OMoARcPSD|17035061

University of Economics Ho Chi Minh City

Faculty of International Business-Marketing

FINAL ESSAY

Name of student: Pham Van Tuyen

Student code: 31211020035
Subject: Global strategic management
Subject code: 23D1BUS50319903
Name of instructor: Duong Ngoc Hong
Class: IBC06
(*) ANSWER THE QUESTION
Question 1:
A. What is Global Strategic Management?
Global strategic management is the process of designing a coherent, coordinated,
integrated, and unified strategy that sets the degree to which a firm globalizes its
strategic behaviours in different countries through standardization of offerings,
configuration of activities in different countries, and integration of competitive moves
across countries.
Global strategic management is a combination of four interacting elements. From
there, a unified chain was formed “Global Strategic Management in Action”
1. Global Context: When entering the global market, companies need to have a clear
and thorough understanding of the current global context - globalization issues in such
aspects as markets and competition, societies and cultures, sustainable development
and social responsibility… These aspects are strung and interconnected to create a
global context. Identifying these characteristics is an important first step in "Global
Strategic Management" to determine the advantages that the company has as well as
the disadvantages that the company will face.
2. Global Strategies: After identifying the advantages and disadvantages and
understanding the global context, companies will begin to build and develop a global
strategy in line with the company’s development orientation and the world’s
development trends. The global strategy will include the common goals, the common
mission and the common vision related to the global goals of the whole corporation or
organization expressed through: designing a strategy; assessing country attractiveness;
entry strategies; global strategic alliances; global mergers and acquisitions.
3. Managing Globally: Companies after building a series of activities in "Global
Strategy" are very successful, but maintaining and sustainable development of those
strategies on a global scale is a big business. work is not easy. Therefore, the third step
"Global management" is really important and related to the operating system of the
company's organizations and departments on a global scale: Designing a global
organization; Marketing; Innovation; Finance; Human Resources Management. Do
these organizations and departments operate effectively and smoothly? If an
organization has a strong strategy, but poorly managed operations will not bring long-
term growth.
4. Current and future trends in globalization and Global strategic management in
Action: "Managing globally" directly impacts and creates current and future trends in
globalization. Accordingly, these trends are objective conditions that form the "Global
context" at different stages. Therefore, global companies need to have ambition, vision
and development direction at different stages: Brand building strategy =>
Diversification strategy => Internationalization strategy => Global brand strategy =>
Networking strategy.
The diagram below shows the process in "Global Strategic Management".

What does strategic management mean for multinational-corporations (MNCs)?

