Business · Vietnam Bureau
Hoi An's heritage at risk as commercialization drives locals away
Vietnam's UNESCO-listed ancient town faces an identity crisis as soaring property costs and commercial pressures force original residents to abandon their homes, threatening the cultural authenticity that draws millions of visitors annually.
LSN Vietnam ·

Hoi An is experiencing a demographic shift that threatens to fundamentally alter the character of Vietnam's most visited heritage site. Approximately 40 percent of original homeowners have relocated from the central Vietnamese town, according to recent assessments, leaving behind a landscape increasingly dominated by commercial enterprises rather than resident families.
The exodus reflects a dramatic transformation in the town's rental market. Monthly rents for state-owned properties in Hoi An's historic core have climbed to hundreds of millions of dong, pricing out local families and incentivizing property owners to lease to businesses catering to tourists rather than maintaining residential use.
This economic pressure creates a complex challenge for preserving Hoi An's cultural fabric. While tourism has brought unprecedented prosperity to the town and secured UNESCO recognition for its well-preserved 15th-century architecture, the financial incentives associated with visitor-oriented commerce have fundamentally reshaped the incentive structure facing residents and property owners.
Local authorities face mounting pressure to balance economic development with cultural preservation. The gradual depopulation of original residents risks transforming Hoi An from a living community into an open-air museum, potentially undermining the authentic cultural experience that forms the foundation of its international appeal and heritage value.
The situation highlights broader tensions facing heritage sites across Southeast Asia as rapid tourism growth intersects with rising urbanization and property values, testing whether ancient towns can maintain their cultural integrity while accommodating modern economic forces.