Weightier Advantages on Tech-powered Players

11:33:26 AM | 3/28/2019

Vietnam's economy is on the right track for a robust growth, and tourism is defined as a key economic sector. In this industry, do private or State-owned enterprises hold the advantage?

Mr. Tran Trong Kien - Member of the Private Economic Development Research Board, said, in the last 10 years, Vietnam's tourism industry has made impressive growth. Especially in the last three years, the number of tourist arrivals has doubled.

In 2008, the number of international tourist arrivals to Vietnam was 4,253,740 and tourism revenue totaled over VND60 trillion. In 2018, Vietnam welcomed 15,497,791 foreign tourists and made tourism revenue of VND620 billion (US$27 billion), representing a 3.6-time growth in arrivals and a 10-fold increase in revenue over 2008. Especially, tourism tends to go online.

According to research by Google & Temasek, Vietnam's online tourism market may reach US$9 billion by 2025, or quadrupling the value in just 10 years. In 2018 alone, the online tourism expands by 19% annually, higher than 12 -13% in previous years.

According to a survey by Q&Me, a market research service in Vietnam, up to 88% of tourists study online travel information before deciding and scheduling their journeys.

Meanwhile, the latest survey on global travel trends in 2018 conducted by Visa shows that more and more Vietnamese tourists tend to travel abroad and up to over 90% of respondents said they use online channels to find out information and plan their trips. According to another survey on international tourists, up to 71% look for destination information on the internet and 64% make reservations and buy services online during their trip to Vietnam.

Currently, Vietnam has more than 30,000 tourism businesses and all of them know how to apply technology to their activities. However, their technological investment is still limited to meet needs of customers, particularly international tourists. The boom of the Fourth Industrial Revolution offers more choices to tourists.

In this game, some foreign giants are at the forefront of technology and holding relatively big market shares. Nevertheless, as operating on the home market, Vietnamese travel businesses have also received and applied technology effectively. In particular, private enterprises are more flexible and quicker than State-owned enterprises (SOEs).

With young human resources and good technologic prowess, private companies can easily apply technology to business operations and utilize technology better than SOEs.

Mr. Nguyen Tien Sy, Chief Communications Officer at Jetstar Pacific, said, “Driven by strong information technology development trends, a company has many different ways to reach customers. In addition to traditional tools such as TVC, publications and leaflets, communicators via Facebook, Instagram, YouTube and Zalo are increasing in number and becoming popular. These online channels promote and sell products and services effectively, helping increase accessibility to customers at a lower cost than traditional advertising.
Furthermore, many restaurants, hotels, amusement and entertainment destinations not only promote their images in mass media but also actively use online travel channels by getting connected with Traveloka, Agoda, Booking or Expedia to have easier access to more tourists around the world.

Moreover, private companies often have stricter regulations and higher quality standards than SOEs. Therefore, they are more accessible and favored by customers.

Indeed, they are increasingly asserting their positions and brand names in the market. Young labor force, quick capture and application of modern technology are advantages for private businesses to develop further in the future.

Giang Tu