Vietnam welcomed over 1 million international visitors in July 2023.

July is the first month that the tourism industry welcomed over one million international visitors since its reopening in March of last year. In the first 7 months of the year, the total number of international visitors reached nearly 6.6 million, which is 83% of the annual plan for 2023…

Photo: Saigontourist Travel

On the afternoon of July 28th, the Vietnam National Administration of Tourism released statistics on international tourists visiting Vietnam in July and for the first 7 months of 2023. Specifically, in July 2023, the entire country welcomed over 1.038 million international visitors, an increase of 6.5% compared to June. This also marks the first month of this year when the tourism industry received over 1 million international visitors. Thus, over the first 7 months of this year, the total number of international visitors to Vietnam reached nearly 6.6 million, equivalent to 83% of the plan for 2023.

Regarding domestic tourists, in July 2023, there were 12.5 million visitors, including 8.3 million staying overnight. As a result, the total number of domestic visitors in the first 7 months of the year reached 76.5 million. The total revenue from tourism over the first 7 months of 2023 is estimated to reach 416.6 trillion VND.

GROWTH IN THE INBOUND MARKET

In terms of market scale, South Korea continues to be the largest source market over the past 7 months, with nearly 1.9 million visitors (accounting for nearly 1/3 of the total international arrivals to Vietnam). China ranks second, with 738,000 visitors; the United States is third with 445,000 visitors.

Among the top 10 source markets for tourism in Vietnam, Northeast Asia leads with 4 markets: South Korea, China, Taiwan (415,000 visitors), and Japan (284,000 visitors). Southeast Asian countries contribute 3 major markets, including Thailand (290,000 visitors), Malaysia (262,000 visitors), and Cambodia (225,000 visitors). Australia ranks 9th (221,000 visitors) and India ranks 10th (213,000 visitors).

Chart of International Tourist Arrivals by Month, 2023 (in thousands).
Source: General Statistics Office.

For the European markets, the largest source markets over the past 7 months have been, respectively: the United Kingdom (147,500 visitors), France (120,800 visitors), and Germany (111,800 visitors). The Russian market accounted for 69,900 visitors. Notably, in the month of July, visitors from Vietnam’s leading European source markets all increased compared to June.

Regarding the growth momentum in July, the Vietnam National Administration of Tourism assessed that Europe exhibited the strongest growth among continents, with a 27% increase compared to the previous month. This growth was contributed to by key markets such as the United Kingdom (up 14.5%), France (up 35.9%), and Germany (up 27.3%). Additionally, there were significant increases from Norway (up 250.8%), Belgium (up 154%), Denmark (up 152%), the Netherlands (up 44.6%), and Spain (up 52.9%).

In July, Vietnam’s leading tourism markets also experienced growth compared to the previous month, with South Korea increasing by 6%, China (up 14%), the United States (up 7%), Taiwan (up 31.3%), Japan (up 15%), and Australia (up 34.3%). However, some neighboring Southeast Asian markets reported a decrease in visitor numbers, including Thailand (down 19.1%), Malaysia (down 24.5%), and Cambodia (down 9.8%).

Chart of Top 10 Source Markets for the First 7 Months of 2023 (in thousands).
Source: Compiled from data by the General Statistics Office.

In regards to the assessment of the international tourist arrival target for the year 2023, Nguyen Trung Khanh, the Director General of the Vietnam National Administration of Tourism, shared that as of July, Vietnam’s tourism industry has achieved 83% of the annual plan for international tourist arrivals. “There’s a high possibility that the tourism sector will soon meet its target and there’s still a lot of potential for further growth as we enter the peak international tourism season at the end of the year,” Mr. Khanh stated.

SIGNIFICANT FIGURES REPORTED BY MANY LOCALITIES

The recovery and robust growth of the tourism industry have contributed to promoting economic and social growth for numerous localities. In Ho Chi Minh City, over the past 7 months, international tourist arrivals reached more than 2.3 million, a 208.3% increase compared to the same period in 2022, and 47.2% of the target.

Not only with international tourists, in July 2023, domestic tourist arrivals in the city were estimated at 2,246,975, a 1.2% increase compared to the same period in 2022; for the first 7 months of 2023, the figure was 18,662,413, a 40% increase compared to the same period in 2022, and 53.3% of the annual plan for 2023. The total tourism revenue for July 2023 in Ho Chi Minh City is estimated at 12,760 billion VND, a 19.3% increase compared to the same period in 2022; for the first 7 months of 2023, it’s 93,593 billion VND, a 55% increase compared to the same period in 2022, and 58.5% of the annual plan for 2023.

The Hanoi Department of Tourism provided information that in July 2023, the capital city welcomed 2.38 million tourists, a 21.4% increase compared to the same period in 2022. Among them, international tourists were estimated at over 380,000, a nearly 2.5 times increase compared to the same period in 2022. The domestic market alone saw 2 million visitors, an 11.1% increase compared to the same period in 2022. The total tourism revenue is estimated to be around over 8.6 trillion VND, a 37.7% increase compared to the same period in 2022, and a 9.8% increase compared to June 2023.

Chart of Domestic Tourist Arrivals by Month, 2023 (in millions).
Source: Vietnam National Administration of Tourism.

Over the past 7 months, Hanoi’s tourism industry has welcomed 14.7 million tourists, a 38.7% increase compared to the same period in 2022. Among them, international tourists visiting Hanoi were estimated at 2.43 million, a 5.7-fold increase compared to the same period in 2022, while domestic tourists reached 12.3 million, a 20.6% increase from the same period last year. The total tourism revenue is estimated to reach 53.7 trillion VND, a 68.3% increase compared to the same period the previous year.

Meanwhile, Nguyen Thi Le Thanh, the Director of the Khanh Hoa Province Department of Tourism, evaluated that due to meticulous preparation, the tourism indicators for July in the province showed significant growth. The total number of visitors for sightseeing and relaxation in Khanh Hoa is estimated to have exceeded 4.85 million, according to the report on tourism activities in July 2023 by the Khanh Hoa Province Department of Tourism on July 28th.

Among them, visitors accommodated in lodging establishments are estimated at 1.25 million, a 210% increase compared to the same period in 2022. Among them, international visitors are estimated at 245,000, a 668% increase from the same period last year. The tourism revenue is estimated to have exceeded 5,793 billion VND, a 180% increase compared to the same period in 2022.

Cumulatively for the first 7 months of this year, the total number of international visitors to Vietnam has reached nearly 6.6 million, equivalent to 83% of the annual plan for 2023.

The Vietnam National Administration of Tourism assesses that with the current growth rate, the tourism industry requires 40,000 new employees annually and 25,000 employees need to be retrained. However, each year, educational institutions only train around 20,000 students, and the ratio of professionally trained tourism workers is low, accounting for only 43% of the total tourism workforce, with almost half lacking foreign language skills.

On the other hand, the quality of Vietnam’s human resources is relatively low on the international capacity scale. According to experts, the quality and productivity of labor in the tourism and hotel industry are still low. Specifically, labor productivity in Vietnam’s hotels is only 1/15 of Singapore’s, 1/10 of Japan’s, and 1/5 of Malaysia’s. As a result, domestic workforce is at risk of facing competition for jobs at home due to the significant number of foreign tourism workers from countries like the Philippines, Thailand, Indonesia, and Singapore working in Vietnam. Hence, there is a strong need to enhance the quality and development of Vietnam’s tourism workforce in the coming period.

Source: VnEconomy