Connect with us

Business

Vietnam’s tourism industry loses $23 billion because of Covid-19

Published

on

After a record-high growth rate in January, Vietnam’s tourism industry has fallen into a crisis caused by Covid-19.

The Vietnam National Administraiton of Tourism (VNAT) estimates that the number of foreign travelers to Vietnam has been 3.7 million this year, a sharp fall of 80 percent compared with 2019. The number of domestic travelers is predicted to decrease by 50 percent despite a lot of sale promotion programs.

Vietnam’s tourism industry loses $23 billion because of Covid-19

However, Covid-19 offers an opportunity to reconsider the tourism market structure.

Vietnam relies heavily on the northeastern market (China, Japan, South Korea and Taiwan) which brought 67 percent of total foreign travelers in 2019.

In 2015-2019, Chinese and South Korean travelers to Vietnam increased by 34-40 percent. The two markets alone brought 10 million last year out of total 18 million foreign travelers.

Meanwhile, travelers with high spending levels accounted for a small proportion. Travelers from European countries accounted for 12 percent, from the US 5.4 percent, and Oceania 2.4 percent.

The heavy reliance on certain markets leads to huge losses when troubles like Covid-19 occur. In some localities, the increase in number of Chinese travelers is inversely proportional to the growth of European and Japanese travelers. The sharp increase caused overloading in some destinations, putting pressure on local infrastructure and environment.

VNAT said the number of foreign travelers with high spending and long stay is still modest. This explains why in some segments the number of travelers is high, but revenue is low.

Foreign travelers stayed in Vietnam for 8.1 days on average in 2019 and they spent an average of $1,074. Meanwhile, foreign travelers stayed for nine days and spent $1,565 for each trip in Thailand.

That was why the total number of foreign travelers to Vietnam in 2015-2019 increased by 22.7 percent, but the total revenue rose by 20.9 percent only.

Phung Quang Thang from Hanoitourist said at the conference discussing tourism market restructuring on November 19 that it’s the right time to change strategies and choose foreign travelers with higher quality and higher spending.

There are many potential markets that Vietnam should consider.

According to Ngo Minh Duc, chair of HG Holding, the number of Indian travelers has increased rapidly since non-stop flights were first provided. Three or four Indian airlines are queuing to fly to Vietnam.

Duc revealed that about 300 chartered flights from India to Vietnam, slated for March and April 2021, are awaiting licenses.

Tran Minh Hoa, Vice Rector of the University of Social Sciences and Humanities, noted that European travelers to Vietnam are mostly from North Europe, while East European markets have great potential. Therefore, restructuring the market is a necessity.

Foreign travelers stayed in Vietnam for 8.1 days on average in 2019 and they spent an average of $1,074. Meanwhile, foreign travelers stayed for nine days and spent $1,565 for each trip in Thailand.

Thang of Hanoitourist predicted that the market of foreign travelers will only recover in 2022-2024. In the immediate time, Vietnam should target the near markets of Northeast Asia, Southeast Asia and India. When Vietnam opens the market fully, it needs to target markets with high spending capability and sustainability, such as Europe, the US and Australia.

Attracting domestic travelers

While domestic travelers account for 82 percent of total travelers, 4.7 times higher than foreign travelers, they only bring 44.3 percent of total turnover.

The aim is to increase spending on shopping, entertainment and non-tour services of both domestic and foreign travelers, and the proportion of revenue from domestic and foreign travelers from 44.3/55.7 percent currently to 55/45 percent and to 60/40 later.

Nguyen Minh Tam from Vietnam Airlines said to restructure the domestic market, it’s necessary to understand it well.

Before the pandemic broke out, many Vietnamese travelled abroad, about 9-10 million travelers a year. There is no exact figure about the amount of money they spent during the trips.

Tam said it is necessary to conduct surveys and analyze behaviors, and spending level of travelers to draw up plan to attract Vietnamese back to the domestic tourism market.

He also suggested drawing up strategies to attract travelers to new destinations, saying that Vietnam still has many beautiful undiscovered sites.

According to Thang, the number of domestic travelers fell from 84 million last year to 50 million this year. As all tourism firms are now targeting these travelers, they have had to slash tour fees to levels ‘which cannot be lower’.

Therefore, travelers will choose tours with differences and high quality. This requires travel firms to be more creative in designing tours and providing services. 