Strategic management is the management of a company’s resources to successfully
achieve its goals and objectives. It’s an action plan to ensure performance targets are
met, and the business continues to grow. Strategic management provides overall
direction by developing plans and policies designed to achieve objectives and then
allocating resources to implement the plans. Eventually, strategic management is for
organizations to gain a competitive edge over their competitors.
Strategic management’s key task in multinational corporations is to build up, nurture
and use this potential (resources, skills, expertise…) to gain competitive edges and
success across different countries. Multinational corporations encounter different
competition situations and varying environmental and resource conditions in different
countries. This means that countries own diverse resources and also encounter
different environments in each one. Obviously, competitive edge is often not enjoyed
world-wide, but is each specific country or specific region. Therefore, it’s essential for
multinational corporations in strategic management to build up region-specific
advantages by developing and implementing regional strategies.
In organization, strategic management can be the prime factor to delivering a solid
bottom line in a marketplace that continual disruption happens as a result of
technological innovation, competitive pressure… Therefore, corporation executives
who need to have a strong grasp of their own organization’s products or services and
an in-depth view of what their main competitors will do next, can forecast and plan
timely business decisions to avoid losing their market share. For multinational
corporations, developing a strategic vision requires an understanding of global trends,
the competitive landscape and stakeholder expectations. Once an enterprise knows
what its mission is, the right resources can be allocated to achieve that plan. Through
strategic decision-making and commitment to strategic planning, organizations can
strengthen their long-term competitive position. Apart from financial gains, strategic
management can also boost workplace motivation. Setting effective goals for
employees and involving them in organizational objectives can improve overall
performance. Studies show dramatic increase in both employee and business
performance when goals are aligned.
Summary, if a multinational enterprise wants to thrive at a global level, strategic
management is indispensable in its organization. Strategic management is like a map
drawn by businesses themselves for their organizations, so strategic management helps
multinational businesses have the right direction, long-term goals and focus on them to
bring benefits both inside and outside the organization, and bring about long-term
sustainable development.
B. Please give your opinion about this statement “Small-scale enterprises do not need
strategic management”.
This view “Small-scale enterprises do not need strategic management” is not entirely
correct and the following analysis will make that clear:
Smaller companies are not simply the smaller versions of larger corporations, but they
behave in the market very differently. The majority of research acknowledges a
positive relationship between strategic orientation and organizational success.
Nevertheless, due to insufficiency of market knowledge, capital and a limited access to
research and personal intuitive management style, small-scale enterprises commonly
ignore strategic orientation. Though most of the practical researches on strategic
management are applied to large corporations, the relevance of strategy in small
enterprises does not diminish in comparison with bigger entities and small enterprises
can even display an explicit strategic competitive behavior.
In reality, small-scale enterprises cannot virtually compete with larger firms in terms
of investment in research and development, economies of scale or substantial
promotional budget. On the other hand, given all the evidence, it is well-recognised
that strategic planning is rare or non-existent in many small-scale enterprises and
small-scale enterprises’ tendency orientate towards short-term operational rather than
long-term strategic management issues, and decision-making tends to be reactive
rather than proactive. In small-scale enterprises that have the plans are frequently
accidental and intuitive than formally written and provide little basis upon which
business performance can be measured or analyses. Therefore, given the advantages of
flexibility within a small entity, the strategic concept has to be more flexible and
adaptable for them.
The following models will better explain why small businesses often do not have
strategic management or have but are not perfect.
Model 1 below “Extant approach to explain lack or low levels of strategic planning in
small-scale enterprises”. This model shows that strategic planning is hampered by
various to planning which result in the lack or low levels of strategic planning
observed in the majority of small-scale enterprises. This model is based on two
fundamental concerns: first, the level of analysis conducted in relation to the problem
is at the level of the firm (not the level of individual); second, the approach implicitly
assumes a profit or growth maximizing objective for small and medium enterprises:
Model 2 below “Extant approach to explain lack or low levels of strategic planning in
SMEs”. This model presents the alternative approach proposed in this article which
addresses these concerns; the level of analysis is conducted at the level of the
individual (owner manager), and the motivations of owner-managers for being in
business are taken as the starting point for investigations into the strategic planning
behaviors of SMEs (rather than a priority of profit or growth maximization goal in
model 1). The motivations depend on the owner-managers’ factors through: education,
gender, ethnicity, family commitments, personal aspirations or a multitude of other
psychological, sociological, demographic and environment considerations.

