Vietnam, which was long known as a conflict zone, has emerged in the twenty-first century as one of the world’s most promising emerging tourism markets. Vietnam tourism industry receives more tourists than even India, a country much larger in size. In 2014, nearly 8 million tourists visited Vietnam, placing it 12th in the Asia Pacific region in terms of tourist arrivals. Vietnam tourism industry ranks 75th in the world in terms of travel and tourism competitiveness.
After experiencing double-digit growth rates from 2010 to 2013, the rate of increase in tourist arrivals has slowed in recent years. One of the reasons for the drop in tourist numbers in Vietnam is the failure of local authorities to maintain pristine attractions, as well as massive increases in pollution and traffic in recent years. Another factor that has had an impact on India is the security situation. Most tourists feel unsafe while traveling around Vietnam, which has been plagued by robberies, thefts, and muggings of tourists. In order to compensate for fewer arrivals, Vietnamese officials have raised visa fees, which has once again served as a disincentive to tourists.
Nevetheless, the fact remains that Vietnam has one of the most beautiful cultures, sights, and scenery in the region, which attracts a large number of foreign visitors. More people want to visit Vietnam, and if the Vietnamese authorities address issues such as security, visa costs, and so on, the tourism industry, which has been stagnant in recent years, will rebound.
The high cost is one of the factors preventing an influx of tourists. The cost of Vietnam tourism has recently risen rapidly due to high accommodation and general travel costs. The Vietnamese yuan has depreciated against the US dollar, making travel in Vietnam more expensive. But yet another significant reason is the shortage of reasonably priced, modern housing which dissuades the budget tourist.
In addition, there is a severe shortage of luxury hotels in Hanoi, which discourages HNI tourists from visiting Vietnam, which would help the tourism industry.
However, Vietnam has many such possibilities in the tourism business, and now is the ideal time and opportunity to put money and reap the benefits in the future.
Vietnam is the world’s 37th largest economy, with a population of 90.7 million people. Despite recent difficulties, the tourism industry is expected to expand significantly in the future. Vietnam’s tourism industry is expected to grow at a CAGR of XX.XX percent until 2020.
The Vietnam Tourism Industry Report Provides
VIETNAM TOURISM INDUSTRY
1. Market research for the Vietnam Tourism Market, including region-specific assessments and regional and global competition analysis
2. Market description, including identification of the key drivers and constraints
3. Identifying factors that can influence market scenarios, emerging prospective opportunities, and key companies that can influence this market on a global and regional scale.
4. .Thoroughly researched detailed competitive section, including profile pictures of big corporations and market shares.
5. Identifying and analyzing macro and micro factors influencing the Vietnam Tourism Market on a global and regional scale.
6. A comprehensive list of key market participants, as well as an analysis of their current strategic interests and key financial data.
7. Broad knowledge and insights into the major players in this industry, as well as the key strategies they use to sustain and grow in the studied market
8. Insights into the major countries/regions where this industry is thriving, as well as the regions that remain untapped.
Vietnam Tourism Industry’s Pre-Pandemic Performance and Prospects
In accordance with the World Economic Forum’s 2019 report, Vietnam’s tourism industry has advanced to the 63rd position out of 140 economies. Furthermore, Vietnam’s tourism industry was recognized in the following global and regional categories of the prestigious World Travel Awards in the same year:
Asia’s Leading Heritage Destination; Asia’s Best Golf Destination; Asia’s Leading Cultural Destination; Asia’s Leading Culinary Destination.
With the onset of the COVID-19 pandemic in 2020, Vietnam tourism remained committed to enforcing Political Bureau Resolution No. 08-NQ/TW. This resolution aims to make tourism a key economic sector in Vietnam and to put the Vietnam Tourism Development Strategy 2030 into action.
As a result, the existence of a coherent and consistent professional relationship between all various ministries and private stakeholders was critical in paving the way for the tourist industry sector’s success.
Why Should You Invest in the Vietnam Tourism Industry?
In accordance with Mckinsey, the tourism industry contributes significantly to Vietnam’s GDP and is expected to reach pre-pandemic levels of revenue by 2024. Because of its proactive government campaigns, resilient economy, and implementation of the zero-case-first approach.
The following are some business sectors with excellent opportunities for foreign investors:
Medical Tourism: When compared to other Asian countries, medical tourism in Vietnam has a significant impact on the tourism industry. In 2017, approximately 1 million international visitors came to Vietnam for medical treatment, spending approximately USD 2 billion.
Airport Infrastructure: Despite a thriving tourism industry, Vietnam’s airport infrastructure remains deficient. Furthermore, airports are overcrowded and unable to accommodate the growing number of tourists and flights. Tan Son Nhat Airport in Ho Chi Minh City, for example, is operating at a 33 percent capacity level.
The government, on the other hand, is committed to implementing a number of long-term and short-term solutions. It includes counter reorganization, restaurant reductions, increased waiting lounges, and airport relocation.
Talented Experts: The nation is undergoing a lack of qualified travel operators. This gap is even more noticeable in the hospitality industry, where qualified employees are needed in customer service, housekeeping, and maintenance departments. To close the gap, the government is launching a number of initiatives to provide personnel with the necessary training.
As a result, the convergence of all of these elements has created an opportunity for foreign investors to broaden their tourism business into Vietnam.
The Tourism Industry in Vietnam Faces Difficulties
- The slow adoption of digital technology: As per a Mckinsey report, online travel activity accounted for 19% of all bookings made in 2018. The pandemic has brought the term “digital” to the forefront, and the tourism industry must catch up.
- Concentrate on experiences: It is also necessary to reinvent the traditional tourism path. Travelers are increasingly seeking out unusual experiences and activities rather than simply visiting well-known tourist destinations. Platforms such as Tripadvisor enable travelers to personalize their stay and experience at a destination.
- Involvement of the Government The government should also help connect suppliers with distribution companies and intermediaries in order to create better travel packages. They should also launch campaign groups and efforts to promote Vietnam as a location for adventure.
- Tourism diversification: There is also a need to diversify tourism and attract tourists in all segments, including adventure travel, medical tourism, sports tourism, and even agrarian tourism.
Of over 19 million visitors coming Vietnam in 2019 and spending approximately USD 32.76 billion per year, the government has been debating whether to reopen Vietnam’s tourism industry following the pandemic. As a result, in lieu of the current COVID-19 situation, which is regarded under control with the majority of people fully vaccinated, the government has agreed to allow international visitors to enter the country beginning March 15, 2022.