Vietnam has seen significant growth in its outbound tourism sector in recent years. This trend is driven by a combination of economic growth, increasing disposable income, and an improved passport ranking that allows Vietnamese citizens to travel more freely to 51 countries visa-free as of August 2024. The country’s tourism boom is also supported by enhanced infrastructure, expanding international flight routes, and increasing interest in global travel among Vietnamese people.
Vietnam, located in Southeast Asia, boasts a rich history and diverse geography. Historically, the country has experienced periods of colonization, war, and reunification, shaping its unique cultural and social landscape. Geographically, Vietnam features a long coastline along the South China Sea, the Red River Delta in the north, and the Mekong Delta in the south, making it a land of varied landscapes and climates.
TTW Editor-in-Chief Mr. Anup Kumar Keshan stated: “This initiative marks a monumental shift for Vietnam’s outbound travel industry, empowering Vietnamese citizens to explore the world with unprecedented ease. With visa-free access to 51 countries as of August 2024, including key destinations such as Thailand, Iran, and Singapore, Vietnam is not only enhancing global mobility but also strengthening its cultural and economic ties with these countries. This move will undoubtedly encourage more Vietnamese travelers to embark on international adventures, enriching their experiences and fostering global connections.”
As of 2024, Vietnam ranks 88th on the Henley Passport Index. This ranking reflects the number of countries that Vietnamese passport holders can travel to without a visa or with visa-on-arrival options. Currently, Vietnamese citizens can travel to 51 countries without needing a visa, enhancing their ability to explore the world.
Vietnam’s Economy and GDP
Vietnam’s economy has witnessed significant growth over the past decade, marked by a consistent increase in real GDP since 2019. In 2023, the GDP grew by about 5% compared to the previous year. This positive trend is expected to continue through 2029, driven by robust export activities, increasing domestic demand, and a thriving manufacturing sector.
Real GDP, which measures the value of all goods and services produced within an economy and adjusts for inflation, serves as a crucial indicator of economic health. This growth has led to higher consumer spending, with average monthly incomes rising by 3.8% in 2018, fostering greater expenditure on popular consumer goods like those from Vinamilk and P/S. Projections for GDP growth rates from 2019 to 2029 reflect this optimism, with figures ranging from 2.55% to 8.12% annually.
Vietnam Outbound Tourism Dynamics
Vietnam’s Travel & Tourism market is poised for substantial growth in the coming years. By 2024, the market’s revenue is projected to reach $3,252 million. It is expected to maintain an impressive annual growth rate (CAGR 2024-2029) of 5.68%, leading to a market volume of $4,286 million by 2029. The Hotels segment will be the largest, with a projected market volume of $1,582 million in 2024.
The number of users is anticipated to rise to 20.12 million by 2029, with user penetration increasing from 13.7% in 2024 to 21.1% by 2029. The average revenue per user (ARPU) is expected to be $239.20. Notably, 66% of the total revenue will likely be generated through online sales by 2029. On a global scale, the United States is projected to generate the most revenue in this market, with $214 billion in 2024. Vietnam’s market growth is driven by its stunning natural beauty, rich history, and diverse cultural offerings.