Vietnam’s tourism sector upbeat amid US tariff reprieve

According to his Truth Social post in the early hours of Thursday (Vietnam time), Vietnam is among the over 75 countries which the U.S. granted a 90-day suspension of retaliatory tariffs and a 10-percent tariff rate during this period to conduct further negotiations.

Tour operators and travel agencies viewed the temporary delay as a positive signal for both inbound and outbound tourism.

Huynh Phan Phuong Hoang, deputy CEO of Vietravel, told Tuoi Tre (Youth) newspaper that the temporary suspension of U.S. tariffs alleviates some pressure on Vietnam’s tourism sector.

While trade tensions could indirectly affect travel spending, the delay offers room to adjust pricing and restructure business plans.

"As long as production and trade remain stable, companies can absorb potential cost increases and keep tourism demand steady," Hoang explained.

She added that travel spending is influenced by multiple factors like income, consumer sentiment, and the overall business climate.

Support from related sectors such as transport, entertainment, and hospitality, along with agile marketing strategies, can help maintain the industry's momentum, she noted.

She warned, however, that the tariff delay should not be mistaken for cancelation.

According to the Vietravel executive, businesses must use this time to diversify customer bases and develop new tourism products that can adapt to any future trade shifts.

Tu Quy Thanh, director of Ho Chi Minh City-based Lien Bang Travelink, which specializes in offering outbound and inbound tours, believed that the tariff pause would relieve stress on travelers and businesses, leading to fewer canceled tours and increased booking confidence.

Truong Duy Thanh, general director of Unisky JSC based in Ho Chi Minh City, echoed the sentiment expressed by Hoang, urging businesses to refresh their products to attract and retain their customer base.

According to the Vietnam National Authority of Tourism, the country welcomed over six million international visitors in the first quarter, marking a 29.6-percent year-on-year increase and a remarkable 134-percent rise compared to the same period in 2019.

This represents the highest number of international arrivals in a single quarter to date, generating a total revenue of VND242 trillion (US$9.4 billion).

Key source markets included China and South Korea, followed by Taiwan, the U.S., Japan, Cambodia, Australia, Malaysia, India, and Russia.

European markets also gained strength, with arrivals from the UK up 23.5 percent, France 28.3 percent, Germany 23.3 percent, and Russia 110.5 percent.