Saigon Sheraton is probably the nicest hotel in the city right now. It's priced pretty much on par with the Caravelle next door.
The hotel is not priced for what a Vietnamese can buy a house for. It's priced on the international market.
I have stayed there three times and a very nice stay each time. Upgraded wach time to a junior suite. Lounge access with evening cocktails and free wireless internet (when it's working...this is Vietnam after all).