The ESRT Programme assisted the Vietnam National Administration of Tourism (VNAT) in developing the Vietnam Tourism Marketing Strategy to 2020 and Action Plan 2013–2015 with the goal of guiding the development and marketing of tourism in a governed and sustainable way (Proposed).
The ESRT Programme assisted the Vietnam National Administration of Tourism (VNAT) in developing the Vietnam Tourism Marketing Strategy to 2020 and Action Plan 2013–2015 with the goal of guiding the development and marketing of tourism in a managed and sustainable manner (Proposed).
This tourism marketing strategy was based on the Government’s Strategy for Tourism Development in Vietnam to 2020, Vision 2030, and aimed at developing quality products based on the natural strengths of Vietnam’s seven tourism zones, with a focus on marine/beach tourism, cultural tourism, and nature-based tourism.
The Vietnam Tourism Marketing Strategy Had Three Goals:
- Economic – attract 10-10.5 million international visitors (7.6 percent annual increase) by 2020, and serve 48 million domestic tourists (5.3 percent annual increase). Significantly raise tourism revenue to 18-19 billion US dollars by 2020. (13.8 percent increase to 2015, 12 percent annual increase thereafter). Make a contribution 6.5-7% of GDP by 2020. Obtain $42.5 billion has been invested to increase room supply to 580,000 by 2020.
- Social – increase tourism employment to over 3 million, with 870,000 direct jobs. Ensure that tourism development contributes to the preservation and promotion of Vietnam’s cultural values, as well as to the betterment of its people’s lives.
- Environmental – Create green tourism activities that promote the value of natural resources and environmental protection, while also ensuring that tourism development complies with environmental law.
The global market
- The following characteristics characterize the international tourism market to Vietnam:
Foreign tourist arrivals increased at an annual rate of 8.9 percent on average, compared to 3.4 percent for world tourism over the same period, according to UNWTO figures.
- In 2011, ten source markets accounted for more than 75% of total international arrivals to Vietnam.
North Asia (China, South Korea, Japan, and Taiwan) accounts for 46% of Vietnam’s international arrivals.
- While China is clearly Vietnam’s largest market, its overall value is debatable (indications are that many visitors arrive by land from across the border – often from regional cities and towns, that visitors stay only a short time, and have a relatively low daily spend).
- While multi tourists from China, Cambodia, Lao PDR, and Indonesia are significant, a significant portion is likely to be number of trade movements.
- Low-cost airline carriers (LCCs) from the Philippines, Indonesia, and Malaysia are fueling tourism growth in the region.
- Arrivals from Russia are increasing rapidly, and Australia has performed admirably.
- European markets are expanding, but at a slower pace. France (211,444 arrivals in 2011) and the United Kingdom are among the top performers (156,290 arrivals). Vietnam’s next largest markets are Germany (113,938 arrivals) and the Netherlands (45,000 arrivals).
The domestic market
- Domestic tourism is the industry’s largest market segment, increasing by more than 10.2 percent over the last decade, according to an assessment of the internal tourism market.
- Even though domestic tourism peaks in the summer, it contributes significantly to lodging viability across all grades and it will keep growing as the financial system (and discretionary cash) expands.
- The market is growing among both city dwellers and rural residents.
- Increased motorcycle and automobile ownership, as well as subsidized domestic flights that keep air travel costs low, are assisting mobility.
- Domestic trip lengths have increased from 2.6 nights in 2001 to 2.84 nights in 2005 and 3.0 nights in 2010.
- Young tourists seeking adventure and revelation (known as phuot) will play an increasingly important role in the development of tourism in new locations, particularly in remote areas.
- Domestic visitors are especially drawn to Hanoi (Zone 2), Hue-Hoi An-Da Nang (Zone 4), and Ho Chi Minh City (Zone 6)
The following are key findings about Vietnam’s tourism regions:
- Regional distribution of tourism (domestic and international) is mostly limited to Hanoi (Zone 2), Hue-Hoi An-Da Nang (Zone 4) and Ho Chi Minh City (Zone 5). (Zone 6).
- Rapid increase in foreign tourist numbers to the Northern Mountainous Area (Zone 1) and Central Highlands (Zone 5) – more than three times in five years, followed by the Northern Central (Zone 3) – roughly 2.5 times in five years.
Eventually, an examination of competitors reveals the following:
- South-East Asia achieved the greatest growth in international arrivals (+10 percent), owing primarily to intraregional demand.
- Myanmar, Cambodia, Thailand, and Vietnam (+19%) had the highest growth in arrivals in the Asia-Pacific region, but Thailand had the largest increase (+3 million more tourist arrivals), followed by Singapore (+1 million).
- Vietnam competes fiercely with Thailand, Malaysia, and Cambodia in the promotion of its core tourism products (coastal and beach tourism, cultural tourism, and nature-based tourism).
- With increased government investment, competition for international outbound tourism to the Mekong region is expected to heat up.
- With more people expected to travel and do business abroad, competition for Vietnam’s current domestic tourism market will heat up.
Given the issues raised thus far, the following marketing objectives are suggested for the period 2013-2016:
- Marketing goal 1: To position Vietnam as a must-visit tourism destination in South East Asia based on its key brand values and products (culture, cities, coast, and mountains) in Asian and chosen Western markets, while also ensuring that it continues to remain the preferred holiday resort for Vietnamese residents.
- Marketing goal 2: Effectively communicate the diversity of Vietnam’s product offerings and major tourism regions; increase visitor length of stay and local spendings; and entice return tourists (‘taste more of Vietnam’).
- Marketing goal 3: Control collaboration with the private sector effectively in order to target growth segments and new markets that can be reached cost-effectively.
Progress should be reviewed and marketing objectives refined for the period 2017-2020.
The marketing objectives seek to achieve the following goals:
- By 2015, VNAT will have launched an internationally recognized Vietnam brand with consistent application of brand values throughout all VNAT marketing.
- Market expansion in target markets, as projected by the draft National Tourism Master Plan targets
- Improve industry cooperation and confidence in VNAT marketing by professionalizing activity and increasing contributions to VNAT-led marketing initiatives through the Tourism Advisory Board.