As Airbnb expands in Vietnam, concerns over security, overcrowding and residential quality of life continue to divide opinion.
Ho Chi Minh City’s decision to ease restrictions on Airbnb-style apartment rentals after more than a year of tighter controls reflects a broader effort to balance the growth of the sharing economy with modern urban management.
However, without appropriate regulatory solutions, disputes surrounding the model are likely to continue.
Residents complain about disruptions
A notice banning Airbnb-style operations at an apartment complex in Ho Chi Minh City. Photo: T.C
After a period of strict regulation, short-term apartment rentals such as Airbnb were partially loosened under Decision No. 19 issued by the Ho Chi Minh City People’s Committee, which took effect on April 25, 2026.
The new rules are more flexible than Decision No. 26 introduced more than a year earlier.
From the perspective of residents, however, not everyone welcomes the change.
Ha, a resident in Ho Chi Minh City, said she opposed the decision after experiencing repeated disturbances linked to Airbnb operations. She cited excessive noise from neighboring serviced apartments and overcrowding at shared swimming pools.
Such complaints are not isolated cases.
The city’s Department of Construction recently reported conflicts at several apartment complexes, including Ha Do Centrosa in Hoa Hung Ward, where short-term tenants were accused of overusing common facilities and affecting building management operations.
Authorities also noted growing differences in interests between permanent residents and apartment owners operating short-term rental businesses.
According to a report from the management board of Millennium apartment complex in Khanh Hoi Ward, more than 7,100 short-term guests of various nationalities stayed at the building during the first six months of 2024 alone.
The complex also saw the emergence of social security problems, some of which were later dismantled by police.
Building infrastructure, including elevators and corridors, was reportedly subjected to excessive use and deterioration.
At the time, 350 out of 728 apartments at Millennium - nearly 48% of total units - were being used for Airbnb-style rentals.
Economic benefits worth billions
Despite these concerns, Ho Chi Minh City’s earlier move to restrict Airbnb operations received support from many residents.
However, only three months after Decision No. 26 was introduced, Vietnam’s Department of Legal Document Inspection and Administrative Violation Management under the Ministry of Justice raised objections.
The agency argued that banning apartment rentals through Airbnb was neither legally sound nor sufficiently justified.
Under Vietnam’s Civil Code, apartment owners who do not reside in their properties retain the right to lease them as part of their lawful property rights.
Annie, a Ho Chi Minh City resident who owns nine Airbnb rental apartments, said she lost nearly VND 200 million after the model was banned last year.
Others who rented apartments from owners in order to operate Airbnb businesses suffered even greater losses, she added.
Many received no rental support from landlords after the restrictions took effect, while also struggling with declining customers and difficulties transferring lease contracts.
From an economic perspective, Airbnb generated around VND 16 trillion, or roughly USD 630 million, in total accommodation and related spending in Vietnam during 2024, according to a report by Oxford Economics.
A typical Airbnb guest in Vietnam stayed an average of three days and spent approximately VND 2.8 million per day on non-accommodation activities such as dining, shopping and transportation.
The report estimated that Airbnb-supported activities helped sustain around 64,100 jobs across related industries, generating total wages of approximately VND 6.5 trillion.
Researchers concluded that spending by both guests and hosts created extensive ripple effects throughout the domestic economy.
In Ho Chi Minh City alone, preliminary statistics from the Ho Chi Minh City Real Estate Association showed that 24 apartment complexes, involving around 8,740 owners and residents, were using online tourism platforms for short-term rentals.
The model was estimated to support roughly 10,000 jobs while contributing to local economic and social development.
Ban or regulate?
Airbnb guests contributed around VND 16 trillion to Vietnam’s economy in 2024. Illustrative photo: Chi Hung
Ho Chi Minh City’s decision to reopen short-term rental services reflects a broader trend toward balancing economic innovation with urban governance.
According to the Department of Construction, the city’s policy direction is based on the principle of “not banning, but ensuring transparency and management within a regulatory framework.”
Real estate expert Le Quoc Kien said the easing of restrictions could increase short-term accommodation supply as more apartment owners return to the market.
Over the longer term, he believes the market may gradually develop hybrid apartment-hotel models that allow flexible combinations of residential living and commercial rentals.
However, if left uncontrolled, this trend could fundamentally change the operation of apartment buildings originally designed for stable residential use.
Conflicts between long-term residents and owners operating apartments for commercial purposes may therefore continue to fuel controversy.
Several ASEAN countries have adopted tighter regulatory frameworks.
Thailand requires apartments rented for fewer than 30 days to meet standards similar to hotels, while many condominium projects reserve the right to restrict Airbnb operations for security reasons.
Malaysia allows building management boards and residents to vote on whether short-term rentals should be permitted.
Singapore largely prohibits private apartment rentals of less than three months to avoid the “hotelization” of residential areas.
Authorities in the Philippines have also tightened controls over guest registration and security at condominium buildings in Manila.
Le Hong Hanh, a finance lecturer at RMIT Vietnam, said Airbnb-style models clearly generate economic benefits by increasing accommodation supply, stimulating domestic tourism, creating additional household income and improving the use of idle assets.
Nevertheless, tensions between economic interests and residential quality of life are challenges faced not only by Vietnam but by many ASEAN countries.
Rather than repeating the mindset of “if it cannot be controlled, ban it,” most countries have chosen an approach of “allow, but regulate strictly,” she said.
For Ho Chi Minh City, Hanh suggested several measures that authorities could consider.
These include limiting the percentage of Airbnb apartments within each building to prevent residential complexes from effectively becoming disguised hotels, or capping the number of rental days allowed annually for each apartment.
She also proposed requiring hosts to place deposits or purchase liability insurance to cover risks such as property damage, security incidents or violations of building rules.
In addition, apartment units used for short-term rentals could face higher management fees.
Finally, short-term rental businesses should be required to fully comply with tax obligations, business registration procedures and guest information disclosure requirements.
“Buildings could charge higher management fees for apartments registered for short-term rentals. Many Airbnb hosts actually support this approach,” Annie told VietNamNet. “If authorities provide clear step-by-step guidance and establish proper rules for the sharing economy, Airbnb hosts will be willing to cooperate and even contribute more.”
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