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Vietnam case study


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Vietnam tourism scenario

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Vietnam case study

  3. 3. DESTINATION CHARACTERISTIC  With a strong history, the Socialist Republic of Vietnam is today an increasingly coveted tourist destination  Capital - Hanoi  Population – 88.78 million  Area - 331,210 km2  The official language is Vietnamese.  The literacy level is at 95.9 %  The South of Vietnam has a tropical climate, and the North is characterized by the monsoon.  In the North temperature varies from 13°C to 17°C in winter, and from 27°C to 34°C the summer.  In the South, the climate varies a little, and the temperature borders the 27°C all the year.  Coast line: 3444 km . Sources : Wikipedia
  4. 4. HISTORY  In 1960, the tourism strategic plan already existed, but the war slows down the development of the hotel infrastructure.  It was in 1986 when the ministers realised the potential of tourism industry to bring in about the much needed foreign earnings to Vietnam.  From 1975 to 1990, the strategic plans of tourist development were better elaborated.  In 1990, visitors from all over the world had expressed their renewed interest in this country.  Vietnam initiated ‘Visit Vietnam Year’ in 1990.  The tourism industry is relatively young in Vietnam. Sources : Wikipedia
  6. 6. Tourism Potential In Vietnam Nha Trang  It is Vietnam’s most popular seaside resort town located along the second most beautiful bays in the country.  Nha Trang Bay is recognised as one of 29 most beautiful bays in the world.
  7. 7. Ho Chi Minh City Cu Chi Tunnels  The Cu Chi Tunnels are an immense network of connecting underground tunnels located about 40 km northwest of Ho Chi Minh City (Saigon).  The tunnels were used by Viet Cong guerrillas as hiding spots during the Vietnam War Ho Chi Minh Museum
  8. 8. Sa Pa Terraces  Sa Pa is a town in northwest Vietnam not far from the Chinese border  At the height of 1,600m above sea level, the average temperature of the area is 15-18oC  Visitors to Sa pa will have opportunities to discover the unique customs of the local residents.
  9. 9. Ha Long Bay  Ha Long Bay features thousands of islands, each topped with thick jungle vegetation, forming a spectacular seascape of limestone pillars.  Ha long Bay is famous internationally, and is recognized as a World Heritage by UNESCO for its thousands of natural islands.  One of the new seven natural wonders of the world.
  10. 10. Temple of Literature in Hanoi    The temple was founded in the middle of 11th century The temple hosts the "Imperial Academy" Vietnam's first national university. There are many beautiful PAGODAS around city Hanoi.
  11. 11. Tourism Scenario
  12. 12. ADMINISTRATION AND MANAGEMENT  The Vietnam National Administration of Tourism (VNAT) concerns to manage the tourist activities in all the country.  Specific Objectives : To increase by 11% to 15% the average share of the tourism industry in the GDP. GENERAL OBJECTIVE o The creation of precise Vietnamese tourist products. o The exploitation of existing or potential markets, including domestic market. o The development of skills and knowledge in order to form highly qualified employees. o The development of the sector of tourism sciences and technology in order to improve the sector effectiveness in business and management. o The integration of various areas and the Vietnam position compared to the rest of the world. o The increase in national management capacities, to make an effective and suitable use of resources and an environment which can ensure a durable tourism development.
