Many travel and tourism companies in Vietnam have recorded a significant increase in spending by international tourists during their trips in the country, along with the impressive growth in arrivals of international visitors so far this year. 

If Vietnamese tour operators develop and offer more tourist products, especially those serving travelers at night, the expenditure by international travelers will further rise in the coming time.

Tran Phuong Linh, director of marketing - information technology of Ho Chi Minh City-based Ben Thanh Tourist Service Corporation (BenThanh Tourist), said that the firm has so far this year recorded strong growth in attracting foreign visitors, with both the number of travelers and revenue soaring more than 50 percent against 2023. 

The company’s traditional and new inbound markets have posted remarkable results, with India and Taiwan being the largest sources, followed by European countries.

Notably, the daily average spending per tourist over the first half of this year has ranged from US$80 to $140, much higher than previously.    

Types of tourism that have attracted most tourists include trans-Vietnam tours, nature exploration trips, resort tours, local cultural experience journeys, MICE tourism, and educational tourism.

“In Ho Chi Minh City, international tourists tend to choose travel programs that offer them chances to visit historical relics, learn about local arts and culture, and explore local gastronomy, especially traditional dishes as well as Vietnamese coffee culture,” Linh said.

At Ben Thanh Market in District 1, Ho Chi Minh City, a must-see destination for many foreign visitors, many businesses have been busy serving such guests recently.

Higher spending by international travelers at the market has contributed about 60 percent of the total revenue of the market in the year to date, the market management board reported.

Stronger spending by international visitors has also been reflected in the amount of value added tax (VAT) refunded to foreign tourists in Vietnam. 

According to the Ho Chi Minh City Customs Department, in May alone, foreign visitors bought nearly VND120 billion ($4.7 million) worth of goods to bring with them when exiting Vietnam from the southern city. 

That means a VAT refund amount of more than VND8 billion ($313,700) was paid in the month.

In January-May, the city’s customs authority refunded a total of VND40 billion ($1.56 million) to more than 7,200 foreigners carrying goods totaling VND460 billion ($18 million) in value when they left the country.

“Among the groups of tourists who receive VAT refunds, the biggest spenders are not from European countries or the U.S., but from India," a representative of the department commented.

"Indian tourists were fond of shopping."

This vibrant tourism landscape has emerged for several reasons, including the recovery of the world economy after the COVID-19 pandemic, the establishment of more direct flights to Vietnam, and Vietnam’s new visa policy that offers greater facilitation for international visitors, among others, according to tourist operators.

The proportion of spending using international cards issued abroad on food and beverages in Vietnam is about 40 percent, on fashion and cosmetics 14 percent, jewelry and watches approximately 12 percent, and supermarkets and convenience stores over 10 percent.

“This year, spending by foreign travelers has gradually increased in supermarkets, convenience stores, and on jewelry and watches, while decreasing on fashion, cosmetics, and technology products,” Payoo, a payment platform, said.

Given the fame of Vietnamese cuisine, it is not surprising that international visitors spend most on food and beverages. This also indicates that Vietnamese tourism lacks products that could encourage more spending on clothes, souvenirs, and other items.

Over the first five months of this year, Vietnam welcomed 7.6 million arrivals of international travelers, an increase of 64.9 percent year on year and 3.9 percent compared to the same period of 2019, according to the General Statistics Office of Vietnam.   

According to Michael Kokalari, chief economist at VinaCapital, the number of Chinese tourists to Vietnam in January-May increased more than 300 percent year on year, equaling 75 percent of the pre-pandemic level.

He expected this rate to continue rising to reach 85 percent in the rest of this year, contributing to bringing the total number of international visitors to Vietnam in 2024 to 19 million, or five percent higher than the pre-COVID level.

With such a climb, the tourism sector will contribute more than one percentage point to Vietnam’s GDP growth in 2024, Kokalari said.

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