Vietnam’s Tourism in 2001-2010 to See Unstable Growth

In 2001, Vietnam received 2.33 million foreign tourists, in 2008 received 4,235,000, or an increase of 8.91 % a year. Impressive growth has been recorded in almost all markets especially Russia, Malaysia, Thailand, Singapore with over 30 % in 2004-2008. Local tourists also increased to 20.5 million in 2008 or 8.34 % a year. It is truly an impressive growth showing the increasing demand and supply of Vietnam tourism. It is even more important in the context of world economic crisis and epidemic diseases affecting seriously tourism industry.

 

By 2008, Vietnam has 4,856 accommodation units with 123.050 bedrooms, including 296 hotels of 3-5 stars and hotel growth rate of 15-16 % a year.

 

The number of local and international travel agencies continues to increase to expand the markets and attract more tourists, According to the statistics, by June 2009, Vietnam has 764 international travel agencies, over 10,000 local travel agencies, 6,000 international tourist guides. According to 2001-2010 plan, the target of tourist turnover in 2005 is US$2 billion and 2010 US$4-4.5 million. In fact, it is US$2.3 billion in 2005 and over US$4 billion in 2008, and average growth rate of 15.6 % a year. The total tourism turnover in 2000-2008 increased 16.7 % a year, higher than the growth rate of tourists.

 

In addition, planning and environment protection have been developed with new tourist products such as adventure tourism, craft villages, caravan tours, Hanoi and Hue international festivals, international tourist exhibition in Ho Chi Minh city, together with sea resorts and eco-tourism of international standard along the coastline of Central Vietnam.

 

Tourism promotion has been accelerated with national and international events such as SEA Games 22, APEC Summit, ASEAN Tourism Forum, ITB (Germany), JATA (Japan), TOP RESA (France) and WTM (UK), CITM (China), Travel Mart (Thailand). TUR (Sweden). It has also been developed with Internet, television networks, information centres, publications to introduce the image of Vietnam, a friendly and attractive destination to foreign tourists.

 

Currently, Vietnam tourist sector has a workforce of 1,035,000 people (285,000 direct and 750,000 indirect workers), 42.5 % trained and 30.8 % speaking foreign languages (English, Chinese, French and others). Human resources development for tourist sector has been boosted with tourism faculties in 40 universities, 43 secondary schools and many training centres nation wide.

 

Regarding tourism development in 2001-2008, the State has invested VND4,136 billion for infrastructure in 57 provinces and cities. By July 2008, FDI in tourist sector was US$4,466 million with 250 projects (15 % in capital and 3.96 % in projects). In 2001-2008, nearly 200 foreign investment projects of different sizes have helped increase the quantity and quality of Vietnam tourism.

With the above-mentioned figures, Vietnam tourism has achieved the objectives set for 2001-2010 and contributed to the economic development, regional and international integration. However, according to Assistant Professor, Dr. Pham Trung Luong, Deputy Head of Institute of Tourism Development, the objectives have not been really attained, the causes must be determined and solutions must be found for the next stage of development.

 

An important target of the tourism development strategy in 2001-2010 is to attract 5.5-6 million foreign tourists and 25-26 million local tourists, but many experts at the seminar believe that the target cannot be achieved due to world economic recession and epidemic diseases. In spite of great efforts to attract tourists from up-markets, the market expansion is still limited and dependent on foreign travel agencies. Vietnam tourism remains without tourist products of international standard or national famous brand. Tourist products and services are poor and less competitive. Tourist promotion is less effective with poor expertise, limited financial and human resources. Public awareness of tourism is insufficient, inconsistent and without strategic vision. Those are the main problems that cause fighting for tourists and squeezing them, damaging tourist environment in many localities and tourist sites nation wide.

 

Furthermore, there is serious shortage of skilled workforce in key sectors, especially foreign languages such as Japanese, Korean, Spanish. Related legal documents are still lacking and slow in enforcement. State management on tourism has been changed repeatedly causing inconsistency and interruption. As a result, Vietnam tourism ranks fifth among ASEAN countries failing to attain the objective of developed tourism in the region by 2010.

 

Ms Hoang Thi Diep, Deputy Director General of Vietnam Administration of Tourism, said that Vietnam must overcome all weaknesses to ensure tourism as a spearheaded economic sector and sustainable development. The review of 2001-2010 development strategy is necessary for the development of 2011-2020 strategy and vision of 2030, Ms Diep pointed out.