IMPACT COVID 19 ON THE TOURISM INDUSTRY IN

VIETNAM

Teacher: Bui Le Thuy Trang

Student: Ly Thi Nguyet
Class: BA0502
Contents
I. INTRODUCE...................................................................................................3
II. IMPACT OF COVID-19 ON VIETNAM'S TOURISM INDUSTRY.....3
2.1 Situation of Vietnam's tourism industry.................................................3
2.2 The impact of the covid-19 pandemic on Vietnam's tourism................4
2.3 Assessing the impact of the COVID-19 pandemic on Vietnam's
tourism.................................................................................................................5
2.3.1 Positive impact:...................................................................................5
2.3.2 Negative impact......................................................................................5
III. Solutions to the impact of covid 19 on Vietnam's tourism industry........6
IV. Conclusion.....................................................................................................8
 IMPACT COVID 19 ON THE TOURISM INDUSTRY IN
VIETNAM
I. INTRODUCE
Vietnam's tourism is considered a spearhead economic sector with a lot of potential,
diversity, and abundance. 2019 is a successful year for Vietnam's tourism, not only
reflected in the statistics of international and domestic tourists, and revenue, but also in
the titles that Vietnam's tourism has achieved.

However, the Covid-19 pandemic has had a relatively large impact on the Vietnamese
economy, in which the tourism industry has been affected quite heavily.
II. IMPACT OF COVID-19 ON VIETNAM'S TOURISM INDUSTRY
II.1 Situation of Vietnam's tourism industry
Our country has great potential in many aspects for tourism development, has rich
natural conditions, many famous scenic spots, a long cultural tradition with many
festivals and good customs and habits, and unique, many historical, religious,
architectural, and artistic unique, rich in humanistic identity, abundant labor resources of
intelligence, industriousness, and compassion. In recent years, the tourism industry has
made innovations, gradually developing material and technical facilities, creating initial
conditions to attract foreign tourists and overseas Vietnamese to visit the country and
introduce the country and its people. People and quintessence of the Vietnamese nation
with international friends; partly meet the needs of domestic people for sightseeing, rest,
and entertainment, initially specific economic results have been obtained. In recent
years, Vietnam's tourism has been on the rise, and the number of international visitors
and domestic tourists is increasing. Vietnam tourism is becoming more and more known
globally, and many domestic destinations are voted as favorite destinations of
international tourists.

II.2 The impact of the covid-19 pandemic on Vietnam's tourism

The Covid-19 epidemic began seriously in early 2020, becoming the world's most
severe pandemic in the past 100 years. Tourism is considered one of the most sensitive
economic sectors to the epidemic. From February 2020, the outbreak of Covid-19 in the
world immediately seriously affected the global tourism industry. Vietnam's tourism
industry also faces unprecedented difficulties. Since March 2020, Vietnam has stopped
welcoming international visitors, leaving only domestic tourism activities, but the
domestic tourism market has also been affected by social distancing measures during the
outbreak.

Looking back at the impact of the Covid-19 epidemic on Vietnam's tourism, it can be
seen that when the epidemic occurred, travel bans and restrictions were applied to all
tourist destinations. Activities in the hotel, motel, restaurant, and transportation sectors
have mostly been postponed due to the nationwide shutdown order. In addition, the
aviation industry was also severely affected when a series of domestic and international
flights to and from Vietnam were canceled. The number of international visitors is only
available in January and February, and from March there are almost no visitors.
Domestic tourists also dropped sharply due to the complicated development of the
epidemic and Vietnam implemented social distancing. Tourism businesses face
difficulties, causing many tourism employees to lose their jobs, and even have no
income... According to the General Statistics Office, international visitors to Vietnam in
March 2020 decreased sharply, reaching nearly 450,000. visitors, down 68.1% over the
same period in 2019 and down 63.8% compared to February. The total number of
visitors in the first quarter of 2020 reached 3.7 million arrivals, down more than 18%
over the same period; Revenue from accommodation and food services in the period
was estimated at 126,200 billion VND, equivalent to 10% of the total revenue of trade
and service activities of the whole country, down 9.6% compared to the first quarter of
 2019; Tourism revenue in the first quarter of 2020 is estimated at 7,800 billion VND,
accounting for 0.6% of the total and down 27.8%. (Huyen, 2022)

