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Student
Tutor
Course
Date
Reasons for Increased Number of Foreign Visitors to Vietnam
Abstract
This paper discusses the reasons for the increased number of visitors traveling to Vietnam.
Vietnam experiences an increased number of tourists annually mostly from Asia, Europe and
parts of America. Tourists travel with three main aims: to visit friends, to invest in the market
and to have the vacation. 2012 data on the number of visitors traveling to Vietnam per country is
provided and the foreign direct investments made.
The data reveals that tourists from
economically developed countries lead in making foreign direct investments in terms of flow-in
and stock-in. the increased trends of foreign invests are attributed to the political and social
stability created by the Vietnam government. The country is suggested to have a competitive
market investment globally.
Introduction
Tourism is one of the most valued industries in the world. Countries with improved
tourist destinations register a high number of tourists yearly, thus improving their development
economically. The attraction of tourists to various destinations is based on the improved factors
such as tourism capacity and attraction facilities and resources. Tourists visit foreign countries
with varying reasons such as for business purposes and visiting friends and relatives. The overall
outcome of tourism activities is economic development in the countries they visit. Significantly,
Asian countries experience a high rate of inward tourism movements due to the quality services
offered. For the past decades, Vietnam continues to experience a high rate of visitors from
foreign countries.
The growth in the population of foreign visitors is associated with the decision
made by Vietnam government to improve a plan for the market economy. This paper discusses
the reasons that influence the increased population of foreign visitors heading to Vietnam.
Despite being the history of war and sufferings in the country, a huge number of
foreigners view Vietnam as the best destination for a vacation. Beautiful attraction features such
as rainforests, beaches, and other geographical features create more attraction sites for visitors
leading their way to Vietnam.
Remarkably, the tourism sector experiences a positive trend from
the number of visitors and the citizens employed in the industry. Most tourists visiting Vietnam
come from Asia, Europe and American continents due to visa exemption to some countries.
Tourists heading to Vietnam have varying reasons ranging from commercial to social purposes.
According to Vietnam General Department of Statistics, approximately 1.26 million tourists visit
Vietnam for income generation purposes while 1.27 million foreigners indent to visit family
relatives (Vietnam-Evisa.Org 1).
Literature review
Increasing trends in the flow of foreign visitors to Vietnam are notably high in the recent
years. These tourists enter the country for individual reasons that vary amongst them. Reasons
for high inward travels to Vietnam range from recreation, commercial relationships, and creation
of new friendship groups (Truong 9). Uniqueness in the qualities of any region enhances the
chances of visitors to tour the region due to improved infrastructure and service delivery.
Consequently, further research suggests that involving locals of a particular region in the
conservation of the environment and cultural values increase the chances of creating tourist
attraction sites (Truong 10).
Thus, improved standards in the destinations, products and service
delivery from the locals increase the possibility of tourists returning the places.
Several studies indicate that tourism environment, availability of market and efficient
communication strategies influence the traveling decisions of foreign visitors (Hoang 87).
Foreign visitors feel motivated if their availability is valued in any foreign country. Such value is
based on the contribution of the purchases they make and the usefulness they have in terms of
service provision.
Moreover, an attraction of visitors is suggestively improved by the
environmental factors in the place they plan to tour. Marketing environment and strategies
increase the movement of visitors in a country with the aim making profitable investments.
Accordingly, improved social networks enhance awareness among the visitors on the real
environment of the place they are to visit. This is in accordance with studies by various scholars
whose ideology is that foreign visitors inspire their colleagues to visit certain destinations only if
they get in love with the environment.
Accordingly, theoretical foundations prove the most relevant factors influencing
Vietnam's choice by most foreign visitors. Specifically, these factors are based on the
developments made for tourist attractions and the conditions for market development. The
business environment is improved by the types and amount of resources available in a country
that attract foreign investments government. Government policies greatly impact on the inward
flow of foreigners to a particular destination. According to research studies, Vietnam's cases of
increased inward visitors suggest some improved policies in the tourism sector (Tran,
Thirumaran, Duong & Nguyen 289). Accordingly, the major review made by Vietnam
government on the visa policies led to increase in the arrival of foreign visitors with an aim of
completing crucial projects.
Subsequently, several Asian countries such as Japan, Singapore,
Taiwan and South Korea, benefit from free visa entry to Vietnam. Suggestively, these visa aim at
increasing the flow of visitor due to the availability of potential development sites in the country.
Argument and hypothesis
Research question
The research question for this paper is why there is an increasing number of visitors coming to
Vietnam. This question will relevantly provide details on reasons behind the increased
population of foreign visitors moving to Vietnam.
Hypothesis
The hypothesis in this paper is that there is an increasing number of foreign visitors heading to
Vietnam from Asia and Europe. Another hypothesis is that countries with more number of
tourists invest in Vietnam compared to those with the low number of foreign visitors.
Argument
Vietnam possesses an attractive investment atmosphere which attributes to the improved
economic relations with the external countries. The country strives hard to appeal itself to more
foreign investments by reviewing most of the marketing strategies and investment atmosphere.
Essentially, the rising foreign direct investments in Vietnam are attributed to measures and
standards of raising the country’s competitiveness in the world market.
The major reason for Vietnam's increased foreign direct investments is stabilization of
political and social environment. Despite the difficulties faced by the country, it strives to be
among the vast dynamic economies in the world. Additionally, geographical location favors the
country since it is closer to the world's vibrant economies in terms of financial power.
Accordingly, the country's economy is favored by its integration in World Trade Organization
and the availability of trade agreements. These allow the country to partner with countries within
its region, which allows it to receive inward investments and increased the flow of stocks within
the internal markets.
