Vietnam Seeks to Surge in Race for Chinese Tourists

A recent high-level delegation from the China Tourism Group (CTG) and China Duty Free Group (CDF) surveyed locations in Vietnam, signing a cooperation agreement with the Pan Pacific Group (IPPG).

The aim is to establish three duty-free stores, positioning Vietnam to welcome an influx of Chinese tourists. This move comes as China reopens its borders following years of pandemic-related restrictions.

Mr. Johnathan Hanh Nguyen, Chairman of IPPG, believes this venture creates ample opportunities for boosting bilateral trade and tourism between China and Vietnam.

China Duty Free, the largest duty-free business group in China, could be instrumental in Vietnam's goal of attracting an additional 25 million Chinese tourists per year.

The initial duty-free store is scheduled to open in Mong Cai (Quang Ninh) in 2024, with the expectation of drawing millions of additional Chinese tourists eager for shopping experiences.

Regional Competition

Mr. Nguyen Trung Khanh, Director of the Vietnam National Administration of Tourism, states that Vietnam aims to welcome 17-18 million international visitors for the year. Prioritizing high-spending clientele, China remains a crucial source market, accounting for 30% of Vietnam's international tourists before Covid-19.

Operations Director Dang Manh Phuoc of The Outbox, a tourism research company, believes this goal is feasible, given China's renewed outbound tourism.

However, he reminded that Southeast Asian rivals like Thailand, Singapore, and Malaysia are also aggressively courting Chinese tourists. Thailand, for instance, has temporarily waived visa requirements for Chinese visitors and welcoming as many as 11 million in 2024 out of the estimated total number of visitors of between 36-38 million this year.

Global Trends in Chinese Tourism

International research suggests Chinese outbound tourism could reach 80% of pre-pandemic levels by the end of 2024, fully recovering by late 2025. However, interest in European destinations remains lower compared to regional travel within Asia. Interestingly, the UAE is emerging as a popular choice alongside traditional favorites like Thailand and Malaysia.

Vietnam's Current Standing

Early 2024 data shows South Korea as Vietnam's top tourism market, followed closely by China. Notably, Vietnam is a favored destination for Chinese travelers, but experts like Vo Viet Hoa, Director of Saigontourist's International Tourism Department and Nguyen Tien Dat, CEO of AZA Travel, caution that Vietnam needs to enhance its appeal.

They suggest visa waivers for key markets, noting Thailand's successful implementation.

China's upcoming Labor Day holiday in May is expected to further ignite outbound travel, marking the start of the peak summer season. Vietnam has an opportunity to make significant strides, but staying competitive requires a proactive and strategic approach.