However, there are many globally recoginised company started out small. A shared
key to success of those organizations laid in their ability to see the goal and effectively
plan their actions towards it. Thus, the first things for key long-term success are to set
up a marked reason for existence (Mission), a big dream driving company’s operations
(Vision) and fundamental principles that would guide it’s daily decision-making
(Values). Thus, it can be seen that small businesses that plan for "strategic
management" are often more difficultly to fail or even achieve great success on a
global scale.
Conclusion, it's not because small businesses "do not need", their problem is "lack"
and “not qualified” to need "strategic management". However, in general, large or
small-scale enterprises, if they want to develop and expand their brand, along with
sustainable and long-term development, cannot lack strategic management. It has been
a matter of debates and extensive discussions whether strategic management is
important and necessary within enterprises. It is hard to argue that every manager who
is aiming at success has to be led by the strategic plan with clear goals.
Question 2:
A. Distinguish between low-cost strategy and product differentiation strategy (in terms
of strategic goals, visions and missions).
 Low-cost strategy Differentiation strategy
Goal -Focus on offering products or -Aim to offer unique and superior
services at a lower cost compared products or services that are
to competitors in the market. perceived as valuable by customers.
-This strategy allows companies -This strategy allows companies to
attract price - sensitive customers charge a premium price and
and gain a larger market share. achieve higher profit margins.
-To achieve cost leadership and -To create brand loyalty and
maximize profits through maintain a competitive edge.
economies of scale.
Vision A company utilize the low-cost A company utilize the
strategy that desire to become thedifferentiation strategy that desire
lowest-cost producer (or supplier)to become the leader in innovation,
in the industry or providing create high-quality and
affordable and accessible productsdifferentiated products or services
to a wide range of customers. that cater to the unique needs of
customers.
Mission Continually provide customers Promote innovation, creativity, and
with quality goods and services at customer-centricity to create
the lowest possible or affordable products or services that
prices, while maintaining a differentiate them from competitors
strong bottom line. in the market.
B. Provide two examples (low-cost strategy and product differentiation strategy) to
support your answer.
Example 1 (low-cost strategy)
Costco is one of the world's leading wholesalers and retailers. With different steps, this
corporation has increasingly positioned its prestige and potential in the fierce market.
Currently, everywhere in the world, Costco products have appeared in many
consumers’ daily lives with low prices but high quality.
(Source: Vietnam Business Insider)
Business model’s Costco is using a membership-only warehouse club. In this model,
consumers pay a membership fee to access the low-cost product available at Costco
stores. Non-members may accompany members, but only members are allowed to
purchase in these stores. Nevertheless, non-members can use Costco Cash Cards to
purchase at company’ stores. Costco members also enjoy "bargain" discounts. At the
same time, Costco also continuously deploys attractive promotions and coupons every
week. Costco makes its profit primarily by charging membership fees.
High quality, low price is the core value that Costco aims at. Costco selects and offers
products at exceptionally low prices. Costco prices products 14-15% more than cost.
The average rate of return is only 2%. For goods purchased in bulk or limited versions,
the price is even more favorable. As it allows Costco to list lower prices as well as
increase the average order scale.
In order to keep prices as low as possible, Costco always buys products in bulk and
can store them for a long time so operating costs are low. Many corporations use
advertising campaigns to attract customers and expand market share. Costco is the
opposite, instead of investing in advertising, Costco optimizes it and invests in special
promotions and deep discounts.
By using a low-cost strategy to achieve low product prices. Costco has attracted a
large number of customers and reaped large profits from it.
Example 2 (differentiation strategy):
Emirates is the national airline from the United Arab Emirates, headquartered in
Dubai. The airline continuously operates more than 3,600 flights per week, to about
150 major cities in more than 80 different countries. While many airlines are chasing
the price race, see fares as a competitive strength such as Wizz Air or Ryan Air.
Emirates is pioneering changes when building a global differentiation strategy.
However, the real difference is not in the number of flights or the places it stops, so
what are the differences that make Emirates competitive advantages?
The low-cost airline market makes images of cramped seats, low standard meals
appear a lot currently. However, passengers will not be able to see that image on
Emirates flights. Because of the special competitive advantage in the airline's global
differentiation strategy, is to take care of each and every passenger during their flight:
-The food is high quality and shows the spirit and culinary culture of the destination.
-Enjoy great in-flight entertainment with over 4,500 movie options.
-Beverages and free Wi-Fi are provided throughout the cruise.
Emirates won Best First-Class Airline in 2020.

(Source: Emirates)
Emirates possesses superior flight technology compared to many other airlines.
Emirates is one of the famous airlines with customer-centricity, so they always invest,
apply and pursue the most advanced aircraft technologies in the world. Not only
stopping with the passengers’ experience in the cabin, Emirates also boldly applies
many technologies to support aircraft and crew. For instance, fully automatic aircraft
navigation technology.
Emirates also makes a big difference thanks to its unique and extremely bold
advertising strategies. Typically, recently in 2022, the moment there was a “1-0-2”
moment when the hostess stood on top of the tallest tower in the world, a giant plane
flew close behind. The girl stood on top of the world's tallest Burj Khalifa tower
(nearly 830m) in Dubai and joked: "I'm still here". The message that the flight
attendant and the pilot of the A380 send to the world, is "Fly on the Emirates A380 to
attend the Dubai Expo 2020, the world's largest exhibition". Dubai Expo 2020 takes
place from October 1, 2021 - March 31, 2022. 192 countries exhibit in the fair the
most advanced services and technologies here. The event shocked netizens on social
platforms along with creating impressive brand effects and strong brand promotion.

