WNAM MONITORING: Việt Nam’s tourism sector welcomed over 8.8 million international visitors in the first half of 2024, marking a nearly 60 per cent increase compared to the same period last year.
This substantial growth signals a recovery from the post-COVID-19 era. Despite this progress, Việt Nam still faces significant challenges in making tourists spend more, lagging behind regional competitors like Thailand, Singapore and China.
Many tourists said that their visits to Việt Nam primarily involve sightseeing, beach outings, strolling and taking photos. Tourist destinations lack a wide variety of entertainment and recreational services. Although some places have improved by adding new facilities and services for visitors, these efforts have not been sufficient to attract repeat visits.
Despite comprising only one-fifth of domestic tourist numbers, foreign tourists spent more, contributing better to the national economy. On average, a foreign tourist spends 7 times more than a domestic tourist, resulting in 14 times higher revenue.
Michael Kokalari, chief economist at VinaCapital, highlighted in a recent report that foreign tourist spend has indirectly boosted the local economy by bringing substantial foreign exchange and promoting trade and investment.
In 2023, tourism contributed 4 percentage points to Việt Nam’s GDP growth. While foreign tourists’ spending accounted for only 10 per cent of retail sales, it significantly impacted economic growth.
VinaCapital estimates that the total contribution of tourism to Việt Nam’s economy, including both direct and indirect contributions, is over 15 per cent of GDP. Before the pandemic, about 8 per cent of Việt Nam’s GDP was accounted for by international tourism, compared to 12 per cent in Thailand. Another percentage point is expected to be added to national GDP growth by the ongoing recovery in 2024.
Trần Phương Linh, Marketing and IT director of BenThanh Tourist, saw exceptional growth in the international tourism market for their business since the beginning of the year. The company’s foreign tourist numbers and revenue increased by over 50 per cent compared to the same period in 2023. Both traditional and new markets have shown promising growth.
Markets such as India, Chinese Taipei, and Europe have all seen significant growth, with foreign tourists in Hồ Chí Minh City particularly interested in cultural and historical tours, local cuisine and the local coffee culture.
