Strengths and Opportunities
Vietnam’s tourism sector is experiencing robust growth. In 2024, the country welcomed 17.5 million international visitors with a 39% increase compared to 2023, generating an estimated VND 840 trillion in total revenue. This rebound underscores Vietnam’s appeal as a compelling destination on the global tourism map.
Looking ahead to 2030, Vietnam has set ambitious goals: attracting 25–28 million international visitors and 130 million domestic travelers, with projected revenues of VND 2.63 quadrillion, contributing 13-14% to national GDP. To realize these targets, the government has rolled out breakthrough policies, notably Resolution No. 08-NQ/TW designating tourism as a pillar economic sector, alongside a more liberal visa regime.
Future breakthroughs will rest on the alignment of policy and action, including: streamlining entry and exit procedures, expanding transport infrastructure for better connectivity, accelerating digital transformation, developing green tourism, and investing in human capital as the central driver of differentiation.
Core Values and Strategic Vision
This article examines six pillars forming the “D.U.L.I.C.H” formula including Digitalization, Uniqueness, Local Empowerment, Innovation, Connectivity, and Human-centric approaches. Together, these elements serve as the keys to unlocking Vietnam’s potential, addressing its challenges, and elevating the industry to new heights.
(1) D – Digitalization: The Foundation for Vietnam’s Tourism to Harness Diversity and Reach the World
In the digital era, Vietnam’s tourism industry is presented with a significant opportunity to break through and establish itself as a spearhead of the national economy. To realize this ambition, digitalization is not merely a trend but a core foundation that allows the country to unlock its full diversity and showcase it globally. This is the central message: Digital Tourism – the platform that brings Vietnam’s rich beauty to everyone.
Vietnam possesses one of the strongest foundations for digital tourism development: a young, tech-savvy population. With more than 70% of citizens using the internet and one of the highest smartphone penetration rates in the region, the country benefits from both a vibrant domestic market and a workforce eager to embrace innovation. Through digital platforms, the beauty of Vietnam’s mountains, rivers, long coastlines, and the cultural wealth of its 54 ethnic groups can be presented more vividly than ever before. With videos, 360-degree images, and virtual tours, travelers can explore unique destinations from the comfort of their homes - an advantage that helps Vietnam reach global audiences with ease.
Yet despite these strengths, challenges remain. The national tourism data system is fragmented and lacks integration, hindering effective management and analysis. Most small and medium-sized enterprises lack both the skills and financial resources to invest in technology, leaving them behind in the digital race. At the same time, this gap also creates opportunity. The boom in social media platforms and online travel marketplaces has opened up fertile ground. Experts forecast that Vietnam’s online travel market will generate billions of U.S. dollars in revenue in the coming years. Emerging trends such as artificial intelligence for personalized itineraries and virtual tourism are opening doors to new markets, especially when traditional tourism encounters barriers.
However, competition is fierce. Neighbors such as Thailand and Singapore have long adopted comprehensive digital tourism strategies, with major investments in smart platforms and global promotion systems. To avoid falling behind, Vietnam must take decisive steps. Cybersecurity and customer data protection also pose major risks, requiring strict safeguards from both government agencies and businesses.
Seizing the opportunity requires bold action. First, Vietnam needs to build a unified national digital tourism platform, integrating information on destinations, services, and booking systems in one place. Such a system would not only enhance convenience for travelers but also generate valuable big data for policymakers to make informed decisions.
In parallel, strengthening digital skills across the industry is essential. Training and capacity-building programs should help small businesses and local communities build their own websites, optimize search visibility, and connect with customers through social media. Financial and technical support will be key to ensuring that even the smallest enterprises can participate in the digital shift. Once every stakeholder is digitally literate and empowered to apply technology, Vietnamese tourism will be positioned for true breakthrough.
Digitalization is the key to unlocking Vietnam’s tourism potential. By leveraging demographic advantages, capitalizing on emerging technologies, and addressing existing challenges, Vietnam can elevate its tourism industry to new heights, emerging not only as a regional leader but as a strong global competitor.