(Source: Emirates)
Question 3:
A.
1. The situation of Vietnam's tourism industry before the Covid-19 pandemic.
a. Vietnam tourism compares with the tourism of some countries in the world and
in Southeast Asia.
Top 10 leading markets in terms of international arrivals are shown below:
According to UNWTO data, Turkey had a fairly high growth rate of 11.9%. Followed
by Mexico (+9.0%), Italy (+4.8%). The US fell 0.6%. Spain and Germany increased
slightly. Thailand increased only 4.2% compared to 7.3% in 2018.
-Vietnam's tourism surpassed Indonesia to rank 4th in Southeast Asia.
In 2019, Vietnam welcomed over 18 million international visitors, surpassing
Indonesia (16.1 million arrivals), rising to the fourth position in Southeast Asia, after
Thailand (39.8 million arrivals), Malaysia (26.1 million arrivals) and had come very
close to Singapore (19.1 million arrivals). Growth in international arrivals to Vietnam
(+16.2%) was significantly higher than that of regional countries such as Thailand
(+4.2%), Indonesia (+1, 9%), Singapore (3.2%).
The data of international tourists to ASEAN countries are as follows:
Source of international tourist arrivals of some ASEAN countries in 2019 as below:
According to the above data, it can be seen that:
- China was the largest source market in the region, the two countries that received the
most Chinese tourists are Thailand and Vietnam in 2019.
- Thailand led in the number of tourists coming from large, quality source markets
such as Japan, the US, Russia, the UK, France, and Germany.
- Malaysia welcomed a large number of tourists from Singapore, China and Thailand.
- Vietnam led ASEAN in terms of international tourism arrivals from the markets of
Korea and Taiwan; Indonesia and Singapore took the lead in welcoming tourists from
the Australian market.
b. Vietnam tourism in 2019.
-International tourist arrivals to Vietnam reached a record of over 18 million
arrivals.
(The graph shows the number and growth of international tourists to Vietnam in 2019)
From the chart, it can be seen that the main number of international tourists to Vietnam
is: The top four positions belong to the Northeast Asian markets. China ranked first
with 5.8 million arrivals (+16.9%). Followed by Korea with 4.3 million arrivals
(+23.1%), Japan with 952 thousand arrivals (+15.5%), Taiwan with 927 thousand
arrivals (+29.8%).

(The chart shows the structure of international tourists by region in 2019.)

In terms of visitor structure by region, Asian markets accounted for the majority
(79.9%), of which Northeast Asia accounted for 66.8%, Southeast Asia accounted for
11.3%, the rest of Asia accounted for 1.8%, showing the importance of proximity
markets in Asia. European markets accounted for 12%, America accounted for 5.4%,
Australia accounted for 2.4%.
The large proportion of the Asian market is also a common feature of other countries
in the region: Asian visitors to Malaysia account for 90%, of which Singapore visitors
account for 40%. Asian visitors to Thailand accounted for 75%, of which Chinese
visitors accounted for 28%.

(The chart shows the structure of international tourists by means of transport in 2019.)
In 2019, international arrivals by air accounted for 79.8%, by road 18.7%, and by sea
1.5%. Noticeably, the proportion of passengers traveling by air to Vietnam was
significantly higher than the world average. According to UNWTO, in 2018, on a
global scale, passengers traveled by air accounted for 58%, by road 38% and by sea
accounted for 4%. 2019 was the year Vietnam's tourism industry which was very
developed, so the aviation industry also inherited strongly.
-Domestic tourists reached 85 million arrivals.
-The tourism industry contributes 9.2% of GDP to the Vietnamese economy.

