ONLINE: Business Recovery Talk #4 - Vietnam Economic Rebound and Focus on the Tourism sector

In 2019, the tourism sector in Vietnam contributed 9.2% to the country's GDP. As tourism has become one of the major sectors within the economy of Vietnam in recent years, the share of GDP contribution from the tourism sector has been growing annually since 2015. 

Besides, thanks to Vietnam’s expanding middle class, the share of domestic guests staying in upscale hotels while traveling has been rising steadily. 

However, the pandemic has disrupted Vietnam’s year-on-year growth of inbound tourism while causing dire consequences for the tourism industry and related sectors. The country closed its border to inbound tourists in early 2020, resulting in a drastic decrease in the number of international visitors. After having managed to control the spread of the pandemic, Vietnam has been promoting domestic tourism to accelerate travel recovery. While battling the fourth wave, the country is now considering the possibility of using vaccine passports towards international tourism rebound.

We have asked our patron member McKinsey & Company to give us an outlook on the economic situation in Vietnam and most specifically the tourism sector.

Speaker(s)

Matthieu FRANCOISAssociate Partner - McKinsey & Company