Vietnam’s resort and second-home segment boomed in 2015 and 2016, reports VietnamNet Bridge, with major projects established in destinations like Phu Quoc, Danang, Nha Trang, Quang Ninh, Quy Nhon, and Sapa.
At a recent seminar on the second-home market held in Hanoi, Minister of Construction Pham Hong Ha warned that there may be an oversupply of high-end resorts and second-home villas on the market.
“According to our ministry’s figures, there are currently thousands of unsold products in stock, not including the thousands of units that are in the pipeline in the coming years,” Ha said.
The Ministry of Construction is setting up a plan to review the development of the resort and second home market in order to ensure this market develops in a sustainable way.
However, Trinh Van Quyet, chairman of FLC Group, said: “There might be a threat of oversupply in the coming time, but this segment still has more room to grow.”
Quyet noted that 10 years ago most people considered travelling as a luxury. However, since the 2000s, demand has increased sharply.
“The reality is that FLC’s hotels and resorts were fully occupied during the hot seasons, and the same situation could be seen in facilities as well.”
Quyet stated that increasing incomes, more young people travelling and spending, and globalisation have opened more opportunities for the development of the resort and second-home segment in Vietnam.
“Compared to neighbouring countries such as Thailand, we can see that Vietnam’s resort development has not yet matured, and there is still more room for development,” Quyet said.
According to VNAT, in order to reach the target of 17-20 million international tourists and 82 million domestic tourists in 2020, hotel and resort facilities must be upgraded.
Doan Van Binh, deputy chairman of the Vietnam Resort Property Association, said that resort properties were upgrading to international standards and that the resort market still has potential.