  13. 13. Laws  VNAT created a legal environment to manage the tourism activities and to prepare the conditions necessary to attract the foreign investments.  Tourism Ordinance was adopted in 1999.  The reception and the integration of the tourists are significant points which are greatly taken into consideration.  The administration simplified the procedures by authorizing the Viet Kieu to request visa to the customs during Têt
  14. 14. TOURISM POLICIES POLICIES Date of Main Objective Approval Master Plan for Tourism 1994 Development 1995-2010 By 2000: 3.5-3.8 million foreign tourists; 11 million domestic tourists; turnover US$2.6 billion. By 2010: 9 million turnover US$11.8 billion National Action Plan for To 1999 urism Development 20022005 NSTD 2001-2010 2005 tourists; 25 million domestic; Ensure tourism would be a key industry and turn Vietnam into an advanced tourist destination by 2005. 2002 Law on Tourism foreign Issue policies to ensure tourism could become a spearhead industry National Action Plan for To 2006 urism Development 20062010 Turn Vietnam into an advanced tourist destination in Asia by 2010.Foreign tourists increase about 1020% annually. Domestic tourists increase about 15-20% annually. National Action Plan for To 2007 urism Development 20072012 Achieve targets set by NSTD 2001-2010: develop tourism into a spearhead industry; receive 5.5-6 million foreign tourists and 25million domestic tourists. NSTD to 2020 (vision 2030) Affirm tourism as the spearhead industry and use total tourism receipts as the primary indicator of tourism development 2011
  15. 15. Regional Development  Tourist Vietnam is divided into three zones. 1. The north zone 2. The northern center 3. The southern centre and the south  The objectives of this point are to emphasize the tourist products of each area as well as the whole country.  Vietnam envisages making the promotion of certain tourist roads which link various strong tourist regions
  16. 16. TOURIST MARKETS  Vietnam pays detailed attention to the other countries of the Association of Southeast Asian Nations (ASEAN).  The country is also interested in other markets such as the north of Asia countries. Table of the international arrivals in Vietnam in May 2006 (By country of consignment) Market Number of visitor (in person) China South Korea United States Japan Taiwan Cambodia Australia France Thailand Singapore 264870 182055 162766 146071 115722 95375 71469 56255 51370 39690 Variation of the number of visitors compared to the year 2005 - 20,7% + 45,3% + 23,5% + 28,5% + 2,1% + 26,5% + 20,2% + 1,6% + 65,6% + 41,3%
  17. 17. Australia Cambodia Number of International Tourist Visitor 71469 95375 France 56255 5% Thailand 51370 4% 6% 8% Taiwan 115722 10% Singapore 39690 3% Japan 146071 12% China 264870 22% United States 162766 14% South Korea 182055 16% China South Korea United States Japan Taiwan Cambodia Australia France Thailand Singapore  Five years ago, the targeted markets were France and North America.  Today, the prospects changed and Vietnam more precisely aims the Chinese and Japanese customers and, in a more general way, the countries of Asia.
  18. 18. Number of International Tourist Visitor (2013 figures) Japan 450004 12% Taiwan 297584 8% Cambodia 247725 6% Australia 238647 6% France 157637 4% Thailand 195031 5% United States 328215 9% South Korea 562076 15% China South Korea United States Cambodia Australia France China 1358961 35% Japan Thailand Taiwan
  20. 20. Domestic Tourism  Domestic tourism in Vietnam represents a great part of market.  It does not have a growth rate as high as that of international tourism  In 2001, 12.1 million Vietnamese traversed the country, comparatively to 15 million in 2005, an increase of 24%.  Domestic tourism is on its top during national events such as the ‘‘Têt’’
  21. 21. NUMBER OF ARRIVALS  Half of the international tourists land in Hô Chi Minh City before visiting the other cities.  The average stay of a tourist in this city is three days International tourism, number of arrivals 8 Economic Meltdown 7 SARS outbreak 5 Millions Number of arrivals 6 4 3 2 1 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year 2005 2006 2007 2008 2009 2010 2011 2012 2013
  22. 22. INFRASTRUCTURE  In 1992, there were 13050 rooms and, according to the last 2004 census, this number reached 85381.  Small Hotels, 666 An increase of 654% in 12 years.  Number Of Lodging Places Rented Apartments, 434 In 2010, the number had reached 135 200 rooms, which made an additional increase of 158%. Tourist Villas, 53 Tourist Villages, 11 NUMBER OF ROOMS NUMBER OF ROOMS 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 6977 7752 Campsites, 8 4966 5251 3840 Hotels, 1956 Hotels 1 Star 2 Star 3 Star STAR CATEGORY HOTELS 4 Star 5 Star Small Hotels Rented Apartments Tourist Villas Tourist Villages Campsites
  23. 23. CONNECTIVITY AIRPORTS RAILWAYS  37 civil airports  International railway links  People's Republic of China  Cambodia and Laos.  High-speed rail.  3 international gateways:  Noi Bai serving Hanoi,  Da Nang serving Da Nang City  Tan Son Nhat serving Ho Chi Minh City.
