Posted 23.05. 2019 by Cekindo / Last update on 31.12. 2020
With diverse culture and rich history, up-and-coming cities, mountainous areas, amazing beaches, and over 3,000 kilometers of coastline in a strategic location, tourism and hospitality industry in Vietnam has always been an attractive sector for investors in recent years.
With approximately 15.5 million international tourists arriving in Vietnam in 2018, Vietnam has surfaced as a rising star in the tourism and hospitality industry among ASEAN countries. Furthermore, it is forecast that 20 million international visitors will arrive in Vietnam in 2020, generating US$ 30 billion of tourism and hospitality revenue.
The exciting rise of the tourism and hospitality industry in Vietnam has also prompted the infrastructure investment to keep pace with the boom of the industry. As recorded, Vietnam is ranked the top spender of its GDP on infrastructure as compared to other Southeast Asian countries. These investments are mostly injected into the new 2,000km highways, metro systems and other new builds and expansion in the two important cities in Vietnam: Hanoi and Ho Chi Minh City.
Nevertheless, despite all the goods and potential going on for the tourism and hospitality industry in Vietnam, some challenges exist, such as underdeveloped infrastructure in certain areas and lack of professional know-how.
This article provides a deeper look into Vietnam’s tourism and hospitality industry, and why you should invest in it.
Awarded the “Asia’s Leading Destination” for the first time, the United Nations World Tourism Organisation (UNWTO) ranked Vietnam the third fastest-growing tourist destination in the world as well.
By 2020, more than 150 4-star and 5-star properties are set to be open in Vietnam and a variety of tours will be offered to global vacationers: cultural and historical tours, adventure tours, sea-based tours, luxurious vacations, and eco-tours.
Some of the hot spots in Vietnam that we can see the prospering tourism include the following:
Ho Chi Minh City (HCMC): This modern city stands out from the crowd and has the most visitors among all the cities and provinces. In 2018, the city welcomed 36.5 million visitors from all over the world: 29 million domestic visitors and 7.5 million international visitors.
Hanoi: The capital of Hanoi has done very well by attracting 28 million tourists in 2018, with 5.5 million of them being international tourists. Together with HCMC, Hanoi has recently been given the title “the top 10 most dynamic growing cities in the world”, according to the 2019 Short-Term City Momentum Index (CMI) by JLL.
Quang Ninh: Situated along the northeastern coastline, this stunning city has come up as one of the new emerging destinations in Vietnam. It attracted 12.5 million visitors in 2018 and 5.3 million of them came from countries outside of Vietnam.
Da Nang: Attracting 3 million international tourists with a total of 7.7 million tourists, the city is also included in our list of the most popular tourist destinations as well.
Other popular destinations: Hoi An (well-preserved historical trading port), Phu Quoc (Vietnam’s largest island), etc.
It’s been long that the Vietnamese government has wanted to drive the country’s economic growth through tourism. Thus, in an effort to develop the industry, the government announced several initiatives over the years including the “Strategy on Vietnam’s tourism development until 2020, vision to 2030” in 2011, as well as a policy such as the Decision 1861.
With these policies and initiatives, an amount of VND 30 trillion (US$1.32 billion) was injected into various programs at major tourist destinations for the development of tourism and transport infrastructure. On top of that, an amount of VND300 billion (US$12.9 million) fund has been approved for tourism development purposes on building plans and promotional activities under Decision 1861.
In addition to tourism funds, the Vietnamese government has also introduced a more relaxed visa policy for international visitors.
The tourism and hospitality industry is expected to grow continuously in 2021. As you can see, Vietnam is in a good position with so many great potential for investors to tap into in this industry.
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