Vietnam’s hospitality industry has strong growth momentum, supported by record visitor demand, artificial intelligence and extensive transport investment. However, service, access and environmental gaps could prevent the country from realising its full tourism potential.
Vietnam welcomed more than 21 million international visitors during 2025, strengthening its position within Southeast Asia. The expansion creates opportunities for hotels, restaurants, transport operators and emerging destinations.
John Gardner, CEO of Optimum Hospitality, believes technology and infrastructure can reshape the market. Drawing on more than 30 years of Asia-Pacific hospitality experience and two decades in Vietnam, he also identifies language barriers, airport congestion and environmental management as pressing concerns.
“Many things need to happen to help tourism go forward, but I’m very confident and positive for the future of tourism in Vietnam,” Gardner said.
AI moves deeper into hotel operations
Gardner considers artificial intelligence the most significant transformation currently entering hospitality.
“I think the biggest transformation right now is, like every industry in the world, adoption of AI within the industry,” he said.
Hotels can use AI to support research, administrative tasks, guest communication, pricing and operational decision-making. Revenue management could experience particularly substantial change because it relies heavily on analysing demand, competitor rates and booking patterns.
Gardner expects AI to assume more of this analytical workload. Employees may initially supervise its recommendations, but advanced systems could eventually research market conditions and implement pricing decisions independently.
“It may get to a point, not immediately but a little bit down the track, you don’t actually need a revenue manager. AI will do it,” he said.
However, technology’s value does not depend solely on reducing labour costs. Automating repetitive administration could allow hotel teams to dedicate more time to guests.
“Those staff will have more time to spend with the guests,” Gardner said. “They’ll be able to give them better service instead of being tied up with back-of-house administrative work.”
Language gaps affect traveller confidence
Personal interaction remains critical, particularly outside major hospitality centres such as Ho Chi Minh City, Hanoi and Da Nang.
Gardner identified limited English-language capability as a challenge for international visitors exploring less-established destinations. Everyday interactions, including ordering meals or requesting assistance, can become frustrating when travellers and service workers lack a shared language.
Hotels can address the issue through staff development and multilingual recruitment. Meanwhile, real-time AI translation could make communication easier in hotels, restaurants and tourism businesses.
Better communication would help distribute tourism beyond Vietnam’s established gateways. It could also improve traveller confidence, encourage longer journeys and strengthen the reputation of provincial destinations.
Infrastructure opens new tourism corridors
New airports, expressways and railways could transform access during the coming years. These projects can shorten travel times and connect visitors with destinations that currently receive less international attention.
“You’ve got airports, you’ve got expressways, you’ve got new railways,” Gardner said. “You’ve got so many things that are opening up the country to tourism.”
Southern Vietnam is positioned for major change as new airport capacity and supporting transport links develop around Ho Chi Minh City.
However, an airport cannot operate effectively in isolation. Expressways, railways and efficient ground transport must advance alongside terminal capacity. Otherwise, congestion may simply move from airport buildings onto surrounding roads.
Gardner said present airport conditions can negatively affect arrivals. Immigration processing, baggage collection and onward transport shape a visitor’s first impression before hotel check-in.
Entry policies influence destination choice
Vietnam offers electronic visas valid for up to 90 days with single or multiple entry. It also provides visa exemptions for eligible nationalities, including unilateral visa-free access of up to 45 days for travellers from selected countries.
Nevertheless, travellers who require visas may still compare the process with entry rules in competing Southeast Asian destinations.
Additional costs, application requirements or uncertainty can influence spontaneous trips. Clear instructions, reliable processing and easily accessible official information therefore remain important parts of destination competitiveness.
Hotels and travel companies can help by directing guests toward official entry guidance while avoiding guarantees about individual eligibility.
Higher-value tourism could bring stronger returns
Gardner argues that Vietnam should consider visitor value alongside arrival numbers.
“Should we look at the total numbers, or should we even have fewer numbers but people that are going to stay, spend more money, stay in five-star hotels and stay longer?” he asked.
Higher-value tourism could generate stronger returns for hotels, restaurants, attractions and local communities. Yet affluent visitors generally expect seamless transport, consistent service and well-managed destinations.
The strategy therefore requires more than adding luxury rooms. It depends on the quality of the complete journey.
Sustainability will shape repeat tourism
Environmental conditions also influence whether visitors recommend Vietnam or return.
Gardner highlighted renewable energy, water recycling and stronger environmental compliance. He also warned that visible waste at destinations such as Ha Long Bay can damage traveller perceptions.
“Those sorts of things have got to change because people will not return to Vietnam if they see those sorts of things,” he said.
International hotels can improve their own environmental performance, but clean destinations require cooperation from communities, authorities and tourism businesses.
Vietnam already possesses powerful hospitality growth drivers. If the country combines AI adoption and transport investment with better service, easier access and credible environmental management, it can turn rising arrivals into longer stays, greater spending and stronger visitor loyalty.
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