(2) U – Uniqueness: The Soul That Defines the Irreplaceable Value of Vietnamese Tourism
As global tourism continues to expand, Vietnam holds a singular competitive advantage: the uniqueness of its culture and people. This distinctiveness forms the very soul of the nation’s tourism industry, creating values that cannot be replicated and reshaping how visitors experience and perceive the country. The core message for Vietnam’s tourism in the digital era is clear: Experiential travel rooted in culture as the soul, delivering ultimate value.
Vietnam’s strength lies not only in its natural landscapes but also in its long history and rich cultural identity. With eight UNESCO-recognized World Heritage Sites and the traditions of 54 ethnic groups, the country is a living, colorful museum. Centuries of cultural exchange and adaptability have produced multi-layered experiences that go far beyond mere sightseeing. Today’s travelers seek more than scenic views; they yearn to immerse themselves in local life, explore the subtleties of cuisine, music, and customs, and find authentic human connections.
Recent surveys show that more than 75% of international visitors to Vietnam express a desire to learn about and engage with local culture. Many are willing to pay a premium for authentic and meaningful experiences such as meeting artisans, learning pottery, or taking part in traditional festivals. This trend highlights Vietnam’s immense potential to cater to the global demand for cultural and experiential tourism.
Yet challenges persist. The most pressing issue is the lack of standardization in developing distinctive tourism products. In the pursuit of profit, many destinations offer generic, mass-produced experiences that lack depth and sometimes compromise cultural authenticity. Souvenirs often come from mass production, overshadowing the beauty of traditional crafts. Such commercialization risks undermining core cultural values, reducing unique features to shallow, forgettable encounters.
At the same time, these shortcomings present opportunities for transformation. Businesses and communities can target niche segments that align closely with evolving traveler expectations.
To fully harness the uniqueness of Vietnamese tourism, concrete actions are needed. First, emphasis should be placed on developing high-value niche products. Culinary tours exploring dishes such as phở and bún chả in Hanoi, silk-weaving experiences in Hội An, or homestay programs with ethnic minority groups in the northern highlands are examples that both generate revenue and preserve cultural heritage.
Second, the direct participation of artisans and local communities in designing and operating tours must be prioritized. As true custodians of cultural authenticity, their involvement ensures originality while creating sustainable livelihoods.
In the global race, Vietnam cannot compete on low costs or natural scenery alone. Its enduring strength lies in the “soul” of its culture and the sincerity of its people. By embracing experiential tourism and placing culture at the heart of development, Vietnam can build a tourism industry that is not only economically prosperous but also spiritually enriching, ensuring that every visitor departs carrying with them a genuine fragment of the country’s soul.
(3) L – Local Empowerment: Building Sustainable Tourism Through Community Ownership
For tourism to evolve into a truly sustainable industry, the central role of local communities cannot be overlooked. With their genuine hospitality and distinctive cultural heritage, they are the soul of every destination. Empowering local people is not only a social objective but also a critical economic strategy which is captured in the guiding message: Community-based tourism – sustainable development rooted in local heritage.
Vietnam’s greatest competitive advantage lies in the warmth and friendliness of its people. When residents participate directly in services such as homestays, local cuisine, and experiential tours, they bring intangible values that cannot be replicated. This allows visitors to enjoy authentic, personal encounters while keeping costs affordable. A recent survey revealed that more than 60% of international tourists in Vietnam expressed particular satisfaction with the friendliness of local communities.
Despite these strengths, community-based tourism faces considerable challenges. Many local households lack professional skills in management, marketing, and foreign languages. Most operate based on experience rather than structured training, with little understanding of how to promote their products effectively on digital platforms. As a result, economic benefits are often unevenly distributed, with the bulk of profits captured by intermediary travel agencies.
Yet these obstacles also represent opportunities. Globally, responsible and community-based tourism is gaining momentum. According to a United Nations report, 78% of travelers prefer destinations where they can contribute positively to local communities. Digital technology, particularly social media, enables small communities to reach customers directly and overcome geographic barriers.
The greatest challenge now is unfair competition from larger enterprises. Some low-cost tours are organized without proper quality assurance, damaging the reputation of entire communities. Insufficient oversight can also lead to exploitation of residents or the erosion of cultural authenticity.
To ensure the sustainable growth of community-based tourism, coordinated solutions are required, linking policy with practical action. First, comprehensive training programs must be implemented for local residents, focusing on homestay management, online marketing skills, use of platforms such as Airbnb, and basic language training.
