Tourism

The closure of international borders and suspension of direct flights between Vietnam and Australia has negatively affected tourism operators in both countries.

Trade

Internal domestic tourism has gone some way to meet this shortfall in both countries. Vietnam has been a growing market for tourism in Australia, with recreational travel worth A$231 million in 2018 at its peak. It decreased to A$200 million in 2019, and was hit even harder by the pandemic in 2020⁴⁸. More than 123,000 Vietnamese citizens arrived in Australia in 2019⁴⁹.

Australia is an important market for Vietnamese tourism, because Australian tourists stay comparatively longer and are high spending. In 2019, Australia’s recreational travel to Vietnam was valued at A$1.2 billion⁵⁰. More than 317,000 Australians visited Vietnam in 2019, reflecting Vietnam’s popularity among Australian travellers⁵¹.

Vietnam enjoys a positive reputation among Australian travellers. Attracted by its culture, cuisine and natural scenery, growth in Australian tourist numbers prior to the COVID-19 pandemic fueled direct flight plans, with VietJet and Bamboo Airways announcing plans for additional direct flights between Ho Chi Minh City and Australian hubs.

Investment

Located in the world’s strongest tourism region, and the largest global aviation market, Australia offers a secure and stable environment for tourism investors. Vietnamese investors remain interested in Australia’s tourism and tourism infrastructure industry.

Further opportunities

The Governments of Vietnam and Australia want to see the re-opening of international borders and the resumption of international tourism, when it is safe to do so. There is good potential for growth, given the strong people-to-people links between both countries.

There is growth potential within specific areas of Vietnam’s tourism sector — areas like eco-tourism could take advantage of Australian expertise and could continue to develop in a way that protects the country’s natural beauty and enhances socio-economic development.

There are opportunities to increase tourism and hospitality skills training to ensure repeat tourism. Australian vocational education providers are well placed to assist with training and micro-credentialing for Vietnam’s tourism and hospitality sectors.