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The Rise and Transformation of Vietnam's Tourism and Culinary Scene

GOOVER DAILY REPORT July 8, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Vietnamese Cuisine's Global Recognition
  3. Vietnam's Cultural and Heritage Festivals
  4. Tourism's Economic Impact and Growth
  5. Popular Tours and Itineraries
  6. Luxury and Custom Travel Experiences
  7. Innovations in Cultural Heritage Preservation
  8. Challenges in Vietnam’s Tourism Sector
  9. Conclusion

1. Summary

  • The report titled "The Rise and Transformation of Vietnam's Tourism and Culinary Scene" delves into the rapid growth and innovative changes in Vietnam's tourism and culinary sectors. It highlights the significant milestones such as the introduction of the Michelin Guide, which has elevated Vietnamese cuisine to an international level, garnering global recognition and increased revenue for restaurants like Gia and An An Saigon. The report also explores major cultural festivals like Tet Nguyen Dan and the Hue Festival, which celebrate the country's rich cultural heritage. Furthermore, it discusses the economic impact of tourism, with impressive growth in revenue and tourist numbers, as well as the introduction of new tourism products and initiatives aimed at promoting sustainable cultural heritage, particularly in cities like Hoi An.

2. Vietnamese Cuisine's Global Recognition

  • 2-1. Michelin Guide's Impact on Vietnamese Cuisine

  • The Michelin Guide has significantly contributed to elevating Vietnamese cuisine on a global scale. As of 2024, several Vietnamese restaurants have been awarded Michelin stars, including Hibana by Koki, Anan Saigon, La Maison 1888, Gia, Akuna, Tam Vi, and The Royal Pavilion. These honors have highlighted the creativity and meticulous culinary arts practiced in Vietnam. The presence of Michelin has not only recognized the cuisine's quality but also driven increased visibility and popularity both locally and internationally. Additionally, the launch of the Michelin Guide in Hanoi and Ho Chi Minh City on June 6, 2023, is seen as a historical milestone marking a new chapter for Vietnamese cuisine, securing its place among the global culinary elite.

  • 2-2. Increased Restaurant Popularity and Revenue

  • The recognition by the Michelin Guide has resulted in a surge in popularity and revenue for Vietnamese restaurants. For instance, Gia, a Michelin-starred restaurant in Hanoi, experienced a full reservation list for three months following the announcement. Similarly, An An Saigon requires reservations 1-2 months in advance, and the Michelin recognition has attracted not only foreign but also more local customers. Restaurants like Hibana by Koki have reported growth despite high meal costs. The Michelin Guide has effectively put Vietnamese restaurants on the map, leading to higher customer traffic and increased financial performance. Notably, the Bib Gourmand list and Michelin Selected establishments have also seen growth in customer numbers, particularly foreign tourists, resulting in more staff hires and potential expansions.

  • 2-3. Diversity and Quality of Vietnamese Dishes

  • Vietnamese cuisine's diversity and quality have been widely recognized, further cemented by the Michelin Guide. Despite the absence of 'banh mi' in the Michelin listings, other dishes like pho, bun cha, and the nuanced offerings from the recognized restaurants display the country's rich culinary heritage. Various travel and culinary magazines have repeatedly placed Vietnam at the top of their lists for its unique and flavorful dishes. Moreover, the culinary landscape in places like Vinh Khanh Food Street and the reviving of traditional recipes, as displayed by the success of Huong Binh Pho, show that Vietnamese cuisine encompasses both street food and high-end dining experiences. This intricate tapestry of dishes has drawn food enthusiasts worldwide, who appreciate both the authenticity and the sophisticated presentation of Vietnamese food.

3. Vietnam's Cultural and Heritage Festivals

  • 3-1. Key cultural festivals in Vietnam

  • Vietnam showcases a rich array of cultural festivals that reflect its vibrant traditions and deep historical roots. Key festivals include Tet Nguyen Dan, Hue Festival, Lim Festival, Mid-Autumn Festival, and Giong Festival. Each event offers unique insights into the way of life in Vietnam, celebrating family, history, and spirituality.

  • 3-2. Significance of Tet, Hue Festival, and others

  • Tet Nguyen Dan, marking the Lunar New Year, is the pinnacle of Vietnamese festivities. It involves reunions, ancestral celebrations, and traditional foods like bánh chưng and bánh tét. The Hue Festival, held biennially, highlights Vietnam's imperial legacy with performances like nha nhac (court music), contemporary art, and traditional crafts. The Lim Festival near Hanoi features Quan Ho folk singing and traditional games, indicating agricultural rhythms and communal life. The Mid-Autumn Festival in Hoi An emphasizes family reunions with lanterns and mooncakes, and the Giong Festival honors the hero Saint Giong through dramatic reenactments of his battles.