At the same time, equitable models of cooperation between businesses and communities are essential. Travel companies can act as advisors providing technological support and promotional expertise while locals deliver the services and retain the majority of profits. This approach not only secures sustainable livelihoods but also incentivizes communities to preserve and promote their cultural heritage.
Empowering local communities is not simply one development option; it is the only path toward building a truly sustainable Vietnamese tourism industry. By investing in people and fostering fair partnerships, Vietnam can transform the innate hospitality of its people into a unique competitive edge that cannot be duplicated.
(4) I – Innovation: Creative Tourism: A Technological Lever to Elevate Vietnam to New Heights
In a rapidly shifting global tourism landscape, innovation has emerged as the decisive key for Vietnam to overcome challenges and deliver unique, future-oriented products. It is not merely an ambition but a matter of survival—reflected in the message: Creative Tourism: A Technological Lever to Elevate Vietnam to New Heights.
Vietnam possesses a solid foundation to drive innovation: a stable political environment that attracts investment and builds business confidence; and a young, dynamic workforce with strong entrepreneurial spirit and the ability to adapt quickly to technology. According to the Global Innovation Index, Vietnam currently ranks 59th worldwide, underscoring its potential to apply cutting-edge solutions to the tourism sector. Technologies such as artificial intelligence (AI), virtual and augmented reality (VR/AR), and the Internet of Things (IoT) are no longer distant concepts but are steadily being integrated into smart tourism products.
The rapid growth of travel-tech companies offers enormous opportunities. Startups are introducing breakthrough solutions ranging from smart hotel management systems and virtual tour guide applications to specialized booking platforms. At the same time, supportive government policies are paving the way for new initiatives.
Nonetheless, Vietnam’s tourism startup ecosystem remains young and fragmented. Technology adoption is still slow and lacks scale, particularly among small and medium-sized enterprises. Investment in research and development requires significant capital, while the constant pace of technological change forces businesses to adapt quickly. Competition from established global platforms and regional startups further intensifies the challenge.
Turning potential into reality demands concrete measures. First, Vietnam should establish tourism technology incubators and innovation hubs, providing startups with access to capital, expertise, and networking opportunities. This would nurture solutions tailored to Vietnam’s tourism landscape.
At the same time, traditional tourism businesses must be encouraged to adopt new technologies, for instance, using VR/AR to offer immersive previews of eco-tourism sites, or leveraging IoT to manage energy efficiency in resorts. Such applications can create more modern, efficient, and sustainable tourism products.
Innovation is the driving force that will enable Vietnam’s tourism industry to transcend its current limitations. By capitalizing on political stability, youthful human resources, and government support, Vietnam is well-positioned to become a leading tourism hub, delivering fresh, distinctive value to travelers worldwide.
(5) C – Connectivity. Connected Tourism: Bridging Distances, Creating Seamless Journeys Across Vietnam
In the global tourism landscape, connectivity has emerged as a vital factor shaping the visitor experience. For a country with Vietnam’s geographic length and cultural diversity, connectivity extends far beyond transport infrastructure, it is the thread that weaves together destinations, services, and people. The core message of Vietnam’s tourism in the digital age can be summarized as: Connected Tourism: Bridging Distances, Creating Seamless Journeys Across Vietnam.
Vietnam’s strategic location positions it as a key gateway for trade and travel in the region. Centuries of cultural exchange have given rise to a rich and diverse identity, allowing visitors to discover multiple cultural traditions within a single journey. Transport networks, particularly air travel, have expanded significantly. Today, Vietnam boasts 22 airports, including 10 international hubs, enabling smooth movement for both domestic and international travelers. The growth of low-cost airlines has further democratized travel, catering to the rising trend of independent tourism where visitors explore multiple destinations in a single trip.
The surge in demand for self-guided travel presents major opportunities for Vietnam’s tourism sector. Increasingly, travelers wish to design their own itineraries and uncover lesser-known destinations. Yet, challenges remain. Connectivity between regions, especially remote areas still suffers from limited roads and inadequate public transport. This not only creates inconvenience but also results in uneven service quality across regions. A recent survey revealed that around 35% of tourists expressed dissatisfaction with the lack of information and difficulties in domestic travel, particularly when venturing off the beaten path.
