2023 in Review: Vietnamese tourism’s strong recovery and forecast lessons

After ten months of 2023, Vietnam’s tourism sector changed its target for welcoming international visitors in 2023 from 8 million to 12.5-13 million (1.5 times higher than the original target), showing the result of efforts for vigorous recovery.
Illustrative image (Photo: DUY HAU)
Illustrative image (Photo: DUY HAU)

In 2023, Vietnam has continued to win many awards from the World Tourism Organisation, including the World's Leading Heritage Destination title for the fourth time and the World's Leading Heritage Destination for the fifth time. However, Vietnam’s tourism sector also learned a profound lesson about forecasting.

Efforts for strong recovery

In 2023, the Prime Minister chaired two national conferences on tourism development in a year (on March 15 and November 15) for the first time. The two confirmed the results, pointed out limitations, difficulties, problems and causes, outlined the main challenges of Vietnamese tourism and proposed many practical solutions to restore and develop Vietnamese tourism.

In May 2023, the Government issued Resolution No. 82/NQ-CP on accelerating the recovery and effective and sustainable development of Vietnamese tourism. On August 14, 2023, the Government issued two Resolutions (No. 127 and 128/NQ-CP) on implementing electronic visa (e-visa) issuance and increasing the temporary residence period to 45 days for citizens of 13 countries unilaterally exempted from visas by Vietnam.

Since the beginning of the year, the localities have also actively carried out many tourism promotion programmes and cultural and sports activities to stimulate tourism demand. At the same time, new products have been introduced to attract international tourists during the year-end peak season. Notably, Hanoi launched 15 night tourism products for the first time to promote the advantages of night services and develop diverse, unique and sustainable night products with high added value.

As a result, the total number of international visitors to Vietnam reached over 11.2 million in the first 11 months (3.8 times higher than the same period in 2022), and the number of domestic visitors reached 103.2 million. The total revenue from tourists was estimated at 628.3 trillion VND. In November 2023, the European market recorded the best growth among the continents (up 58.5% compared to October 2023).

Because the initial goal set for 2023 (welcoming 8 million international tourists) was achieved after only nine months, Vietnam’s tourism sector has changed the target of international tourists for 2023 from 8 million to 12.5-13 million (1.5 times higher than the original target). Major holidays in December promise to create breakthroughs for Vietnamese tourism to achieve new goals.

The total number of international visitors to Vietnam reached over 11.2 million in the first 11 months (3.8 times higher than the same period in 2022), and the number of domestic visitors reached 103.2 million. The total revenue from tourists was estimated at 628.3 trillion VND. In November 2023, the European market recorded the best growth among the continents (up 58.5% compared to October 2023).

Vietnamese tourism’s image has continued to be highly valued internationally. Vietnam won many awards from the World Tourism Organisation in 2023, including the World's Leading Heritage Destination title for the fourth time and the World's Leading Heritage Destination for the fifth time. In addition to the World's Leading Heritage Destination title, Vietnam has local destinations honoured with several awards.

Specifically, Hanoi was named the World's Leading City Break Destination 2023; Phu Quoc Pearl Island (in Kien Giang Province) won the title of World’s Leading Nature Island Destination; Moc Chau District (in Son La Province) was honoured as the World's Leading Regional Nature Destination; Ha Nam Province won the World's Leading Regional Cultural Destination 2023 award; and Tam Dao received the title of World's Best Town Destination 2023.

According to Travel Lemming, an online travel guide website, Phu Quoc Pearl Island ranked sixth among the top 50 tourist destinations in 2024. The US-based travel website Travel Off Path issued an article stating why Vietnam has been increasingly becoming a favourite destination for "digital nomads" with its liberal visa policy.

Effectiveness of forecasting lessons

However, it is necessary to frankly acknowledge the limitations, difficulties and challenges of the tourism sector. The development is still not commensurate with the potential, advantages, and opportunities of nature, people, and cultural traditions and history. There are not many attractive tourism products, and the quality of tourism products is still limited. The sector has mainly provided available products and services without focusing on meeting the products and services that tourists need.

The planning of strategies for markets and partners is still limited and has not been promptly adjusted following the fluctuations in the world and regional tourism situation. Tourism management is not strict, synchronous, and effective. In addition, there are still many issues regarding publicity, transparency, security, safety, hygiene and the environment.

Many experts in tourism and travel believe it is essential to set "outstanding" numbers for the target of welcoming international visitors in 2024 because the target in 2023 was adjusted from 8 million to 12-13 million visitors. Therefore, in 2024, the tourism sector needs to set much higher numbers, such as 17-18 million visitors.

It is essential to set "outstanding" numbers for the target of welcoming international visitors in 2024 because the target in 2023 was adjusted from 8 million to 12-13 million visitors. Therefore, in 2024, the tourism sector needs to set much higher numbers, such as 17-18 million visitors.

Setting new high goals can bring breakthrough opportunities, accompanied by policy development and motivation, to promote the development of the tourism industry. It is known that the goal of Vietnam's tourism industry, set for the 2022-2026 period, is that the number of international tourists coming to Vietnam will reach 18 million by 2026 (an increase of 20% compared to 2025). However, if the sector sees opportunities and possibilities, it is crucial to speed up to compensate for the time when Vietnamese tourism was seriously affected by the pandemic.

Of course, the calculation for the target of welcoming international tourists must be based on many factors. Just one variable factor can cause the forecast results to be inconsistent. Right from the beginning of 2023, Thailand increased the target of welcoming international visitors from 10 million to 30 million when they realised favourable conditions. Therefore, the fact that Vietnam did not adjust the target of international visitors for 2023 until October is a bit slow, and the forecasting has not been close. The lesson is to strengthen market research, grasp new tourism trends and respond quickly and appropriately.

In the new development period, to continue improving the quality of tourism development, the 13th National Party Congress’s Resolution determined that international tourists to Vietnam will reach 47-50 million by 2030, contributing about 14-15% of GDP and raising the proportion of the service sector in GDP to over 50%. This is a high target, so it requires high determination, great efforts, and drastic, effective and synchronous action with key focuses as well as proactive, creative, timely and flexible responses towards clearly defining the responsibilities of the subjects.

The context of deep globalisation and international integration, especially the fourth industrial revolution, has posed many challenges to Vietnamese tourism, requiring innovative thinking, new approaches and new measures to develop tourism.

Vietnam's tourism development must be placed in the overall tourism development of the world and the region and be flexible, adaptable, innovative, creative, and closely linked to the digital transformation process. It is necessary to focus on professionalism and modernity, diversity and uniqueness.

The development orientation of Vietnamese tourism has been determined in the Government’s Resolution No.82: "Special products - Professional services - Convenient and simple procedures - Competitive prices – Clean and beautiful environment - Safe, civilized and friendly destinations”. In the near future, the agencies at all levels, professional associations and businesses in the tourism sector need to implement the Politburo’s Resolution No.08 and the Government’s Resolution No.82, with the motto of “close connection, smooth coordination, and comprehensive cooperation”, so that Vietnam’s tourism sector can recover and develop strongly.