TOURISM AND HOSPITALITY IN VIETNAM

Vietnam's economy

Vietnam's economy is a mixed economy. While the economy is increasingly market of the State's intervention in the economy remains at high levels.
Vietnam government admitted that Vietnam's economy is an economy operating under market mechanisms, and many countries and economic blocks including a market economy advanced recognition of Vietnam as well as background market economy.
Vietnam has many economic sectors. Manner determined by the current government of Vietnam has the following economic sectors: state economy, collective economy, private economy (individual, small owners, private capital), private economic is the state, economic capital is foreign investment.
In 2010 Vietnam gross domestic product is estimated to be 6.78%, making the average growth rate from 2006 to 2010 7.01%. (GDP Vietnam 2010 is 104.6 billions USD).

Analysis of the hospitality market in Vietnam

Vietnam is an emergent hospitality market.
Described by some observers as the next Asian Tiger, Vietnam has emerged from political isolation with a rush. Some USD 18.2 billion in capital has financed nearly 1,300 separate projects as of January, 1996 following economic reform that opened the country to foreign investment. Of those projects involving foreign investment, the service and tourism industries ranked second, accounting for USD $6.3 billion as of January, 1996. The Vietnam government has reported it expects foreign investment of some USD $40 billion between 1994 and the year 2000. For international companies in the hospitality and tourism industries, this Southeast Asian nation represents both a highly promising and problematic market. Major hotel development underway in the country's two major cities Ho Chi Minh City and the capital city of Hanoi - may result in market saturation by 1998. It is to be noted that there are now 231 foreign joint ventures for tourism capitalized at nearly USD $5.0 billion, and a number of new hotels of international standards have been built in Hanoi, Ho Chi Minh City, Hai Phong and Danang. Development outside these cities has already become a focus of international groups and may ultimately be a source of considerable opportunity as crumbling infrastructure is rebuilt and the country takes its place in the global trade arena.
According to a survey by consulting firm and managing real estate CB Richard Eliss (CBRE Vietnam), from now to 2020, demand for hotel rooms for the whole country of Vietnam will be very high while the supply is very limited.
Currently in Vietnam, the standard rooms of the hotels 3-5 stars just reached nearly 5,000 rooms and the standard rooms of hotels 1-2 stars nearly 6,300 rooms. Meanwhile, according to surveys of CBRE, the demand in 2020 for hotels 3-5 stars would be about 11,100 rooms and for hotels 1-2 stars more than 20,000 rooms.
One of the underlying cause boosting the demand for hotel rooms in Vietnam is the growth of Vietnam's tourism. There are also other causes such as the attractiveness of investment in Vietnam, for investors, foreign investment funds, particularly since Vietnam joined the WTO.
Hotel management group Accor International is aiming to end in 2013 will manage 30 hotels with different brands in Vietnam hospitality market.
Patrick Basset, executive vice president of Accor in Vietnam, the Philippines, Japan and South Korea, said that Accor is currently managing 14 hotels with the brands Sofitel, MGallery, Novotel and Mercure in Vietnam, and the 16 other future hotels will be active in three years.
Pullman Resort on the island Hoa Phuong in Hai Phong, and Pullman Da Nang Resort are the two luxury brand projects of Accor group. With these two new projects, Accor will manage a total of five Pullman hotels in Vietnam hospitality market.
Pullman hotels in Vung Tau, Da Nang and Hanoi will be launched in 2011, and Pullman hotel in Hai Phong city, and Pullman hotel resort on the island Hoa Phuong in Hai Phong, will be inaugurated in 2013.

Presented by Frédéric NGUYEN EICHHOLZER
MBA2B, IEMI-CMH PARIS.