Tourism in Vietnam.
Vietnam's tourism industry plays a significant role in the country's modern economy. The number of international arrivals has been steadily increasing, reaching 18 million in 2019 compared to 2.1 million in 2000. To further enhance the sector, the Vietnam National Administration of Tourism has implemented a long-term plan aimed at diversifying the industry and boosting foreign exchange inflows into the country.
The importance of tourism in Vietnam's economy.
Tourism holds great importance in Vietnam, attracting various types of travelers such as backpackers, culture enthusiasts, nature lovers, beachgoers, military personnel, and veterans. As a result, Vietnam has emerged as a sought-after tourist destination in Southeast Asia. Both local and international tour operators offer a wide range of experiences, including tours to ethnic minority groups, walking and bicycle tours, photography expeditions, kayak trips, and multi-country journeys that often include neighboring countries like Cambodia, Laos, and Thailand. Since 1997, foreign tourists have enjoyed the freedom to explore the country.
Vietnam's economy has undergone a significant transformation from an agrarian-based system to a service-oriented one. Services, including the hotel and catering industry and transportation, contribute over a third of the country's gross domestic product (GDP). On the other hand, manufacturing and construction account for 28 percent, agriculture and fisheries for 20 percent, and mining for 10 percent. Notably, tourism itself contributes 4.5 percent to Vietnam's GDP, as of 2007.
Transportation in Vietnam
Transportation in Vietnam is experiencing rapid improvements in both quantity and quality. The growth of road traffic is notable, although the major roads pose challenges due to outdated design and a mix of traffic that is not suitable. However, there has been an acceleration in the construction of expressways in recent years. Additionally, air travel plays a significant role in long-distance travel. Furthermore, the development of metro systems is underway in the two major cities of Hanoi and Ho Chi Minh City.
In Vietnam, motorcycles dominate the road traffic, reflecting the transportation landscape. The total length of the Vietnamese road system is approximately 222,179 km, with only 19.0% of it being paved. This mainly includes national and provincial roads, as reported by the Vietnam Road Administration in 2004. The national road system spans 17,295 km, with 27.6% of its length being paved. On the other hand, the provincial road system covers 27,762 km, with 23.6% being paved. While the road network is relatively well-developed, it suffers from poor conditions. As a result, the average speed on national roads is a mere 50 kilometers per hour (31 mph), primarily due to congestion and safety concerns.
The financing of road infrastructure comes from various sources, including the government, overseas donors such as the ADB, WB, JBIC, and business organizations. Toll collection on bridges and roads is the primary means of recovering road investments, in accordance with relevant laws.
Vietnam's road system is classified based on the administrative hierarchy, with each classification assigned a specific milestone color and abbreviation. National roads (quốc lộ, abbreviated QL) are under the administration of the central government and are marked by white milestones with red tops. Previously, they were denoted by white on blue markers on direction signs, but since 2015, they have been denoted by black on white markers. Expressways or freeways (đường cao tốc, CT) are indicated by black on yellow markers on direction signs, and their guide signs are green, distinguishing them from the blue guide signs along surface roads. Provincial roads (tỉnh lộ) also have their own classification and signage.
Expressways in Vietnam are a relatively new concept that aims to address the growing traffic and safety issues on major roads. These expressways separate high-speed traffic from slower, local traffic, providing a safer and more efficient transportation system.
Vietnam currently has two classes of expressways. Class A expressways have grade separated interchanges, while Class B expressways have at-grade intersections. Both classes have a minimum of two lanes in each direction. The design-speed categories range from 60 to 120 km/h.
While cars, buses, and trucks are allowed on the expressways, agricultural vehicles and motorcycles are not permitted. Motorbikes have long been a popular mode of transportation in Vietnam, with a high ownership rate and a significant presence on the roads. However, the government has expressed the desire to reduce the number of motorbikes to alleviate congestion.
Car ownership in Vietnam is relatively low compared to motorbikes, with 2 million registered passenger cars as of 2015. The high import taxes and sales tax contribute to the high prices of cars in Vietnam, making it one of the most expensive countries to buy a car. Despite this, car sales continue to grow at a double-digit rate each year.
Overall, the introduction of expressways and efforts to reduce motorbike usage reflect Vietnam's commitment to improving its transportation infrastructure and addressing the challenges posed by increasing traffic.
As of 2015, there were 2 million registered passenger cars in Vietnam. However, car prices in the country are kept high due to import taxes and sales tax. These taxes and fees can make the final price of a car in Vietnam up to 2 or 3 times higher than its original cost. For example, in 2016, a Lexus LX was priced at 7.3 billion VND (USD 315,000) and a Toyota Innova at 800 million VND (USD 35,000). Despite the high prices, car sales in Vietnam are growing at double digit rates each year.
In terms of water transport, most river crossings in Vietnam have been replaced by bridges. However, ferry crossings still operate for vehicles that are not allowed on expressways. For example, there is a ferry service between Ho Chi Minh City and Long Thanh, crossing the Dong Nai River. Additionally, a high-speed passenger ferry service is available between Ho Chi Minh City and Vung Tau.
Vietnam has several ports and harbors, including Cam Ranh, Da Nang, Hai Phong, Ho Chi Minh City, Hong Gai, Qui Nhơn, Nha Trang, Nghi Son, Son Duong, Dung Quất, and Vũng Tàu. These ports play a significant role in the country's maritime activities. Vietnam has a vast network of waterways, with a total length of 17,702 km, of which 5,000 km are navigable by vessels with a draft of up to 1.8 m.
In terms of merchant marine, Vietnam has a total of 579 ships with a gross tonnage of 1,000 or over. These ships include barges, bulk carriers, cargo ships, chemical tankers, container ships, liquified gas carriers, passenger/cargo ships, petroleum tankers, refrigerated cargo ships, roll on/roll off ships, and specialized tankers. Additionally, there are 86 ships registered in other countries, such as Cambodia, Kiribati, Mongolia, Panama, Taiwan, and Tuvalu.
Merchant marine in Vietnam consists of a total of 579 ships with a gross tonnage of 1,000 GT or over. These ships are categorized into various types, including 1 barge, 142 bulk carriers, 335 cargo ships, 23 chemical tankers, 19 container ships, 7 liquified gas carriers, 1 passenger/cargo ship, 48 petroleum tankers, 1 refrigerated cargo ship, 1 roll on/roll off ship, and 1 specialized tanker. Additionally, there are 86 ships registered in other countries, with Cambodia, Kiribati, Mongolia, Panama, Taiwan, and Tuvalu being the countries of registration. This information is based on data from 2010.
In terms of air transport, Vietnam has witnessed a significant increase in air travel. The route between Hanoi and Ho Chi Minh City has been ranked as the 7th busiest airline route in the world in terms of seat capacity since 2016.
Vietnam operates a total of 37 civil airports, including three international gateways: Noi Bai in Hanoi, Da Nang in Da Nang City, and Tan Son Nhat in Ho Chi Minh City. Among these, Tan Son Nhat is the largest airport, handling 75 percent of international passenger traffic. Vietnam Airlines, the national airline, operates a fleet of 82 aircraft that connect Vietnam with 49 foreign cities. VietJet Air and Bamboo Airways are the second and third largest domestic carriers, respectively, serving both domestic and international destinations.
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