Connectivity also faces unpredictable challenges such as the COVID-19 pandemic, which disrupted tourism worldwide and caused severe economic losses. Compounding this is the lack of coordination across service providers, which often leads to fragmented, disjointed experiences for visitors.
To transform Vietnam into a truly connected tourism hub, comprehensive solutions are needed. First, significant investment must be directed toward transport infrastructure, not only roads and aviation, but also railways and waterways to establish a robust multimodal network. Examples include the North–South Expressway and new international airport projects.
Equally important is strengthening collaboration among tourism businesses. Tour operators, hotels, and transport providers should work together to develop integrated, seamless travel packages that allow visitors to enjoy complete journeys without the burden of intricate planning. Finally, the development of digital platforms that link service providers and centralize information will empower travelers to search, compare, and book with ease, ultimately bridging gaps of distance and time.
(6) H – Human-Centric. Humanistic Tourism: Hospitality as the Guiding Principle to Win the Hearts of Travelers
In the fiercely competitive global tourism industry, technology, infrastructure, and pricing may serve as tools of competition, but they are not the defining factors. What truly sets Vietnam apart lies in the warmth of its hospitality and the sincerity of its people - qualities that embody the very soul of Vietnamese tourism and chart the path for its sustainable growth. The core message is clear: Humanistic Tourism: Hospitality as the Guiding Principle to Win the Hearts of Travelers.
The Vietnamese people, known for their friendliness, openness, and adaptability, are an invaluable asset to the tourism sector. According to a recent report by the Vietnam National Administration of Tourism, more than 80% of international visitors expressed a strong desire to return, citing the hospitality of the local population as one of the primary reasons. People are the true soul of service, shaping experiences that cannot be replicated. A warm smile, genuine enthusiasm, or heartfelt assistance from a local resident often leaves a deeper impression than any architectural landmark.
The digital era presents new opportunities to enhance this human touch. Technology can take over repetitive tasks such as booking, payments, and check-ins, freeing staff to devote more time to personal interactions. This shift elevates service quality and creates more human-centered, memorable experiences.
Yet challenges remain. A significant portion of Vietnam’s tourism workforce still lacks adequate soft skills, foreign language proficiency, and professional service orientation. This inconsistency risks diminishing the overall image of Vietnamese tourism. Surveys indicate that only about 30% of tourism workers possess strong technical expertise and language skills, despite growing market demands.
The greatest challenge lies in over-reliance on technology. If automation overshadows human engagement, services risk becoming impersonal, eroding the very essence of hospitality that gives Vietnam its competitive edge.
To overcome these shortcomings and harness the full potential of its people, Vietnam must pursue a comprehensive strategy. Investment in high-quality workforce training is essential, with programs focusing on soft skills, problem-solving, and language capabilities, empowering staff to interact confidently and professionally with international visitors.
At the same time, technology should serve as an enabler, not a replacement. Businesses can leverage customer relationship management (CRM) systems to personalize services while maintaining direct human interaction. By processing information more efficiently, staff will have more time to listen and respond thoughtfully to travelers’ needs.
In conclusion, Vietnam cannot rely on technology alone to secure its place in global tourism. Its true strength lies in the warmth, sincerity, and hospitality of its people. By placing humans at the center and using technology to amplify, not replace their role, Vietnam can genuinely capture the hearts of travelers worldwide.
Conclusion
An analysis of the six pillars of Vietnamese tourism through the D.U.L.I.C.H. framework outlines a clear roadmap for the sector’s breakthrough. Digitalization and Innovation serve as technological levers, enabling modernization and elevating Vietnam’s tourism industry onto the global stage. Yet technology alone cannot replace the soul of tourism: the Uniqueness of Vietnamese culture and the heartfelt Hospitality of its people. For truly sustainable growth, it is essential to Empower Local Communities, ensuring they become custodians of their own heritage and value. At the same time, strengthening Connectivity across infrastructure and services will eliminate barriers, creating seamless experiences for travelers.
Ultimately, the D.U.L.I.C.H. formula represents not only a strategic vision but also a solemn commitment. By harmoniously blending modern technology with timeless cultural identity, Vietnam’s tourism will not merely conquer markets but also win the hearts of travelers around the world.
(Excerpted from the book “Vietnam: Aspiration to Rise” by journalist Vuong Xuan Nguyen)
