Vietnam Tourism and Hotel Issues

Running Head: TOURISM AND HOTEL 0
Contemporary Tourism and
Hotel Issues
Destination: Vietnam
Student Name:
Student University:

TOURISM AND HOTEL 1
Introduction
In recent times, the Vietnam is the most nominated destination in terms of tourism and
accommodation across the globe. Vietnam is a one-party Communist state and one of the
fastest growing economies in south-east Asia along with setting sights to become a
developing nation. The language used there is Vietnamese and the currency used is ‘dong’
following the religion of Buddhism majorly with the population of 92 million (BBC, 2019).
In Vietnam, there is vast development of tourism and accommodation facilities where
numerous hotels concentrated in Hanoi being a national capital, and Ho Chi Minh City. There
were economic crisis in past that hit the major ASEAN countries affecting international
tourists from the primary market sources to Vietnam. The management and investment in
accommodations is done at large over Vietnam by SOEs (State Owned Enterprises) owning
provincial or central government such as Vietnam Tourist Company and Saigon Tourist
Company consisting joint-venture companies as well (Vivu Travel, 2017). Vietnam providing
tourism facilities with hospitality services consisting transportation, cultural and recreational,
and agencies facilities. Moreover, tourism development projects and plans were made for
tourists such as VNAT (Vietnam National Administration of Tourism) investing in resorts as
one of the biggest development plans. Vietnam won World Travel Awards in 2018 as Asia’s
Leading Destination (Das, 2019). In this report, the discussion is based on critically
examining the contemporary tourism and accommodation issues of Vietnam. Also,
identification of tourism market potential and accommodation development is done along
with the impact of transport development. There can be crisis and risk that needs to be
managed with the impact of social media and visitor experience development identification as
required to be mentioned in this report.
Contemporary tourism and accommodation issues
In the industry of accommodation and tourism that always undergo and evolve with radical
changes. There is development of skills and knowledge rapidly advancing based on past
practices acquired to create and adapt innovation in different ways across the globe
(Ambrozik, 2016). The issues faced by such as the facility functioning and the staff with
applicability of marketing processes. One more issues is the development of tourist
infrastructure along with brands occurrence, tourism and globalization that requires the
authenticity protection of events and places. Furthermore, the values and trends in tourist

TOURISM AND HOTEL 2
related issues along with attractions of destinations such as Vietnam for tourists’ attraction. In
tourism issues covers tourism in national parks, intensity of tourist flows impact on natural
beauty and protected areas. The issue of social media focuses on way of gaining the interest
in implementation of marketing strategies and provided services (Bauer, 2014). Hence, the
concern is mainly with oncoming changes and development in tourist industry not only in
Vietnam but across the globe. In Vietnam, the major problem in tourism and hotel faced is
poor public infrastructure going with a steady growth (Chen, 2014). Vietnamese put their
efforts in motivating the development of service industry and contributed in position
improvisation for better outcomes of tourism internationally. Vietnam’s widening flight
routes, policy changes and improved infrastructure can help the country with increase
demand for boosting development of tourism property. Another issue is few shopping centers
in Vietnam and others on small scale occupied that are Vincom Mega Mall, AEON Mall Binh
Tan and AEON Mall Long Bien.
Tourism market potential
In Vietnam, travel agencies, transport businesses and accommodation units has been raised
with a positive impact and feedback by tourists but the country is still trying to make the
tourism of Vietnam better concerning its image and country to lead in economic sector. One
factor important in contributing to tourism growth is trending of technology for making easy
to tourists sharing their travelling experiences and accessibility to information related to
travel such as air ticket prices and accommodations (Nhung, 2017). VNAT framed the market
segmentation by looking towards the potential market that are mainly Indian and Middle
East. Vietnam considers the factors under geographic market segmentation dividing it in rural
and urban as per different attitude or responses towards the country. Also, Vietnam works
with inbound tourism emphasizing the most among more employment opportunities creation
for local individuals and attracting foreign investment. However, there are changes impacting
in tourism of Vietnam that is its infrastructure, social behaviour, increased petrol or gas price,
and internet and e-commerce development rapidly (Neubacher, 2015). Vietnamese
government encouraged travel companies to follow new trend and expand business in the
Western markets. Vietnam aims at high-and-above-income market for serving to mid and
high income tourists with highest standard.

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Transport development
Vietnam faces the challenges of branding that shifts to vague or perceptions as a tourism
destination of the country with a more positive reality for seeing future tourism markets being
very strong with the ability to deliver the country’s development. In Vietnam, the travel
industry remains fragile resulting promotional activities and visa waiver policies legislated by
the government along with doubling of tourism revenue and numerous tourists as expansion
of infrastructure such as government personnel, airport, increase of service for support visitor
and highways. Vietnamese focuses on upscale visitors mainly such as families, business
travellers and cultural tourists staying for long to continuously grow the tourism market by
outspending in marketing and advertising (Viet, et al., 2019). Thus, it is essential to attract
tourists in Vietnam and upgrade its infrastructure which is the only major issue in the
country’s tourism and accommodation industry.
The country works on project in transport strongly where the government of Vietnam tries to
draw investment from the private sector of foreign for attracting specialises technical
knowledge along with equity through these projects. Vietnam has the potential of growing
transport infrastructure sector for the movement of freight and passenger along with best
practices to increase the infrastructure in the country (Andiva, 2019). In future, the country
thought of sustainable transport with expansion process and international economic
integration where the demand of transport is high where Vietnam faces the shortcomings.
These issues consisted of not meeting the society’s needs by public passenger, traffic
congestion, transport growth rate increased to environmental pollution, lacking with strategic
vision and sustainability being development-oriented covering the urban development
planning as a whole leading to the urban networks development without any uniformity
where the development of transport project is also lacking harmonious nature green goals
consisting environmentally and clean friendly (MOT, 2012). In Vietnam, mainly urban
transport is considered for forming clearer-functional distinction based on provincial,
national, district and regional levels with a rapid development in system.
The investment and operations in infrastructure for transport development suggests public
transport means in plenty, improving the services quality while using modern facilities to
meet the urban population travelling needs. The new construction has been done in transport
infrastructure for development under herringbone and uni-directional radial structure majorly
consisting urban centers and national highway as well. Though, this development in transport