Vietnam promotes Shopping Tourism

19-06-24

Shopping tourism represents an exceptional opportunity for Vietnam, especially with the return of Chinese tourists, known for their high spending power. Although China has historically been a low-spending market in Vietnam, the trend must change quickly to compete with other attractive destinations.

Nam's description of the generosity of Chinese tourists is not exaggerated. According to the World Travel and Tourism Council, in 2023, Chinese tourists led in shopping spending with an average of $1,350 per trip. The return of these visitors to Vietnam, after a four-year absence since the outbreak of COVID-19, offers an opportunity to revitalize the local tourism industry.

In May 2024, China regained the top spot on the list of tourist-sending markets to Vietnam, with more than 357,000 visits in five months, accounting for 5% of total foreign visitors.

This steady flow of Chinese tourists has not only revitalized destinations such as Nha Trang, Da Nang and Phu Quoc, but has also generated great expectations of improved revenues for the tourism industry.

However, despite their influx, the average spending of Chinese tourists in Vietnam remains low. In 2022, a Chinese visitor to Vietnam spent approximately $884, compared to $1,838 in South Korea and $1,972 in Japan. This disparity highlights the urgent need to improve product offerings and experiences to attract more tourist spending.

To improve this situation, it is crucial for Vietnam to develop a quality product system and create attractive shopping areas. The implementation of outlet zones, duty-free stores and free trade areas can turn Vietnam into a competitive shopping destination. According to Kevin Cheong, a tourism and destination development consultant, Chinese tourists are willing to spend wherever they visit, and Vietnam must position itself to capture this trend.

It also highlights the importance of creating an environment conducive to shopping tourism. A factory store can hold visitors for a whole day, and the longer they stay, the more they will spend. In addition, the nighttime economy, with its combination of entertainment, dining and shopping, can become a significant economic growth engine.

To take full advantage of this opportunity, Vietnam needs to integrate the shopping tourism stimulus strategy into its Tourism Development and Goods Export Strategy. This includes the creation of dedicated shopping malls for international tourists in the country's major tourist destinations, ensuring high quality and controlled products.

Vietnam has a golden opportunity to transform its tourism industry by improving its shopping offer. With the right strategy, it can attract high-spending tourists and position itself as a leading shopping tourism destination in Southeast Asia.