Buying branded goods in Vietnam is as cheap as in America
Discussing how to "pick the pockets" of tourists, Mr. Johnathan Hanh Nguyen affirmed that all countries with developed tourism industries in the region such as Thailand, Korea, Japan, China or in the world such as the US, European countries... all use the factory outlet model (a shopping center that sells discounted goods through the season) to attract tourists, increase spending and tourism revenue.
The King of Luxury Goods points out the "key" to attracting international visitors to spend money in Vietnam
The attractive feature of outlet areas is the rich variety of goods and the huge discounts (from 50 - 90%) compared to the original price. One of the main factors is the competitive price compared to the region. However, to be able to compete, there must be support policies for international tourists, as well as domestic tourists to buy factory outlet goods in the duty-free zone.
Mr. Johnathan Hanh Nguyen Currently, the Government is considering the establishment of a policy mechanism for a duty-free zone in the trade and tourism sector. If determined to implement, Vietnam will have Factory Outlets in the first duty-free zone in the region, retail prices at these factory outlets will be as cheap as in the US or Milan, Italy. Tourists from neighboring countries will flock to Vietnam to shop, leading to a synergistic increase in other services and Vietnam's tourism industry will have a great leap forward.
"The opening of duty-free shops on the streets in the near future is a great opportunity for Vietnam to increase revenue from the tourism industry. These shops not only meet the special shopping needs of international tourists for new arrivals but also increase the number of tourists coming to Vietnam. The high-end and fashionable products sold at the shops not only attract international tourists but also create opportunities for Vietnamese manufacturers and brands to participate in the global value chain. This is also a new source of attraction for foreign investors and enhances Vietnam's competitiveness with neighboring countries and the world," Mr. Johnathan Hanh Nguyen emphasized.
Duty-free shops will share profits with tourism and aviation businesses
Looking at the world, the Chairman of the Inter-Pacific Group commented that there is fierce competition between destinations. Thailand has reduced tour prices to only 500 USD/person. This is also a country famous for its tourism approach, the close connection from policy-making agencies to travel agencies, restaurants, hotels... Thanks to that, Thailand has many similarities but the rate of attracting visitors and the level of spending of tourists is far beyond Vietnam.
Affirming that to attract international tourists to Vietnam, to make us competitive with other countries, only one airline, one travel agency, tourism, hotel cannot do it, Mr. Hanh proposed a model of cooperation between duty-free shops and businesses serving the tourism industry such as travel and aviation. Accordingly, airlines will "join hands" with travel agencies to reduce ticket prices, bringing customers to duty-free shopping centers. For each group of tourists, the duty-free shop business unit will offset 10% for the travel agency.
"Duty-free shops on the street will bring many conveniences to international tourists such as tourists having more time to shop, accessing more goods because the area on the street is much larger than at the airport. Revenue is therefore very good. We have implemented this model in Korea and Japan. At the Lotte shopping center in Seoul - Korea alone, revenue from shopping reached 10 billion USD, if 10% is divided for travel companies, they will receive financial support of up to 1 billion USD. This is a huge resource for travel companies to quickly recover. International tourists will flock to Vietnam, airlines, hotels, and restaurants will also immediately recover" - Mr. Johnathan Hanh Nguyen emphasized.
From the above analysis, the "king of luxury goods" recommends that the Government and relevant departments pay attention to promptly issuing favorable operating policies and mechanisms for investors, and promptly putting the above projects into operation to help the tourism industry make a breakthrough and be competitive enough with other countries in the region and the world.
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