  • 3-3. Deep insights into Vietnamese heritage

  • These cultural festivals provide profound insights into Vietnamese heritage. For instance, Tet reveals the importance of family bonds and ancestor worship in Vietnamese society. The Hue Festival offers a glimpse into the grandeur of past empires, while the Lim Festival highlights the lyrical beauty of Vietnamese folk culture. The Mid-Autumn Festival reflects themes of thankfulness and familial unity. Lastly, the Giong Festival embodies the values of courage and nationalism that are central to Vietnam's identity. Each festival serves as an avenue for celebrating and preserving the cultural and historical essence of Vietnam.

4. Tourism's Economic Impact and Growth

  • 4-1. Revenue Growth from Tourism

  • In the first half of 2024, tourism sector has significantly contributed to Vietnam's economy. Revenue from accommodation and food services was estimated at 356.4 trillion VND, a year-on-year increase of 15.2%. Additionally, the service sector grew by 6.64% and contributed 49.76% of the gross domestic product (GDP). Among various localities, Ho Chi Minh City ranked first in terms of revenue with an estimation of 92.6 trillion VND, reflecting a 14.6% increase compared to the previous year.

  • 4-2. Increased Foreign and Domestic Tourist Targets

  • Vietnam aims to attract 17-18 million foreign tourists and 110 million domestic tourists, targeting approximately 840 trillion VND in revenue from tourism for the year 2024. The expected boost in tourism revenue is supported by the peak international tourism season from October to April. Various regions are already showing impressive growth rates. For instance, the central province of Binh Dinh saw a 106% increase in tourist numbers, serving 5.6 million tourists and earning around 15 trillion VND. Similarly, Khanh Hoa recorded nearly 5.2 million tourists, with a total revenue of over 26 trillion VND, a 97% rise compared to the previous year.

  • 4-3. Introduction of New Tourism Products

  • To meet the increased targets, Vietnam has introduced a range of new tourism products. Notable among these are cruise tourism in Quang Ninh and Da Nang, as well as night tours in Hanoi. Furthermore, Vingroup’s establishment of the For Green Future Trading and Services Joint Stock Company, focusing on trading and leasing electric cars, is anticipated to promote domestic tourism, particularly in cities such as Hanoi, Da Nang, Ho Chi Minh City, and Thua Thien-Hue.

5. Popular Tours and Itineraries

  • 5-1. Detailed itineraries for Sapa, Halong Bay, and other destinations

  • The 5-day Sapa Halong Bay tour package from Hanoi starts with a day trip from Hanoi to Sapa, including visits to Black H’Mong hill tribe villages and overnight stays in Sapa town. Subsequent days include trekking through rice paddy terraces, visiting the hydroelectric station built by the French, and a return to Hanoi. The final days focus on Halong Bay, with activities such as cave exploration, swimming on Tit Top island, and a Tai Chi class on a cruise (docId: go-public-web-eng-9139545276454669357-0-0). The 3-day Hanoi - Ninh Binh - Ha Long Bay & Lan Ha Bay 5 Star Cruise includes departure from Hanoi, a journey through Ninh Binh including Trang An, Bai Dinh, and Mua Cave, and a cruise through Ha Long Bay and Lan Ha Bay before returning to Hanoi (docId: go-public-web-eng-5589065196135632801-0-0). The 7-day tour exploring South and North Vietnam encompasses a journey from Ho Chi Minh to Hanoi with notable stops in Ben Tre (Mekong Delta), Ha Long Bay, and Ninh Binh. Highlights include a junk cruise on Ha Long Bay, boat trips in the Mekong Delta, and a walking tour in Hanoi's Old Quarter (docId: go-public-web-eng-4178995014972588242-0-0). The 12-day itinerary by Indochina Voyages covers Ho Chi Minh City, Mekong Delta, Hoi An, Hue, Hanoi, and Ha Long Bay. Travelers experience cultural sites, traditional cuisine, and natural landscapes, with activities like visiting the Cu Chi Tunnels, a flight to Danang, exploring ancient towns, and an overnight cruise in Ha Long Bay (docId: go-public-web-eng-8427982753868571124-0-0).

