Lumen Vietnam Fund

Blog

HCMC hotel tariffs soar by 20% in Q2

HCMC hotel tariffs soar by 20% in Q2

Average hotel room rates in HCMC rose by 20% year-on-year in the second quarter of the year to VND2.4 million (US$92) a night amid strong demand.

Average occupancy was over 70%, driven by demand from international visitors, businesses and Meetings, Incentives, Conferences, and Exhibitions tourists, according to a recent report by property consultancy Savills.

Supply remained largely unchanged at around 17,000 rooms but for some marginal increases mainly due to the expansion of some three-star hotels. The market is seeing mostly upgrades rather than new developments, the report said.

Room rates rose even though the number of flights to the city fell by 4% due to higher fuel costs and airfares. In the first six months, the number of foreign visitors jumped by 50% year-on-year to 6.4 million, official data shows.

In the upscale segment, real estate consultancy Avison Young recorded average room rates of around VND5 million a night at five-star hotels, with occupancy consistently at 75%-80%.

Average rates at four-star hotels were around VND3.5 million, while occupancy was 72%-78%.

Demand for upscale accommodations remained stable from international visitors and business customers. The limited new supply meant existing hotels did not face much competitive pressure.

Property services firm JLL reported a 19.3% year-on-year increase in revenue per available room at HCMC hotels in the first quarter due to both higher tariffs and occupancy rates.

Savills said HCMC is not expected to see any major new hotel projects this year. By 2029, some 900 new four- and five-star rooms are expected to be added, almost all in the former District 1.

But supply will be unchanged in the short term, helping existing hotels maintain occupancy and room rates.

Analysts said, however, as customers increasingly prioritize brands and service quality, the limited supply might not benefit all hotels, and older properties, self-operated hotels, and those lacking investment could face greater pressure. These would need to renovate or reposition themselves to remain competitive, they added.

Mauro Gasparotti, senior director and head of hotel advisory for Southeast Asia at JLL, said: "The competition is increasingly being determined by quality, brand, and the ability to invest in upgrades."

Over the medium and long terms, the market is expected to attract more international brands. Avison Young said Caption by Hyatt in the Ba Son area is among the developments to watch.

In 2027-2028, brands including Nobu Hotel Ho Chi Minh City, Four Points by Sheraton and JW Marriott in Can Gio are expected to enter the upscale segment.

According to consulting firms, the hotel industry outlook remains positive, supported by growing international visitor numbers and the recovery of tourism across the Asia-Pacific.

HCMC hopes to attract 61 million visitors and generate about VND330 trillion in tourism revenues in 2026.

Source: Phuong Uyen

Photo: Photo by Unsplash/Hannah Lazar

Latest Posts

Aeon to ramp up investment in Vietnam through 2030

Aeon to ramp up investment in Vietnam through 2030

Vietnam is Aeon’s most important market in the region, with the Japanese retail giant planning to allocate the majority of its Southeast Asian investment capital to the Vietnamese market, said Tezuka Daisuke, CEO of Aeon Vietnam.

He made the remarks at a press conference on September 10 ahead of the October 3 opening of Aeon Mall Hai Duong, adding that Aeon’s total investment in Vietnam has reached approximately US$1.5 billion.

By 2030, Aeon plans to triple the scale of its operations in Vietnam from current levels, with investment expected to increase accordingly to support the expansion.

Vietnamese consumers are quick to adapt to emerging trends and changing lifestyles. This growth is creating significant opportunities for modern retail, one of Aeon’s core businesses.

Tezuka shared that Aeon began studying the Vietnamese market in 2008 through its financial services business. Since the group developed its first shopping mall in Ho Chi Minh City in 2014, it has now been operating a chain of Aeon branded stores across the country.

Following the country’s development for a decade, he said he has gained strong confidence in its growth prospects. In-depth data analysis has reinforced his view of Vietnam as a rapidly developing market with significant room for further growth, particularly in modern retail.

Aeon targets fourfold increase in profit by 2030

The Japanese retail group is also targeting operating revenue of ¥300 billion in Vietnam by 2030, with profit expected to increase fourfold from the 2026 level.

As of August 2026, Aeon operated nine shopping malls, 40 supermarkets, 71 stores, 16 department store and supermarket centers, 182 convenience stores and two pharmacies in Vietnam.

By the end of this year, Aeon is expected to open Aeon Mall Hai Duong and three additional shopping malls in Hai Phong, Thanh Hoa and Quang Ninh.

Alongside accelerating the expansion of its physical store network, Aeon is pursuing other growth strategies, notably expanding into e-commerce.

Tezuka said the rapid development of the retail market and significant shifts in consumer demand have prompted Aeon to invest heavily in its online business alongside its physical store network.

Aeon also plans to apply technologies and expertise from overseas markets to improve its supply chain, covering production, distribution and delivery to consumers as efficiently as possible.

The group is also looking beyond the domestic market, stepping up research and development of products under its TopValu private-label brand.

