Tourists take souvenir photos with the dragon model on Nguyen Hue Street, District 1, Ho Chi Minh City - Photo: TTD
The success of welcoming 12.6 million international visitors in 2023 lays a solid foundation for Vietnam's ambitious goal of welcoming 18 million international visitors by 2024. Confidence in this figure is increasingly reinforced with the figures for the first quarter of 2024.
One way for Vietnam to overcome its growth limits is through the public-private partnership (PPP) model.
The goal of public-private partnership projects at many Southeast Asian airports is to provide seamless connectivity and improved convenience for travelers. And this is also the path that Vietnam continues to exploit to lead the tourism industry this year.
Further private sector involvement in Vietnam’s tourism industry will be promoted, especially effectively if focusing on three key pillars: visa policies and cross-border cooperation to facilitate seamless travel experiences, developing digital amenities to ensure end-to-end connectivity for visitors, and finally upgrading infrastructure.
Other notable activities include Vietnam actively signing bilateral agreements with other countries to promote tourism cooperation, expanding air connectivity by establishing new routes, and increasing the number of direct flights to emerging destinations.
Foreign tourists enjoy milling rice and corn on the doorstep of a Mong house - Photo: NGUYEN HIEN
The story of Da Nang with nearly 2 million international visitors in 2023, a 4.2-fold increase compared to 2022, is attracting attention. Few people know that this is the result of expanding air connectivity between localities.
Along with the increase in physical connectivity, digital solutions also need to improve. More than 70% of travelers now choose to organize their own trips through online travel platforms.
By partnering with companies that develop digital tools, Vietnam gains insights into travelers' preferences and trends to better serve them.
PPPs in Vietnam have contributed significantly to improving infrastructure - an important factor for the tourism experience. Besides traditional capital sources, private investment plays an important role in developing transport, urban and energy infrastructure.
Good news came at the end of 2023 when the Government issued a pilot resolution to increase the level of state capital participating in PPP projects to 70% in certain areas, compared to the initial level of 50%. This is a positive step, creating favorable conditions for private investors to participate more strongly in PPP projects.
However, the number of new PPP projects is still limited, mainly focusing on the transportation sector, besides there are challenges in project preparation, risk allocation and legal framework. To maintain the momentum, tourism businesses can contribute their expertise and participate in high-demand PPP projects.
Vietnam’s tourism industry is poised to make a breakthrough this year, supported by a combination of new policies and technology-enabled initiatives. And by opening up opportunities for private sector participation, Vietnam’s tourism industry can improve its competitiveness and achieve sustainable growth.
Mr. Caesar Indra (Chairman of Traveloka)
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