Total revenue from tourists reached 755 trillion VND (equivalent to 32.8 billion USD.
Direct contribution of tourism: 9.2% of GDP.
2. How does the COVID-19 pandemic affect the tourism industry in Vietnam
(transportation, hotels, services…)?
The Covid-19 epidemic began seriously in early 2020, becoming the world's pandemic
with the most serious severity 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 faced unprecedented difficulties. Since March 2020,
Vietnam had continued to welcome international visitors, with only domestic tourism
remaining, but the domestic tourism market had also been affected by social distancing
measures during the pandemic.
International tourist arrivals drop sharply in the period of the Covid-19
pandemic:
In 2020, many of the plans of Vietnam's tourism industry set out were almost
impossible to implement, the targets set down sharply. Specifically, data from the
General Statistics Office shown that the number of international visitors in 2020 only
reached 3.8 million arrivals, a decrease of 78.7% compared to 2019, more than 96%
were international tourists. The first quarter of 2020; domestic tourists also decreased
by nearly 50%; Total tourism revenue of the country lost up to 530 trillion VND
(equivalent to 23 billion USD). According to statistics, in the second quarter of 2020,
Vietnam had not opened up to international tourism, so the number of tourists was
mainly foreign experts and technical workers working in projects in Vietnam.
International tourists to Vietnam in December 2020 were estimated at 16.3 thousand
arrivals, and down 99% over the same period in 2019.
The statistics table of the number of international tourists in some countries to
Vietnam in 2020 compared to 2019 is as shown below:
The number of The number of The decrease in
international international 2020 compared to
tourists in 2019 tourists in 2020 2019(%)
(thousand) (thousand)
China 5806 956 83,5
South Korea 4291 841 80,4
Japan 952 205,6 78,4
United Kingdom 315 82,2 73,9
France 288 75,2 73,8
The number of international tourist arrivals was sharply reduced in 2020 due to the
heavy effects of the Covid pandemic. In 2020, visitors from Asia reached 2,813.6
thousand arrivals, accounting for 73.3% of the total number of international visitors to
our country, down 80.4% compared to 2019 and tourists from Europe this year were
estimated at 671.9 thousand arrivals, down 69% compared to 2019.
Services:
Revenue from accommodation and catering services in 2020 is estimated at 510.4
trillion VND, accounting for 10.1% of the total and down 13% compared to the
previous year (increasing by 9.8% in 2019). Revenue from accommodation and food
services this year compared to the previous year of some localities: Khanh Hoa
decreased by 56.4%; Quang Nam decreased by 50.6%; Da Nang decreased by 35.8%;
Ho Chi Minh City decreased by 33.8%; Ba Ria-Vung Tau decreased by 27.4%; Quang
Binh decreased by 26.5%; Can Tho decreased by 19.2%; Nghe An decreased by
16.8%; Hanoi decreased by 14.8%; Thanh Hoa decreased by 9.1%; Hai Phong
decreased by 4.3%. This leads to many restaurants and hotels closing, sales
plummeting or even no revenue.
The decrease in the number of tourists leads to a decrease in revenue from tourism
service. In the first 6 months of 2021, tourism revenue was estimated at 4.5 trillion
dong, accounting for 0.2% of the total and down 51.8% over the same period last year.
In which, some localities saw a sharp decrease in tourism revenue in 6 months
compared to the same period in 2020, 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 down 20.3%.
During the period heavily affected by the Covid pandemic, the Vietnam Tourism
Association launched many programs to restore the tourism industry, typically the
introduction of stimulus policies to ensure the safety of tourists. customers, reduce
prices but not reduce service quality or keep prices but increase services. Demand-
stimulating products focused on novelty, uniqueness, low prices and more diverse
promotions... However, the situation was still not positive due to the gigantic pressure
from the pandemic.
Transportation:
According to statistics, in the first 6 months of 2021, international visitors reached
88.2 thousand arrivals, down 97.6% over the same period in 2020. In which, arrivals
by aircraft reached 55.7 thousand arrivals, accounting for 63.2% of international
arrivals to Vietnam, down 98.2%; by road reached 32.3 thousand turns of people,
accounting for 36.6% and decreasing by 94.2%; by sea reached 216 arrivals,
accounting for 0.2% and decreasing by 99.9%.
In particular, the aviation industry was hardest hit when a series of domestic and
international flights to and from Vietnam were canceled due to the impact of the
epidemic.
In the international market, when the COVID-19 pandemic broke out, the world
economy had to suffer great damage, but the first industry that suffered the most was
the air transport industry. According to the report of the International Civil Aviation
Organization (ICAO) on the situation of aviation activities in 2020, the number of
international and domestic passengers decreased by 1.38 billion and 1.32 billion
respectively, down 74 % and 50% compared to 2019 and reduce revenue by 250
billion and 120 billion USD respectively. From the end of March 2020, regular
passenger activities were completely halted, international routes were almost
paralyzed, except for a small number of cargo flights, bringing repatriated compatriots
and transport experts to work in Vietnam.
In the domestic market, 2020 is an unprecedentedly difficult period, but 2021 will be a
more difficult year when successive outbreaks of epidemics cause a decrease in travel
demand, especially on special occasions. The peak of the aviation industry is the Lunar
New Year and summer, causing a sharp drop in airline revenue. The most serious thing
was the outbreak from the end of April 2021 that makes airlines. It was not possible to
fully restore domestic passenger transport activities. In 2020, the total aviation market
in Vietnam decreased by nearly 56% compared to 2019.