Moreover, Vietnam government’s commitment to improving the business environment to
foreign investors is linked to the foreign direct investments. The legal frameworks set up by the
government allow foreigners within Asia and some parts of Europe to access visa entry to the
country (Malone, Heng, Tuyet & Kyaw 1). As a result, foreign investors are able to pump money
into the economy of Vietnam and different stocks for economic investments. Thus, the
competitive strategies of the country continue to realize success in the outside market.
Furthermore, the government's commitment to ensuring legal rights of investors are stabilized
has attributed to the success in enhancing the environment for foreign investments.
Statistical data
The data in the table below provides a summary of data on the details of foreign investments
made in 2012. It represents the number of visitors, foreign direct investment flow in and foreign
direct investment stock in. The data provided is for the countries situated in Asia, Europe and
part of the American continent.
Nationalities
Visitors201
2
FDI_Flow_i
n
FDI_Stock_i
n
Japan 576.4 2 863 8 393
Taiwan 409.4 1 361 0
Singapore 196.2 992 2 642
Korea 700.9 658 0
China 1428.7 190 1 604
Malaysia 299 122 2 768
Thailand 225.9 102 1 850
Germany 106.6 97 0
United States 443.8 82 1 064
Russia 174.3 73 0
Netherlands 45.9 61 431
France 219.7 56 745
Italy 31.3 33 0
Indonesia 60.9 30 0
United 170.3 22 0
Kingdom
Belgium 18.9 15 4
Norway 19.9 14 106
Canada 113.6 11 0
Philippine 99.2 11 0
Australia 289.8 6 0
Denmark 28 6 159
Switzerland 28.7 2 482
Sweden 35.7 1 0
Spain 31.3 1 0
Cambodia 331.9 0 0
Laos 150.7 0 0
New Zealand 26.6 0 0
A plot of the foreign visitors coming to Vietnam from different countries is indicated below.
0
200
400
600
800
1000
1200
1400
1600
Visitors2012
A scatter plot representation of the number of visitors and the foreign direct investment flow in
made is shown below.
02004006008001000120014001600
0
500
1000
1500
2000
2500
3000
3500
FDI_Flow_in
FDI_Flow_in
Linear(FDI_Flow_in)
A scatter plot representation of the number of visitors in 2012 and the foreign direct investment
stock-in is shown in the graph below.
02004006008001000120014001600
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
FDI_Stock_in
FDI_Stock_in
Linear(FDI_Stock_in)
Discussion
From the data above, it is clear that most foreign direct investors coming to Vietnam
originate from Asian countries such as China and Japan. The results are consistent with the
hypotheses and the discussion in the argument section. Most of these countries benefit from the
free visa entry into Vietnam to make the investments.
Accordingly, countries with a bigger
number of tourists are accompanied by more foreign direct investments flow-in and stock-in.
thus, from the data; it can be argued that tourists travel to Vietnam with the wide target of
making investments from the available market. The scatter plot representation of the data clearly
indicates the concentration of foreign direct investments flow-in and stock in the region of below
500 visitors.
The relationship explains the effects of tourism on the overall economy of Vietnam
basing on the economic investments made by foreign visitors. Additionally, the data and figure
plotted indicate that Vietnam’s market is highly developed by foreign visitors from well-
established countries such as China, Japan, and United States. However, a few tourists who visit
the country aim at other purposes rather than making investments. Most of the tourists, who fail
to invest in Vietnam, travel to either meet relatives or have a holiday vacation.
Conclusion
In conclusion, the paper aimed at examining the reasons for the increased number of
foreign investors traveling to Vietnam basing on 2012 data. From the data, it was clearly shown
that Vietnam experiences a high number of foreign investors from Asia and Europe. The
discussion and literature review is in agreement with the hypotheses raised in the paper.
Most
tourists who travel to Vietnam from Asia are advantaged by the free visa entry to the country.
The strategy was used by the Vietnamese government to increase the number of tourists visiting
the country. Moreover, the political and social stability created by the government ensures
security for the foreigners and their investments thus adding up to more stock-in made in
Vietnam.
The country has an increasing trend in the foreign investments made, thereby
increasing its competency economically. The future of Vietnam’s economic market is predicted
to be highly competitive in terms of business operations globally. Accordingly, more visitors are
predicted to enter the country due to the intervention strategies used by the government to
improve the conditions within the investment market.
Works Cited
Tran N. B. V., Thirumaran, K., Duong, T. H. Y., Nguyen, N. A., Vietnam’s Visa Policy for
Tourists. (2015): 286-298
Truong, T. C. Factors Affecting Foreign Tourists of Ho Chi Minh City. (2015): 1-50
Hoang, T. P., Quang, T. H., Phuong, N. N., Ha, T. N. "Factors Affecting The Decision of The
Selection of Foreign Tourists For A Tourist Destination: A Study in Da Nang City,
Vietnam." European Journal of Business and Social Sciences 4.10 (2016): 86-97.
Vietnam-Evisa.Org. "The Amount of Foreign Tourist Come to Vietnam Jumping to 10.6 %."
Vietnam Visa – Visa to Vietnam for Tourists and Business. (2015) Retrieved from:
<www.vietnam-evisa.org/news/travel/view/the-amount-of-foreign-tourist-come-to-
vietnam-jumping-to-10-6.html.>
Malone, C., Heng, S. L., Tuyet V. , and Kyaw, K. K.."Vietnam and Myanmar Continue to
Advance." (2016). Retrieved from:
<Https://www.bcg.com/publications/2016/globalization-growth-vietnam-myanmar-
continue-advance.aspx.>
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