Tourism to Remain Backbone of Vietnam’s Services Trade: HSBC

Tourism and travel is expected to contribute the most to the growth in services trade of Vietnam, contributing 65% to total export growth of the country in 2016-2020 and 66% in 2021-2030.


               Foreign tourists enjoy sightseeing at the Trang An tourist spot. Photo: Internet

Tourism and travel will likely contribute the most to the growth in services trade of Vietnam, which has become a favorite destination for many travelers thanks to tourist attractions and relatively low costs, HSBC has said in its Global Trade Forecast report.

The sector is expected to contribute 65% to total export growth of the country in 2016-2020 and 66% in 2021-2030, the UK bank said.

Although Vietnamese goods trade has overshadowed services trade, the latter has considerable potential. Trade in services in Vietnam centers on tourism and travel.

The next most important services export after tourism is transportation, which is closely linked to tourism and goods trade. The export of certain services like logistics, freight, and insurance etc. has benefited from the strengthening manufacturing trade.

“The outlook of services trade is expected to continue to improve, yet remain concentrated in these already prominent sectors,” said the report.

“But while tourism and travel is expected to remain the top service export in 2030, a lack of marketing and development will limit its potential to be an even bigger driver of services export growth,” HSBC analysts warned.

According to the Vietnam National Tourism Administration, Vietnam will welcome a record high of 10 million foreign visitors this year, rising 25% from 2015 thanks to strong increases in holidaymakers from East Asia and Western Europe.

The Vietnamese government has maintained the visa waiver for citizens from five Western European countries namely the UK, France, Germany, Italy and Spain.

With the launch of e-visa on February 1 next year, overseas tourist arrivals to Vietnam are expected to reach 11.5 million in 2017 when tourism revenue is projected to hit 460 trillion dong ($20.26 billion).

Tuan Minh / BizLIVE