Ngoc Ha

Source: https://vietnamnet.vn/en/feature/vietnam-s-tourism-industry-loses-23-billion-because-of-covid-19-692492.html

Business

Solar power booms in the south

Published

on

Solar panels are installed on the roof of a hotel in the Mekong Delta city of Can Tho – PHOTO: TRUNG CHANH

CAN THO – After several years of development, the total capacity of rooftop solar power in southern Vietnam has far surpassed the capacity of the Hoa Binh Hydropower Plant, which was once the largest of its kind in Southeast Asia, according to Doan Duc Hung, deputy general director of Vietnam Electricity’s Southern Power Corporation.

“The Hoa Binh Hydropower Plant’s capacity is approximately 3,000 MW, while the total rooftop solar power output of the southern region amounts to some 5,000 MW at present,” he said.

Moreover, the total output of solar farms in the southern region has amounted to approximately 2,000 MW, five times larger than the Tri An Hydropower Plant’s capacity. “The figure showed that renewable energy has recently developed very fast in the southern region,” Hung concluded.

According to Vietnam Electricity (EVN), there were 101,029 rooftop solar power projects with a total installed capacity of nearly 9,296 MWp connected to the national grid as of late 2020.

EVN said Vietnam’s favorable policies for renewable energy development, including the prime minister’s Decision No. 11/2017/QD-TTg issued on April 11, 2017, and Decision No. 13/2020/QD-TTg issued on April 6, 2020, have helped renewable energy, especially solar power, boom in the country.

EVN’s data showed that the total installed capacity of solar power nationwide reached 19,400 MWp as of late 2020, accounting for 25% of the total installed capacity of the entire national power system.

Source: https://english.thesaigontimes.vn/80237/solar-power-booms-in-the-south-.html

Continue Reading

Business

Vietnamese livestreaming firm GoStream raises $1 million funding from VinaCapital Ventures

Published

on

Vietnam-based live video-streaming platform GoStream announced that VinaCapital Ventures has invested US$1 million in the company to help it expand its business.

Launched in 2017, GoStream is a multi-platform livestream broadcaster for social sellers, marketers, and content creators. 

It enables users to reach a larger audience from different platforms to increase visibility and get more views.

Currently, the platform claims to facilitate over 100,000 livestreaming sessions daily and also serve corporate clients.

In 2019, GoStream was listed by Facebook as one of the 30 most used livestreaming platforms in the world for 30 days.

GoStudio, a product of GoStream, won first prize at the Vietnam Techfest 2020 last November. The contest’s organizing committee recognized the product’s ease of use and adaptability to a range of online channels, including social commerce, online training and online entertainment.

“We look forward to working with GoStream as they further expand their capabilities and play an even greater role in Vietnam’s growing digitization,” Hoang Duc Trung, a partner at VinaCapital Ventures, said in a statement.

The startup previously also received $200,000 in investment from VinaCapital Ventures and Zone Startups Vietnam in the seed round.

VinaCapital Ventures, an asset management company with over $3 billion in assets under management, said it will invest further in Vietnam’s digital economy, which is expected to grow to $52 billion by 2025.

Revenue in the video-streaming segment in Vietnam is poised to reach $162 million in 2021, according to data by Statista.

Earlier in 2020, VinaCapital Ventures had also backed Vietnam-based facial recognition firm Wee Digital and Homebase, a proptech startup.

Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!

Source: https://tuoitrenews.vn/news/business/20210119/vietnamese-livestreaming-firm-gostream-raises-1-million-funding-from-vinacapital-ventures/58864.html

Continue Reading

Business

Developers struggle to sell high-end apartments in HCMC

Published

on

Developers struggle to sell high-end apartments in HCMC

Apartment buildings in District 2, Ho Chi Minh City. Photo by VnExpress/Quynh Tran.


The number of high-end apartments remaining unsold in HCMC soared by 74 percent year-on-year in the last quarter of 2020 as demand slumped.

Only 5,007 were sold in the quarter, according to real estate consultancy CBRE. Nearly 6,700 units at six projects had entered the market in the period. Overall new apartment supply topped 17,200 units.

The high-end segment, with prices of $2,000-4,000 per square meter, accounted for 76 percent of the country’s total apartment supply.

According to the Ho Chi Minh City Real Estate Association (HoREA), the oversupply of high-end apartments is causing concern by making the real estate market unsustainable.

According to its chairman, Le Hoang Chau, some developers registered their projects with the Department of Construction with low prices but later hiked them to high-end levels to increase their profits.

The excessive supply of high-end apartments and a dearth of affordable ones has affected low- and middle-income people.

Besides, over 60 percent of high-end apartments are bought by speculators, which is threatening the sustainable development of the housing market, HoREA said.

Source: https://e.vnexpress.net/news/business/industries/developers-struggle-to-sell-high-end-apartments-in-hcmc-4223582.html

Continue Reading

Trending