  • 5-2. Experiences in cultural and natural exploration

  • The Sapa Halong Bay tour provides extensive cultural exposure to minority villages such as Black H’Mong and Giay, and natural exploration through trekking in terraced rice paddies and lush tropical rainforests. Highlights include a trek in Hoang Lien National Park and the exploration of Cat Cat Village and Muong Hoa river (docId: go-public-web-eng-9139545276454669357-0-0). The 3-day Hanoi - Ninh Binh - Ha Long Bay & Lan Ha Bay 5 Star Cruise offers cultural experiences in Vietnam’s ancient towns and natural exploration along the beautiful landscapes of Ha Long Bay with a luxury cruise (docId: go-public-web-eng-5589065196135632801-0-0). In the 7-day South and North Vietnam tour, visitors explore significant cultural sites such as the Cu Chi Tunnels, the Imperial City in Hue, and historic structures in Hanoi's Old Quarter. Natural explorations include a boat excursion along the Mekong River and a junk cruise in Ha Long Bay (docId: go-public-web-eng-4178995014972588242-0-0). The 12-day itinerary emphasizes cultural sites like the Saigon Notre-Dame Cathedral and My Son Sanctuary, alongside natural wonders such as the cruise in Ha Long Bay, the Mekong Delta exploration, and visits to rice paddies and limestone karsts in Ninh Binh (docId: go-public-web-eng-8427982753868571124-0-0).

  • 5-3. Accommodations, meals, and activities included

  • The Sapa Halong Bay tour package includes accommodations in hotels and cruises, meals (breakfast, lunch), guided tours, and transportation via train, bus, and car. Activities encompass trekking, visiting local villages, cave exploration, and Tai Chi classes (docId: go-public-web-eng-9139545276454669357-0-0). The 3-day Hanoi - Ninh Binh - Ha Long Bay & Lan Ha Bay tour includes flights, expert guides, meals, and transport. Key activities are cultural site visits, a luxury cruise, and excursions in Ninh Binh (docId: go-public-web-eng-5589065196135632801-0-0). The 7-day tour features private tours with custom-tailored experiences, accommodations, boat excursions, flights, and meals. Activities include cultural site visits, boat rides, and overnight stays on a junk in Ha Long Bay (docId: go-public-web-eng-4178995014972588242-0-0). The 12-day itinerary provides accommodations in hotels, meals, domestic flights, private transfers, and guided tours. Activities cover traditional cooking classes, market visits, cave explorations, and overnight cruises (docId: go-public-web-eng-8427982753868571124-0-0).

6. Luxury and Custom Travel Experiences

  • 6-1. Tailored luxury travel in Vietnam

  • Vietnam's luxury travel scene is characterized by bespoke and tailor-made experiences that capture the essence of the country's diverse cultural heritage and natural beauty. Travel experts at NUBA emphasize the creation of customized itineraries that align with the personal interests and preferences of travelers. These itineraries offer exclusive experiences such as private dinners at historic French villas in Hanoi, exploring the Mekong Delta on exclusive cruises, and soaking in the tranquil ambiance of ancient temples in Hue. Each experience is designed to provide a unique and unforgettable journey through Vietnam's vibrant colors, exquisite flavors, and rich cultural heritage.

  • 6-2. Popular travel times and personalized itineraries

  • Vietnam's tropical climate ensures favorable temperatures throughout the year. However, the optimal travel period is identified as between January and March, offering hot days and cooler nights. NUBA’s travel designers have conducted extensive explorations to craft the perfect tailor-made trips. They select the most outstanding destinations and exclusive accommodations, making it easier for travelers to navigate the vast array of experiences Vietnam offers. Whether it is the vibrant energy of Saigon or the serene rice terraces of Sapa, travelers can experience the best of Vietnam at their own pace.

  • 6-3. Insights from travel experts and recommendations

  • Experts at NUBA have redefined the travel concept by going beyond the ordinary. They create travel experiences that generate unforgettable and lasting memories. Recognizing that no two travelers are alike, NUBA’s experts have delved deep into Vietnam to identify the key elements for a tailor-made trip. They provide in-depth insights and recommendations about the best destinations and activities, ensuring that each itinerary is unique. By offering expertise and personalization, NUBA helps travelers connect with Vietnam's most genuine and attractive aspects.

7. Innovations in Cultural Heritage Preservation

  • 7-1. Hoi An's Innovative Heritage Development

  • The ancient town of Hoi An is being developed as a unique innovative heritage site that balances preservation and development. Architect Ngo Viet Nam Son emphasized the importance of maintaining Hoi An as a green, climate-resilient, and environmentally friendly destination. Hoi An is notable for its low ratio of concrete buildings and its integration of nature with urban spaces. The town promotes community-based innovations in areas such as crafts, architecture, and fine arts. The local community is actively engaged in heritage restoration and preservation, with a focus on promoting architecture, culture, crafts, and innovation in harmony with nature.

  • 7-2. UNESCO Recognition and Digitalization Efforts

  • Hoi An has received significant recognition from UNESCO and is part of the UNESCO Creative Cities Network (UCCN) in the Crafts and Folk Art category. The town is a hub for various cultural and art events both locally and internationally. Efforts are being made to promote digital transformation, including the creation of a digital map of cultural innovations. The ancient town's Mid-Autumn Full Moon Festival and various other festivals have been recognized as National Intangible Heritage. The preservation of documentary heritage items such as Nguyen Dynasty woodblocks, doctoral steles, and other valuable records are conducted through digitalization and public engagement.