Tourism is the industry most affected by the pandemic and one of the most resilient. In
the context that the Covid-19 pandemic has not been controlled in the world,
international tourism activities have not been reopened, and domestic tourism is
gradually recovering and plays a role in maintaining the stability of the whole industry.
If Vietnam can grasp the new tourism trend, Vietnam will have the opportunity to make
a breakthrough, so businesses need to be ready so that as soon as the epidemic is over,
the tourism market will flourish, and there will be suitable products, and services to
visitors.
II.3 Assessing the impact of the COVID-19 pandemic on Vietnam's tourism
II.3.1 Positive impact:
Ending rampant tourism has become a well-known important issue across the country.
The authorities must be curbing people's rampant travel. The decline in tourist arrivals
that ended the influx of tourists, even temporarily, provides an opportunity to look back
and change tourist destinations.
Build an eco-friendly ecosystem. Accordingly, when establishing core criteria for
sustainable tourism, a strong foundation begins with understanding the tenets of five
basic impact categories: waste (including single-use plastics), water, energy, and
greenhouse gases, supporting local communities, and protecting nature. Wastes from
manufacturing facilities carry toxic chemicals to water bodies and lead to serious
environmental impacts.
2.3.2 Negative impact
Before the impact of the Covid-19 pandemic, the world tourism industry in general and
Vietnam, in particular, suffered heavy losses. In 2020, many of the plans of Vietnam's
tourism industry set out are almost impossible to implement, the targets set down
sharply. Specifically, data from the General Statistics Office show that the number of
international visitors in 2020 only reached 3.8 million arrivals, a decrease of 78.7%
compared to 2019, of which more than 96% were international visitors. In the first
quarter of 2020; domestic tourists also decreased by nearly 50%; the Total tourism
revenue of the country lost up to 530 trillion VND (equivalent to 23 billion USD).
(Huyen, 2022)
The tours are postponed and canceled continuously with no specific date. The time of
Lunar New Year is considered an opportunity to help the tourism industry and travel
businesses recover more or less after the difficult period of the first epidemic season.
However, when it was starting to prosper, Vietnam's tourism industry faced new
difficulties when the Covid-19 epidemic broke out again.
Tourism human resources turn to change jobs. Trying to adapt, and stay active is
something all businesses have to do. However, not all businesses are large enough to
 accumulate for a prolonged "hibernation period". A large number of small and medium
enterprises have gradually exhausted themselves after 6-9 months of fighting the Covid-
19 epidemic. According to statistics from the Vietnam National Administration of
Tourism, by the end of 2020, tourism transport businesses (cars) are almost closed
because there are no customers; 95% of travel businesses stop operating, in 10% applied
for revocation of their travel service business license and terminate operations. The
tourism businesses turned to eexportmasks such as Vietnam Tourism Communication
Joint Stock Company; Viet A Tourism Company changed from international travel
business to foreign settlement consultancy; ... appeared more and more. Business
owners are quick to redirect investment during difficult times, wait for the situation to
stabilize, and continue to return to serve tourists, but there are many guides and tour
operators who have had to switch to other activities and other jobs. (Nguyệt, 2022)
At the same time, the number of tourists decreased, leading to a decrease in the revenue
from tourism. In the first 6 months of 2021, tourism revenue is estimated at 4.5 trillion
dongs, accounting for 0.2% of the total and down 51.8% over the same period last year.
Which, some localities saw a sharp decrease in tourism revenue in 6 months compared
to the same period last year, such as Bac Ninh decreased by 61.8%; City. Ho Chi Minh
City decreased by 53.6%; Hai Phong down 46.5%; Hanoi down 44.3%; Da Nang down
43.5%; Quang Ninh down 36.6%; Can Tho decreased by 20.3% (GSO, 2021). (Huyen,
2022)
Along with that, the impact of the Covid-19 pandemic has caused many travel
businesses to close, stop operating, and run out of financial resources. Typically, in
Hanoi, the number of businesses and travel agents that close or stop operating is
estimated at 95%, of which 90% of employees quit; In Da Nang, 90% of tourism
businesses here are closed; In the city. In Ho Chi Minh City, only about half of travel
businesses are still operating in moderation after the first 5 months of 2021 (VTV,
2021).
III. Solutions to the impact of covid 19 on Vietnam's tourism industry

