conscious travelers. Extended stay apartments are designed for longer durations, appealing to business travelers, project teams, and expatriates seeking a home-like environment. Boutique serviced apartments provide unique, personalized experiences, often in smaller properties with distinctive design and tailored services .

By End-User:The end-user segmentation includesBusiness Travelers, Expatriates, Tourists, Families Relocating, and Government & Diplomatic Personnel. Business travelers and expatriates are the primary consumers of serviced apartments, seeking convenience, privacy, and flexibility during their stays. Tourists, especially those on extended visits, contribute significantly, particularly in urban centers and coastal cities. Families relocating for work or education often prefer serviced apartments for their home-like environment and support services. Government and diplomatic personnel require accommodations that meet specific international standards, further driving demand in this segment .

Vietnam Serviced Apartment Market Competitive Landscape

The Vietnam Serviced Apartment Market is characterized by a dynamic mix of regional and international players. Leading participants such as The Ascott Limited, Oakwood Worldwide, Frasers Hospitality, Marriott International, InterContinental Hotels Group (IHG), Hilton Worldwide, AccorHotels, Somerset Serviced Residence, Lotte Hotels & Resorts, Sun Group, Vinhomes (Vingroup), CapitaLand Vietnam, Novotel Suites Hanoi (Accor), Somerset West Point Hanoi, and Citadines Apart’hotel (Ascott) contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam Serviced Apartment Market Industry Analysis

Growth Drivers

• Increasing Foreign Investment:Vietnam has seen a surge in foreign direct investment (FDI), reaching approximately $30.0 billion in future, a 5% increase from the previous year. This influx is primarily driven by sectors such as real estate and hospitality, which directly benefit serviced apartments. The government’s favorable policies, including tax incentives and streamlined licensing processes, have made Vietnam an attractive destination for international investors, further stimulating the serviced apartment market.
• Rising Demand for Short-term Rentals:The demand for short-term rentals in Vietnam has escalated, with over 8 million international tourists visiting in future, a 14% increase compared to the previous year. This trend is fueled by the growing popularity of platforms like Airbnb, which has led to a significant rise in the occupancy rates of serviced apartments. As travelers seek more flexible and home-like accommodations, serviced apartments are increasingly becoming the preferred choice for both business and leisure travelers.
• Urbanization and Population Growth:Vietnam's urban population is projected to reach approximately 41% in future, up from 37% in 2020, according to the World Bank. This rapid urbanization is driving the demand for housing solutions, including serviced apartments, particularly in major cities like Ho Chi Minh City and Hanoi. The increasing population, estimated to grow by 1.2 million annually, necessitates more diverse living options, making serviced apartments a viable solution for urban dwellers.

Market Challenges

• Regulatory Compliance Issues:The serviced apartment sector in Vietnam faces significant regulatory hurdles, including complex licensing requirements and inconsistent enforcement of zoning laws. In future, over 25% of serviced apartment operators reported difficulties in obtaining necessary permits, which can delay operations and increase costs. This regulatory environment creates uncertainty for investors and operators, potentially stifling market growth and innovation in the sector.
• High Competition Among Providers:The serviced apartment market in Vietnam is becoming increasingly saturated, with over 1,500 serviced apartment units available in Ho Chi Minh City alone in future. This intense competition has led to price wars and reduced profit margins for operators. As new entrants continue to emerge, established providers must differentiate their offerings through enhanced services and unique experiences to maintain market share and attract guests.

Vietnam Serviced Apartment Market Future Outlook

The future of the Vietnam serviced apartment market appears promising, driven by ongoing urbanization and a growing expatriate community. As the economy continues to recover post-pandemic, demand for flexible living arrangements is expected to rise. Additionally, advancements in technology and sustainability practices will likely shape the market, with operators increasingly adopting smart solutions to enhance guest experiences. The focus on customization and co-living arrangements will further cater to diverse consumer preferences, ensuring sustained growth in the sector.

Market Opportunities

• Expansion of E-commerce and Remote Work:The rise of e-commerce and remote work trends has created a demand for temporary housing solutions. With over 70% of companies in Vietnam adopting flexible work policies, serviced apartments can cater to professionals seeking short-term accommodations, thus tapping into a growing market segment that values convenience and flexibility.
• Growth in Tourism Sector:Vietnam's tourism sector is projected to generate $35 billion in revenue in future, driven by increased international arrivals. This growth presents a significant opportunity for serviced apartments to attract tourists seeking comfortable and cost-effective lodging options. By enhancing marketing strategies and partnerships with travel agencies, operators can capitalize on this expanding market.