Vietnam News Today (May 31): Vietnam Hits Peak Time for Domestic Tourism

Crowds flock to Co To island in Quang Ninh province (Photo: VNA)

Vietnam hits peak time for domestic tourism

The tourism sector served 12.5 million domestic visitors in May, pushing the total number of the group to over 50.5 million in the first five months.

Also in May, revenue from domestic travelers is estimated to hit 267.2 trillion VND (11.37 billion USD). The volume of Vietnamese holidaymakers traveling around the country has been on the rise in conjunction with the annual peak of domestic tourism.

On the opposite end, the peak time in domestic tourism is also when international tourism hits its low-season travel period. The sector hosted 1.3 million tourists from the Republic of Korea and 399,000 from China in the period from January to May.

This year, Vietnam set a target to earn some 650 trillion VND from 110 million visitors, including 8 million foreigners, cited VNA.

According to the Vietnam National Administration of Tourism (VNAT), the 4.6 million international arrivals recorded between January and May fulfill 57% of the yearly target. This coupled with a growth in the peak season of international tourism at the end of the year and policies to facilitate tourism in the near future means a possibility for the 2023 number to meet and even surpass the 8 million goal.

60% of Japanese retailers to expand operations in the Vietnamese market

A survey recently conducted by the Japan External Trade Organisation (JETRO) highlights that 100% of Japanese retailers operating in Vietnam expect their profits to increase over the course of the year, whilst 60% plan to expand their businesses over the coming one or two years.

According to the survey, Japanese investors are working on plans to perfect the supply chain and optimize business potential, as many are investing in both production and distribution channels. This is why a series of Japanese retail and consumer brands are continuing to pursue growth targets in Vietnam amid market difficulty concerning purchasing power.

Japanese dairy giant Morinaga Milk Industry is a case in point. After acquiring a Vietnamese company through a merger and acquisition deal last year, the firm has increased its investment in the joint venture, hoping to raise its revenue in the country to JPY10 billion, equivalent to about US$71 million, per year.

Japan's Aeon Mall plans to expand its supermarket and shopping mall network in Vietnam. (Photo: cafef.vn)

JETRO reported that Vietnam is a special market for Japan, not only because of its prospects as a retail market but also as a place where many manufacturing partners supply “Made in Vietnam” products. Optimizing business through both manufacturing and retailing in the country is the main choice of many Japanese investors such as AEON or Uniqlo.

Nobuyuki Matsumoto, chief representative of the JETRO Office in Ho Chi Minh City, says Japanese investment flows into the country have in recent times begun to shift from manufacturing to retail and services for domestic consumption and export, in order to take advantage of opportunities from the free trade agreements that Vietnam has joined.

Analysts believe that distribution represents an important factor for Japanese financiers when increasing their presence in the market. Japanese firms are aware that although their products find it difficult to compete on price in the short term, they place their expectations on businesses with strong and wide distribution systems in an attempt to get the lion’s share of the market, according to VOV.

The fact that FDI businesses have announced plans to increase capital and expand distribution networks, in addition to the positive market outlook, also comes from the effectiveness of free trade agreements. However, this advantage may not last long as other domestic and foreign retailers adjust their operations. Currently, the expansion of the Vietnamese market is said to give Japanese retailers the first-mover advantage in the local market.

Vietnam is among the top three attractive destinations for RoK visitors

Vietnam is among the top three most favorite tourist destinations for Korean visitors in Asia, according to statistics from KB Kookmin Card of the Republic of Korea (RoK).

Korean tourists have spent money on travel abroad as soon as COVID-19 prevention measures are lifted, cited VNA.

Vietnam is among the top three attractive destinations for RoK visitors. Illustrative image (Photo: VNA)

Data from KB Kookmin Card from January 1 – May 15 showed that in Asia, Taiwan (China), Vietnam, Japan, and Thailand are particularly popular destinations for Korean tourists with growth rates of 319%, 227%, 193%, and 172%, respectively.

Korean tourists have spent money on travel abroad as soon as COVID-19 prevention measures are lifted.

Data from KB Kookmin Card on January 1 – May 15 showed that in Asia, Taiwan (China), Vietnam, Japan, and Thailand are particularly popular destinations for Korean tourists with growth rates of 319%, 227%, 193%, and 172%, respectively.

Diverse activities planned to promote Vietnam - India ties

The Consulate General of India in Ho Chi Minh City plans to organize a range of cultural exchange, tourism, trade, and investment promotion events this year, following similar events held last year marking 50 years of bilateral diplomacy between Vietnam and India.

This information was released by Dr. Madan Mohan Sethi, consul general of India in Ho Chi Minh City, during a press conference held on May 30.

The Indian diplomat revealed that the Consulate General has organized 20 trade exchanges with the participation of more than 600 Indian enterprises who are keen to seek further investment opportunities in Vietnam’s southern provinces.

Moreover, various Indian associations and businesses have participated in a range of exhibitions on garment and textile, furniture, food, and seafood in Ho Chi Minh City to seek business opportunities and new partners for mutual development.

He pointed out that aside from the opportunities to expand trading ties, there is plenty of room for both sides to collaborate in the spheres of culture, education, health care, and tourism.

Last year saw an estimated 140,000 Indian tourists visit Vietnam, while 34,000 Vietnamese tourists travelled to India, VOV reported.

Dr. Madan Mohan Sethi, consul general of India in Ho Chi Minh City, addresses the press briefing on May 30. (Photo: VNA)

The Consulate General has also been working with the provinces of Khanh Hoa, Lam Dong, and Ninh Thuan to promote tourism with Indian localities moving forward.

In addition, India will coordinate efforts with the Vietnam Yoga Federation to organize International Yoga Day across 22 provinces and cities in the country.

Especially, the Consulate General will also host a seminar on cardiovascular with the participation of leading Indian doctors in the near future to strengthen healthcare connectivity between the two countries.

Vietnamese Airlines to launch more international air routes

Vietnamese airlines have announced plans to open more international air routes this summer.

Budget airline VietJet Air will open a daily air route from HCM City to Jakarta, Indonesia, from August 5. The carrier will also launch flights linking HCM City and Kochi (India) from August 12 and their Phu Quoc-Hong Kong (China), Danang-Hong Kong and Danang-Daegu (South Korea) and Nha Trang-Seoul (South Korea) flights this summer.

Meanwhile, Vietnam Airlines will resume flights on the Hanoi-Luang Prabang (Laos)-Siem Reap (Cambodia) with a frequency of three flights per week. From October 30, the frequency on this route would be raised to five per week, reported Dtinews.

International passengers at Noi Bai International Airport. Photo: VNN

Vietnam Airlines is also working with authorities and partners in countries in Northeast Asia to soon conduct flights to Taiwan (China), China, South Korea, and Japan.

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