In response to difficulties caused by the Covid-19 epidemic, the Party and Government
have issued many important policies to support the economy, including the tourism
industry. Specifically, the Government issued Resolution No. 42/NQ-CP dated April 9,
2020, on measures to support people and businesses facing difficulties due to the Covid-
19 pandemic. Directive No. 19/CT-TTG dated April 24, 2020, of the Prime Minister on
continuing to implement measures to prevent and control the Covid-19 epidemic in the
new situation. Decree No. 40/2000/ND-CP dated April 6, 2020, detailing the
implementation of several articles of the Law on Public Investment; Decree
41/2020/ND-CP dated April 8, 2020, on extending the deadline for paying tax and land
rent. The Politburo issued Conclusion No. 77-KL/TW on May 29, 2020, on the policy of
overcoming the impact of the Covid-19 pandemic to recover and develop the country's
economy after the Covid-19 epidemic.
The policies to support debt extension, tax, and fee relaxation... are more meaningful for
other business and production industries than for the tourism industry, because when
there are no guests or no tourism activities, the business will travel businesses, hotels...
have to close, stop operating, do not generate guests, have no revenue and thus do not
benefit from the above support policies. In addition, travel businesses also have
difficulty accessing loans with low-interest rates from banks. To develop Vietnam's
tourism industry in the new context, especially during and after the global Covid-19
pandemic, Vietnam's tourism industry should implement the following solutions:
Firstly, sustainably restructure the tourist market, especially promoting the domestic
tourist market so that domestic tourism becomes the main pillar of the industry today. In
the context that it is not possible to increase the number of international visitors when
the epidemic is not under control or the number of international visitors increases slowly
after the pandemic, stabilizing and promoting the growth of the domestic tourist market
is an important solution. This not only meets the tourism needs of the domestic people
but also ensures the sustainability of tourism businesses in the short term.
Second, continue to support tourism businesses during and after the pandemic.
Accordingly, the Government, ministries, and branches need to continue to have
appropriate policies and mechanisms to support tourism businesses, such as tax and
price support; support bank loans with preferential interest rates; supporting the work of
promotion, publicity, and market access; implementing policies to stimulate tourism.
Third, continue to invest in, perfect tourism infrastructure and technical facilities and
develop a variety of tourism products and services. The Covid-19 pandemic has had a
serious impact on the tourism industry, but this is also the time when the tourism
industry rethinks the development process, refurbishes tourism technical facilities, and
perfects the results the tourism industry. infrastructure for tourism to prepare for a new
development phase.
Fourth, strengthen the promotion, promotion, and development of diversified tourism
products and services, forming new tourist product lines (such as medical tourism,
health care, and night tourism services. ...), and improve service quality to meet market
demand. At the same time, digital transformation in tourism development, especially in
management and business, in market research, in marketing and selling tourism
products.
Fifth, to restore and develop tourism human resources, especially high-quality tourism
human resources. The Covid-19 pandemic has affected the work of most workers in the
tourism sector, many tourism workers have left the industry or changing industries.
Therefore, after the pandemic, the first important thing is to take measures to retain,
attract and restore the workforce for the tourism industry. In addition, it is necessary to
strengthen the training and development of tourism human resources, especially high-
quality tourism human resources to supplement the tourism industry and meet the
development needs in the new period.
 Sixth, building a friendly tourism environment, ensuring safety against the Covid-19
epidemic. After the pandemic, the phenomenon of enticing customers, triggering bait,
raising prices, forcing prices, frauds, robbers, etc., may reappear, greatly affecting the
image of Vietnam's tourism. Therefore, it is necessary to focus on propaganda and
awareness-raising for the community, businesses, and the whole society, actively taking
action to build a friendly, safe and hospitable tourism image in Vietnam.
IV. Conclusion
The complicated developments of the COVID-19 pandemic have severely affected the
tourism industry. Retaining employees becomes a big problem for tourism businesses.
The strategic goal of Vietnam's tourism is to become one of the leading countries in
tourism development in Southeast Asia and the top 50 countries with the world's leading
tourism competitiveness. To achieve this goal, it is necessary to create about 5.5 - 6
million jobs, of which about 2 million are direct jobs, an average growth of 12-14% per
year.

To solve the problem of recovery, Vietnam's tourism industry needs a systematic and
holistic view. In the context of the whole tourism industry receiving many positive
signals from the decision to fully open tourism, many difficult problems are gradually
revealed. In particular, the shortage of tourism human resources is a matter of mutual
concern between businesses and management agencies.

References
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