  24. 24. PORTS AND HARBORS  Hai Phong  Da Nang  Cam Ranh  Nhon Traob  Phu Quoc
  25. 25. Economic Generation  The trades located at the bottom of the hierarchical scale allow to a citizen to gain 100-120 USD per month  Whereas the employees of the tourist field receive 120-140 USD per month.  In the hotels, the employees are paid a little better with a wage scale of 120-200 USD.  The sector already accounts for 4.3% of Vietnam's GDP
  26. 26. Investments  The strategy stipulates that investments must come from the State budget and sources coming from the foreign capital.  The foreign capital decreased after the 1997Asian financial crisis, but starts again to increase since 2003.  The direct foreign investments slightly increased by 4,2% in 2005 compared to 2004.  Vietnam tries to create favorable conditions to attract the direct investment abroad in order to develop the tourist offices and other higher quality products.
  27. 27. Tourist Development and planning  The National Administration of Tourism puts, as first priority, the importance to plan tourism in a rational way.  The urban development is done in harmony with the durable tourism concept.  The VNAT establishes a development plan every five years.  These plan acts as bible for the rest of the tourist institutions.  More privet sector companies are engaged in grass root level to increase overall standards of tourism at international level.
  28. 28. Human Resources TOTAL NUMBER OF EMPLOYEES IN TOURISM FIELD 1.2 % of total population 60 % Directly related to TI 30 % Never Received Education 40 % 70 %  VNAT wishes to work out and establish a development plan of human resources in tourism.  This improvement would be made by a broad outline establishment that the State and the tourist companies should fallow.  Training of foreign language such as Chinese, Japanese, English, and French etc. are being given to market associates. Indirectly related to TI University Diploma Holder
  29. 29. Promotion and marketing  The potential visitors and tourists had in mind the vision of a country which knew the war.  The adoption of the new logo and the slogan "Vietnam, the Hidden Charm" confirms a promotion based on the country cultural and historical heritage. VIETNAM ADVERTISING ON
  30. 30. VISA ON ARRIVAL  This is an alternative way to get visa for Vietnam.  A Vietnamese visa application can be applied for 1 day to 6 months in advance.  Although it takes only 2-3 working days to get your visa approved.
  31. 31. STRENGTH SWOT ANALYSIS  Use of tourism potential to there great extent.  Regional development of tourism throughout country.  Proactive government policy approach, prioritizing the tourism sector  High percentage of literacy WEAKNESS  Difficulties encountered to reach the final tourist  To enter in Vietnam, it is still necessary to have a visa which can only be obtained to the custom post and its cost is high.  Small qualified staff in marketing  In addition, the language trainings and the English master are still very weak in certain areas.  The government is still prone to arbitrary and disruptive policy decisions at microeconomic level.
  32. 32. OPPORTUNITIES  Vietnam knows an annual increase of 13% in the tourist field.  The population is conscious of the benefit tourism gives.  The possibility to offer Internet reservation and payment service constitutes an opportunity.  Government is easing visa requirements. THREATS  As coastline is near about 3500 km it is going to affect seashore tourism in case of disaster like tsunami.  Potential foreign competitors.  Government is easing visa requirements.
  33. 33. CONCLUSION  Vietnam has come a long way since, and has passed through hurdles in its history by far.  The potential of tourism is bucketful and use of available resources through planning and framing polices helping to develop the tourism industry as spearhead industry in the country.  Also some of the government policy may affect tourism in feature such visa policy, with regard to any feature terrorist activity as such.  Overall development of tourism industry is in tune with countries growth and contributing major part in GDP.  Vietnam tourism in generally and specific domestic tourism are growing fast in recent years.  Investment for tourism is increasing and gains a big turn-over.
  34. 34. References        E-tourism at a glance……. Vietnam. Journal of policy research in tourism, leisure and events. Sustainable Tourism Development in Vietnam by Nguyen Thuy Khanh Doan. Tourism & Economic Development in Vietnam -Bee Chin NG Greifswald Articles. International Edition. Volume 4 (2008). Edited by „Forum Regional- and Tourism Research World Travel and Tourism Council, Travel & Tourism Economic Impact: Vietnam, 2010 Govt. Site :
  35. 35. THANK YOU My son Mui Ne Hoi An Nha Trang Phu Quoc