These products are manufactured to high Japanese quality standards while being offered at reasonable prices to suit the majority of local consumers, rather than being limited to a small customer segment.

With Aeon Mall Hai Duong scheduled to open on October 3, Aeon will continue working with potential suppliers in Hai Duong and Hai Phong, providing training and support to help them meet Aeon’s requirements. The goal is to enable these suppliers to produce TopValu products for Aeon’s Vietnam network and eventually develop them for export.

Vietnam, France seek to deepen Comprehensive Strategic Partnership

Vietnam, France seek to deepen Comprehensive Strategic Partnership

General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam and French President Emmanuel Macron agreed to effectively implement existing cooperation mechanisms, and explore deeper sectoral cooperation to meet development needs in the new context.

General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam and French President Emmanuel Macron agreed on new directions to make the Vietnam-France Comprehensive Strategic Partnership deeper, more substantive and effective at their talks in Paris on September 10 (local time), according to the Vietnam News Agency.

President Macron congratulated Vietnam on the major achievements it has made in socio-economic development in recent years. Hailing Vietnam’s growing role and stature in the region and on the international stage, the leader highlighted the longstanding ties between the two peoples and affirmed France’s readiness to stand alongside Vietnam in its new era of development.

President Macron stressed that General Secretary and President Lam’s visit provides an opportunity for the two countries’ high-ranking leaders to exchange views and set new directions to further deepen the Comprehensive Strategic Partnership.

General Secretary and President Lam congratulated France on its outstanding achievements and spoke highly of Paris’s important role and position on the international stage. He affirmed that Vietnam’s decision to attach importance to France and choose it as the first EU member state with which to establish a Comprehensive Strategic Partnership is a clear testament to the high level of political trust and the determination to elevate bilateral ties to a new level.

The two leaders welcomed the strong and substantive progress in bilateral ties nearly two years after the relationship was elevated to a Comprehensive Strategic Partnership.

Looking ahead, they agreed to maintain regular exchanges at all levels and through all channels, including the Party, Government, National Assembly and people-to-people exchanges, effectively implement existing cooperation mechanisms, and explore deeper sectoral cooperation to meet development needs in the new context.

On defence and security, the two sides agreed to further strengthen and expand cooperation in military medicine training, coordinate efforts to combat crime, and share information on criminal activities, particularly organised and transnational crime. Vietnam asked France to continue supporting efforts to address war consequences, particularly the search for missing military personnel and the exchange of wartime memorabilia.

In the areas of economy, trade and investment, the two leaders concurred to pursue new, strategic and long-term areas of cooperation within the framework of the Comprehensive Strategic Partnership, with a focus on developing strategic industries and services with broad spillover effects. In particular, they agreed to promote value-chain partnerships based on the model of “French technology – Vietnamese manufacturing – regional and global supply,” helping the two countries’ key products, including processed and manufactured goods and agricultural and food products, become part of global supply chains.

The French side welcomed the signing of a number of cooperation documents during the visit, including agreements covering realms of importance amid the current global context.

General Secretary and President Lam called on both sides to continue effectively implementing the EU-Vietnam Free Trade Agreement (EVFTA), and urged France to soon complete the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) to provide fresh impetus for investors. He also called on France to encourage the European Commission (EC) to remove the “yellow card” on illegal, unreported and unregulated (IUU) fishing at an early date, supporting Vietnam’s efforts to develop fisheries sustainably.

Looking to the future, the leaders agreed to fully tap France’s strengths as a leading scientific power in Europe and officially make science and technology cooperation a new and key pillar of bilateral ties. Breakthrough efforts will focus on strategic areas such as aerospace, critical minerals, quantum technology, clean energy, and research for sustainable development and climate change response.

General Secretary and President Lam suggested the two countries expand scientific research, including space science, and promote technology transfer and the mastery of technologies. He also called on France to support Vietnam in gradually developing quantum technology.

In this regard, President Macron expressed his hope that the two countries would soon launch major and new projects in strategic science and technology fields.

The two sides will also fully tap the potential of traditional areas of cooperation and shift toward more inclusive and effective partnership models.

They will step up cultural and people-to-people exchanges through the organisation of cultural weeks and days in each country, with the Vietnam Days in France programme scheduled for October 2026 as an immediate priority. General Secretary and President Lam suggested France simplify visa procedures for Vietnamese citizens to boost tourism and people-to-people exchanges.

The French side affirmed its readiness to support Vietnam in the development of the Museum of the Communist Party of Vietnam. President Macron said France would continue to actively support Vietnam in developing its cultural industries, an area in which France has strengths, as well as provide additional archival materials on President Ho Chi Minh.

France will also continue to promote extensive cooperation with Vietnam in health care and education and training, he added.

General Secretary and President Lam expressed his sincere appreciation to the French side for returning a Dong Son bronze drum to Vietnam as part of the two sides’ commitment to combating the illicit trafficking of cultural property, and for donating several artefacts to the Museum of the Communist Party of Vietnam.

