Brian Jeffrey
As Vietnam seeks to enhance its tourism infrastructure amidst financial constraints, experts emphasize the need for greater involvement from the private sector, supported by robust policies and strategic long-term plans.
With goals to attract 25–30 million foreign visitors and generate 36 billion USD for the economy by 2030, Vietnam’s tourism sector is primed for rapid expansion. However, experts caution that existing infrastructure lacks the necessary quality and scale to achieve these ambitions, placing Vietnam behind its regional competitors.
Currently, Vietnam ranks 59th out of 119 countries in the Travel and Tourism Development Index, lagging behind nations like Thailand, Malaysia, and Indonesia. A crucial gap exists in its transport infrastructure, encompassing roads, airports, seaports, along with inadequate logistics and support services.
Nguyen Quoc Ky, Chairman of Vietravel Holdings, highlighted that tourism relies heavily on integrated infrastructure. He noted that congested airports, poor road conditions, and insufficient connectivity could impede even the most desirable tourist spots from realizing their potential.
The national tourism infrastructure development plan for 2021–2030, with a vision for 2045, estimates an investment requirement of around 3.6 quadrillion VND (approximately 144 billion USD). Of this, only 3–5% is projected to come from government sources (including ODA), necessitating that private and foreign investments cover 95–97% of the total.
Key investment priorities include upgrading major international airports such as Long Thanh, Tan Son Nhat, and Noi Bai; improving transport connections between primary destinations; developing 4-5 star hotels and luxury resorts; constructing international cruise and cargo ports; and enhancing utilities, telecom, and smart infrastructure at tourist attractions.
Given the tight budgetary limits, leveraging private investment through public–private partnerships (PPP) has become essential. Nonetheless, numerous large-scale tourism projects face delays due to legal hurdles and land acquisition challenges.
Experts have pinpointed a lack of cohesive and consistent planning as a primary obstacle. This fragmented approach has caused postponements and indefinite holds on several billion-dollar projects.
Vietnam’s investment objectives through 2025 aim for 36 billion USD in public funding and 28 billion USD in foreign direct investment (FDI). This requires an additional 96 billion USD from private sector contributions, primarily in tourism. Achieving these goals hinges on clear policy guidance and integrated master plans from the government.
Nguyen Quang Trung, Director of Corporate Planning and Development at Vietnam Airlines, suggested establishing a collaborative task force of airlines and travel companies to improve visa regulations, flight plans, and marketing strategies.
The government is also encouraged to implement supportive initiatives, including credit options, tax incentives, and streamlined investment processes for tourism infrastructure projects. Major infrastructures like airports, seaports, and expansive resorts should be prioritized as if they were national economic projects.
With the government taking an active role, a transparent legal structure and defined risk-sharing arrangements in project initiation phases will facilitate private investment by ensuring effective management and operational success.
The PPP model has already seen success in select projects, such as high-standard developments in Ha Long, Quang Ninh province, and upscale resorts in Phu Quoc, Kien Giang province. However, such successful PPP instances remain limited and have yet to demonstrate the full potential of the sector.
To foster a new wave of private investment in tourism infrastructure, Vietnam needs to implement competitive and transparent bidding processes, ensure consistent government support, and emphasize the coordinated development of essential infrastructure.
For those investing in high-end resorts and tourism real estate, having access to transparent planning details and a stable legal framework is crucial. Achieving this will necessitate improved coordination between tourism development and overall urban planning, paving the way for a greener, smarter, and sustainable future.