(Statistics show the negative impact of the Covid-19 pandemic on the aviation
industry.)
In 2020, the overdue debt of Vietnam Airlines (the national airline) amounted to 6,240
billion VND and was in danger of bankruptcy without support packages from the
government. Currently, after the pandemic, the company is still facing many
difficulties due to the impact of the pandemic still remaining. Although private airlines
such as VietJet Air and Bamboo Airways had tried to optimize their operations and
maintained production and business through the transfer of assets in 2020, the
operations of the two airlines still existed. This private company continued to face
difficulties in 2021, airlines used all financial resources to support air transport
services. It was estimated that VietJet Air had a shortage of about 10,000 billion VND
to support production and business activities.
Due to the specific nature of the aviation industry, airlines still had to pay huge fixed
costs such as aircraft rental fees, maintenance fees, parking fees and other operating
expenses. This made airlines continue to face the risk of cash depletion and increasing
overdue debts. In addition to the direct financial and cash flow impacts, airlines also
faced many problems related to the production and business environment in the short
and long-term such as excess aircraft resources, competitive compete on ticket prices,
even selling below cost for cash flow. These were all consequences of the impact of
the COVID-19 epidemic on Vietnam's aviation industry.
Losing jobs:
The impact of the Covid-19 pandemic had caused many travel businesses to close, stop
operating, and run out of financial resources. For example: In Hanoi, the number of
businesses and travel agents closing or shutting down was estimated at 95%, of which
90% of employees quit; In Da Nang, 90% of tourism businesses here were closed; In
the city, only about half of travel businesses were still operating in moderation after
the first 5 months of 2021.
At the same time, many workers in the tourism industry had had to quit their jobs or
moved to new jobs. A survey by the Tourism Advisory Council showed that, among
the travel and tourism businesses participating in the survey, there were 18% of
enterprises that had laid off all their employees; 48% of enterprises let 50%-80% of
employees quit and 75% of enterprises had other forms of financial support for the
number of employees who lost their jobs. From the end of 2020 to May 2021, an
estimated 40% of jobs in the tourism industry was lost compared to the same period in
2019 - equivalent to about 800,000 jobs in the industry from hotels and travel
companies. Travel, restaurant... The rest of the workers in the industry's income
decreased, on average 40% lower than before the Covid-19 pandemic occurred.
3. The recovery of the tourism industry after the pandemic.
According to the General Statistics Office, international visitors to Vietnam in August
2022 reached 486.4 thousand arrivals, up 38% over the previous month and 52.3 times
higher than the same period last year because Vietnam has opened its “doors” to
welcome international tourists, international flight routes are restored.
(The infographic shows the number of tourists from the continents to Vietnam in the
first 6 months of 2022.)

(The infographic shows the number of tourists from the continents to Vietnam in the
first 8 months of 2022.)
As can be seen from 2 infographics, the number of tourists increased significantly
from the regions after only 2 months. Tourists from Asia were the largest with nearly
997,000 arrivals, accounting for 69.18% of total international visitors to Vietnam in
the first eight months of 2022.

(The chart above shows the top 10 countries with the highest number of tourists to
Vietnam in 2022.)
The country in the region with the most tourists to Vietnam was South Korea with
nearly 370,000 arrivals, an increase of 17.61 times over the same period last year. This
was also the country with the largest number of tourists to Vietnam in the world.
The US ranked second with more than 139,000 visitors, up 59.5 times over the same
period last year. The country with the third highest number of tourists to Vietnam was
Cambodia with 82,000 visitors, an increase of 260 times over the same period in 2021.
Japan and Singapore were also two countries with a large number of tourists to
Vietnam with the number of visitors being 71,000 and 67,000 respectively.
In particular, China dropped to 6th place compared to 2019 when China was the
largest source of tourists to Vietnam. However, Korea took first place after the
pandemic.
The reason for this: China is the country that started the pandemic, so the epidemic
situation in this country has so far been very complicated in many parts of China. The
travel ban is tightened. In areas where the ban is removed and has freedom of
movement, people tighten their spending instead of spending on tourism, they spend
on other essential needs.