Praising the active work of the French Institute in Vietnam, he welcomed France’s cooperation in organising a series of Vietnamese cultural events in Paris in October 2026. He also called on France to further support Vietnam in researching, restoring, preserving and promoting the values of its heritage and historic structures, including Long Bien Bridge in Hanoi and old French villas, with the involvement of French architects.

On education and training, the two sides agreed to effectively implement existing cooperation agreements, particularly those supporting French-language teaching in Vietnam.

General Secretary and President Lam called for expanding cooperation in high-quality human resources to sectors aligned with current practical and strategic needs, including semiconductors, new energy and railways.

In health care, the leader highlighted the role of the Pasteur Institutes in Vietnam and called on the two sides to elevate their cooperation, with a view to making Vietnam a leading hub for the application of modern medical technologies in Southeast Asia. He also called for continued scholarships for medical students in Vietnam.

On this occasion, General Secretary and President Lam proposed France continue facilitating the deep integration and strong development of the Vietnamese community there, and establish mechanisms to fully tap the potential of Vietnamese experts, intellectuals and scientists, enabling them to contribute to their host country as well as bilateral ties.

Regarding regional and international issues, President Macron highly valued and shared the Vietnamese leader’s profound views at the recent Shangri-La Dialogue on upholding international law and promoting multilateralism.

The two leaders agreed to strengthen coordination and mutual support at multilateral forums, particularly the United Nations and within the ASEAN-EU framework.

On maritime issues, the two sides reaffirmed the importance of maintaining peace, stability, security, safety and freedom of navigation and overflight, ensuring unimpeded trade and the right of innocent passage in the East Sea and around the world. They underscored the need to settle disputes by peaceful means on the basis of respect for international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

On this occasion, General Secretary and President Lam and President Macron witnessed the signing and exchange of a number of important cooperation documents between ministries and agencies of the two countries, covering security, health care, aerospace, science and technology, and critical minerals.


Vietnam's fruit, vegetable exports eye 10 billion USD milestone

Vietnam's fruit, vegetable exports eye 10 billion USD milestone

To reach 9.5–10 billion USD, the most important thing is to strictly comply with market requirements, according to an insider.

Hanoi (VNA)– Vietnam's fruit and vegetable exports reached 6.02 billion USD in the first eight months of 2026, putting the sector on track to approach the 10 billion USD mark for the full year if quality and traceability are maintained.

The strong performance came as Vietnam's total agro-forestry-fishery exports neared 49.31 billion USD during the period, up 7% from a year earlier. Fruit and vegetable shipments alone hit around 6.02 billion USD, up 24.9% year-on-year.
Dang Phuc Nguyen, Deputy Secretary General of the Vietnam Fruit and Vegetable Association, forecast that the fruit and vegetable exports could bring home 9.5–10 billion USD this year.
September and October are expected to be peak months, with monthly export revenue potentially exceeding 1 billion USD, he said.
Durian remains the biggest growth driver. Exports of the fruit are projected to generate around 4–4.5 billion USD this year, accounting for roughly 40–45% of total fruit and vegetable earnings.
China continues to be Vietnam's largest market, accounting for 58.9% of total shipments. The US ranks second with 7.6%, followed by the Republic of Korea (RoK) with 4.2%.
In the first seven months of 2026, fruit and vegetable exports to China rose 33.1% year-on-year, while those to the US and the RoK increased 14.4% and 9.6%, respectively.
Nguyen Van Muoi, Chairman of the Tropical Agriculture Business Club, said China remains the largest market thanks to its strong demand and geographical proximity.
While diversifying export markets is necessary, China will be difficult to be replaced in the short term, he said. India offers potential opportunities, but more time is needed to expand exports there due to differences in consumer preferences.
Quality – key to reaching target
As durian serves as the main driver of fruit and vegetable exports, maintaining quality has become crucial to achieving the growth target.
“To reach 9.5–10 billion USD, the most important thing is to strictly comply with market requirements,” Nguyen said, stressing the need for transparent traceability and clear production and packaging unit codes.
For durian, the sector needs to shift from rapid expansion in growing areas and output toward higher quality, he added.
According to Muoi, products must meet standards, have traceable origins, and undergo quality control from the growing areas. Meeting VietGAP requirements should serve as a foundation before producers move toward higher international standards.
At the August 2026 Government press conference, Deputy Minister Dang Ngoc Diep said the Ministry of Agriculture and Environment will step up trade promotion and diversify export markets, with a focus on expanding market share in promising destinations such as India, Australia and New Zealand.
The ministry also plans to promote the export of frozen durian, processed products and other suitable fruit and vegetable products, Diep added.
The results recorded in the first eight months provide a solid basis for fruit and vegetable exports to reach 9.5–10 billion USD this year. By making the most of peak harvest seasons, expanding processing and maintaining strict quality control from growing areas to border gates, Vietnam's fruit and vegetable sector could set a new export record in 2026 while laying a stronger cornerstone for sustainable growth in the years ahead.​

See all blog