  • 7-3. Balance Between Preservation and Development

  • Hoi An aims to strike a balance between preserving its rich cultural heritage and promoting development. The introduction of policies for zero-waste, non-plastic, and low-carbon tourism highlights the town's commitment to sustainable tourism. Additionally, infrastructure development pressures are managed by diverting accommodation demands to neighboring urban areas instead of expanding hotel and resort constructions within Hoi An. The town also promotes innovative solutions and local brands while focusing on the education of young talents in crafts to ensure sustainable growth.

8. Challenges in Vietnam’s Tourism Sector

  • 8-1. Impact of Rising Sea Freight Rates on Tourism

  • Rising sea freight rates have significantly impacted the tourism sector in Vietnam. According to Mr. Tran Van Linh, Chairman of the Board of Directors of Thuan Phuoc Seafood Company, the cost of shipping from Vietnam to Europe has increased to around USD 4,000 - 5,000 per container, which is 2-3 times higher than the rates at the end of the previous year. Exports to the US have also seen a rise in costs, with average shipping rates now between USD 6,000 - 7,000 per container. These increased costs, coupled with longer shipping times of 7-10 days, have created significant challenges for Vietnamese businesses, including seafood exporters. The increase in transportation costs is eroding profits, accounting for over 15% of product costs, and disrupting production and delivery schedules.

  • 8-2. Addressing Shortage of Empty Containers

  • The shortage of empty containers is another major challenge faced by Vietnamese businesses. The higher costs in China have led to a concentration of empty containers there, resulting in a shortage in Vietnam. This shortage is expected to push shipping freight prices even higher. Mr. Phan Dinh Quan, Director of EZ Shipping Logistics Co., Ltd. in Hanoi, highlighted that this situation has caused considerable uncertainty among businesses, making it difficult to predict future freight rates.

  • 8-3. Measures by the Ministry of Industry and Trade

  • The Ministry of Industry and Trade in Vietnam has been actively working to address the issues raised by rising sea freight rates. According to Mr. Tran Quoc Toan, Deputy Director of the Import-Export Department, the ministry has coordinated with relevant agencies to research the increase in freight rates and propose appropriate solutions. The ministry is also working to ensure proactive communication with businesses to help them manage import and export activities more effectively. Additionally, the ministry is collaborating with the Ministry of Finance and the Logistics Association to discuss and implement timely solutions.

9. Conclusion

  • Vietnam's tourism and culinary sectors continue to thrive, driven by global recognition and a rich cultural heritage. The Michelin Guide has significantly boosted the culinary landscape, making Vietnamese cuisine more popular internationally and bringing economic benefits to local restaurants. Meanwhile, cultural festivals like Tet Nguyen Dan and the Hue Festival help preserve and promote Vietnam's traditions. However, the sector faces challenges like rising sea freight rates and a shortage of empty containers, which increase costs and disrupt logistics. Efforts by the Ministry of Industry and Trade to mitigate these issues are ongoing. Hoi An's innovative heritage development balances preservation with sustainable tourism, offering a model for other regions. Future research should focus on evaluating these measures' effectiveness and the long-term effects of global recognition on Vietnam's tourism and culinary sectors. Practical applications include targeted marketing strategies and investments in infrastructure to further bolster growth and sustainability in the tourism industry.

10. Glossary

  • 10-1. Vietnamese Cuisine [Culinary]

  • Renowned for its street food and gourmet dishes, Vietnamese cuisine has garnered global recognition, evidenced by the inclusion of Vietnamese restaurants in the Michelin Guide. This recognition has resulted in increased popularity, bookings, and revenue, showcasing the diversity and quality of the nation's culinary offerings.

  • 10-2. Michelin Guide [Certification]

  • The Michelin Guide's entry into Vietnam in 2023 has been a milestone, elevating the country's culinary scene to international prestige. It has significantly impacted the business of recognized restaurants, attracting more customers and increasing revenue.

  • 10-3. Tet Nguyen Dan [Festival]

  • The Lunar New Year celebration in Vietnam, known for its special foods, traditions, and cultural significance, providing deep insights into Vietnamese heritage and values.

  • 10-4. Hoi An [City]

  • An ancient town recognized for its innovative heritage development, blending preservation with sustainable tourism and culture-based innovation. Part of the UNESCO Creative Cities Network.

  • 10-5. Vietnamese Cultural Festivals [Cultural Event]

  • Events like the Hue Festival, Lim Festival, and Mid-Autumn Festival reflect Vietnam's rich traditions and cultural heritage, drawing both local and international tourists.

11. Source Documents