(The chart shows the number of international tourists to Vietnam by means of

transport in the first 8 months of 2022)
Generally, in the first 8 months of 2022, international visitors to our country reached
1.44 million arrivals, 13.7 times higher than the same period last year but still down
87.3% compared to the same period in 2019, a year that has not happened yet. Covid-
19 pandemic. In which, visitors arriving by air reached 1.27 million arrivals,
accounting for 88.2% of international arrivals to Vietnam and 18.5 times higher than
the same period in 2021. International visitors arriving by road reached 170,000
arrivals, accounting for 11.8% and 4.7 times higher. Visitors arriving by sea reached
387 arrivals, accounting for 0.03% and increasing by 40.7%.
This is a positive sign for the transport industry, especially the aviation industry,
which has suffered heavy losses during the Covid-19 pandemic.
(The chart above shows the growth in service revenue and revenue from
accommodation, catering and travel services in the 9 months of 2018-2022.)
Revenue from accommodation and catering services in the first nine months of 2022
was estimated at 430.9 trillion VND, up 54.7% over the same period last year; tourism
revenue was estimated at 18.2 trillion VND, up 294.9%. With an impressive increase
of 9 months of 2022 compared to the same period in 2021, it could be seen that these
two service industries have had a positive recovery when economic, cultural and social
activities have returned to their normal state, people's demand for entertainment and
tourism increases.
B.

The main strategies that the tourism industry in Vietnam apply to survive
and recover after the pandemic to adapt and recover after the pandemic.
First, Vietnam should prioritize stabilizing and promoting the domestic tourist
market’s growth, continuing to support tourism businesses during and after the
pandemic. In the context that it is not possible to increase the number of international
visitors when the pandemic is not under control or amount of international tourists
increases slowly after the pandemic; stabilizing and promoting the growth of the
domestic tourist market is an important solution. This not only meets domestic
residents’s tourism needs, but also ensures the sustainability of tourism businesses in
the short term. Beside that, Vietnam also needs to ensure safety in tourism activities,
the tourism industry's top priority in ensuring safe conditions for tourist destinations,
safety for tourists. (Domestic market)
Second, Vietnam needs to focus on boosting demand-stimulating activities and
recovering domestic tourism. Promoting domestic tourism development is the basic
foundation for sustainable tourism development. (Especially in domestic market)
Next, it is necessary to continue to invest, perfect the tourism infrastructure and
technical facilities, develop a variety of tourism products and services. Tourism
enterprises should renovate tourism technical and material facilities, complete tourism
infrastructure in order to prepare for a new stage of development. At the same time,
the tourism industry needs to strengthen research and development of diversified
tourism products and services, form new tourism product lines (medical tourism,
healthcare, night tourism services, etc.), improve service quality to meet market
demand and attract both domestic and international tourists. (Apply in both domestic
market and international market)
In addition, investment is needed to restore and develop tourism human resources,
especially high-quality tourism human resources. During the Covid-19 pandemic,
many Vietnamese tourism workers had lost their jobs, left the industry, and moved to
another industry. 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. (It’s important for
domestic market)
There is also a need to strengthen industry coordination and linkages. Strengthen
coordination with the aviation industry in promotion, publicity, connection and
development of the tourism market; coordinate with customs and tax authorities in
creating favorable conditions for international tourists to enter and exit Vietnam and
purchase duty-free goods; coordinate with the agricultural industry in providing food
inputs for restaurants and catering businesses, ensuring food safety for tourists;
coordinate with the police to ensure security and order at tourist sites, to prevent
crimes,... (Domestic market and international market)
Finally, enhance tourism promotion and promotion after the pandemic. Vietnam needs
to restart tourism promotion programs and stimulate tourism demand in some
traditional and close markets, such as the Northeast Asian market (China, Korea,
Japan), Southeast Asia. (Thailand, Malaysia...); at the same time, continue to research,
approach and expand potential and distant markets, such as Western Europe, North
America, Russia, Australia, New Zealand... (International market)
After the pandemic, the psychology, trends, and needs of tourists will have certainly
changes. Therefore, tourism promotion and advertising must not only be actively
implemented but also change and adjust methods and organization methods
accordingly. Besides the traditional methods of promotion and publicity, such as
organizing international events, fairs, conferences, seminars, promoting through mass
media, promoting through airlines, international travel agents... It is also necessary to
apply modern methods: digital technology, conduct digital marketing, advertise online,
and broadcast on famous TV channels such as CNN, BBC, National Geographic,
Discovery… and set up representative offices in a number of countries and key
markets. (Both domestic market and international market)
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