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Y, XXXX
Vu Minh Hieu
Van Lang University,
Ho Chi Minh City, Vietnam
Email: hieu.vm@vlu.edu.vn
Reference to this paper should be made as follows: Ngoc, N.M., Tien, N.H.,
Hieu, V.M., Duc, L.D.M. and Trang, T.T.T. (XXXX) ‘Sustainable integration
in Vietnam’s tourism industry’, World Review of Entrepreneurship,
Management and Sustainable Development, Vol. x, No. y, pp.xx–xx.
Vu Minh Hieu[AQ1]
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1 Introduction
In the world’s fast progressing service economy, as a service industry, tourism has
become the most important business activity since it reduces unemployment, improves
living standards for the local community, promotes economic growth and social welfare
(Gabriel et al., 2017). Evidences from empirical studies around the world also confirmed
many principal positive influence of this industry on the national and local image,
competitiveness of a nation in the global business landscape (Dung et al., 2019; Duc et
al., 2019; Petrovic et al., 2017; Lucchetti and Arcese, 2014; Ngoc and Anh, 2020).
However, as a matter of fact, each business activity, regardless of industry, has its
unfavourable or even detrimental effects on the surrounding natural and social
environment (Long et al., 2019d; Villanueva-Alvaro et al., 2017). Many researches
conducted on environmental side-effect impacts of fast-growing tourism industry show:
Sustainable integration in Vietnam’s tourism industry
the intensive land exploitation and massive energy consumption, the overuse of natural
resource, the degradation of biodiversity, the thinner ozone layer due to higher carbon
footprint, climate change, sea level rise and global diseases such as the Covid-19 (Long
et al, 2019e, 2019a, 2019b; Gossling, 2002; Gossling and Peeters, 2015; Sunlu, 2003).
The main social and community related side-effect impact of this phenomenon is,
amongst other, the social unrest and anxiety in local communities due to unknown effect
of cultural assimilation in most visited but sparsely populated localities (Diedrich and
Aswani, 2016).
Fast but less sustainable development of the tourism industry in Vietnam as well as in
other developing nations is related with many concerns on its unwelcome environmental
AQ3: ‘EU (2013)’ is effect (Dana, 1994). As a result, the concept of responsible and sustainable tourism was
not included in the
reference list. Please pinpointed in many tourism initiative and programs issued by European Union (EU,
provide the reference 2013[AQ3]) which highlight many challenges for the tourism activities in Vietnam in
details to be included addition to the erosion of traditions and values existed and cultivated for many
in the reference list, or generations in most of localities, cultural disparities and conflicts while clashing with
delete the citation if foreigners leading to distrust and disharmony between tourism firms and local
not required.
community, high sense of perceived social insecurity, destruction of cultural values,
depletion of natural resources and higher rate of environment degradation. As such, in
Vietnam, sustainable development of tourism is still questionable (Butler, 1991; Vinh et
al., 2019c, 2019a) and there is an urgent need of formulating a clear sustainable service
integration for tourism development in Vietnam. Sustainable service integration could
lead to stronger synergy effects alleviating above mentioned possible negative sides and
threats caused by intensively growing tourism industry in Vietnam as well as in other
developing nations.
Articles published in the World Review of Entrepreneurship, Management and
Sustainable Development so far have strongly focused on research on diverse issues
related to entrepreneurship and sustainability of business activities in many different
industries of predominantly developing countries around the world. In order to contribute
to one of the streams of research in this journal, this article is one of the first to carry out
overarching study of sustainable integration trend and issues of the tourism service sector
(industry) with a very specific background and competitive odds in Vietnam, also one of
the developing countries in the world.
2 Literature review
The concept of sustainable tourism development was, among others, one of the research
streams regarding sustainability issues introduced to management science literature by
different authors, researchers over quite a long time. Some of them are presented below:
Butler (1991) and Muller (1994) indicated that sustainable tourism development
includes tourism activities conducted with respect and in line with the interest of local
community, preserving socio-cultural values, guaranteeing both economic benefit and
natural environment untainted, while keeping tourists’ satisfaction unceasingly at high
level.
According to Vinh et al. (2019b); Dung et al. (2019) and Harris et al. (2002), the
cultural aspect of sustainable tourism development alone should be strictly associated
with conservation, preservation and embellishment of all functioning travel destinations
and tourism attractions, delivering hospitality related education and training for all walks
N.M. Ngoc et al.
seen as a new management concept in the tourism industry of both developed and
developing nations (Long et al., 2019b, 2019d). Sustainable tourism development could
also be seen from a very unique perspective of synergetic integration of services to
combine and streamline offers to customers, at the same time to deliver high end
significant values to visitors while increasing economic benefits and reducing bad socio-
environmental impacts. Henceforth, in a short summary, the key roles of sustainable
development as a new management concept and orientation in the tourism industry are
presented as four following guidelines (Tien, 2018c; Dung, 2019; UNEP, 2005;
Villanueva-Alvaro et al., 2017; Gabriel et al., 2017):
Firstly, it must contribute significantly to a long-term strong economic development
of the localities engaged in tourism development.
Secondly, it must induce achieving major goals in terms of retaining political
stability, enhancing social progress and wellbeing, preserving cultural relics and
remembering historical values of the localities engaged in tourism development.
Thirdly, it must lead to sparing use of precious natural resources, enriching
ecosystems and protecting surroundings.
Fourthly, most importantly from the perspective of this study, it must lead
straightaway to the enhancement of international integration capacity of the tourism
industry.
3 Methodology
This article was intended to investigate the issues related to sustainability and integrity
regarding the tourism industry in developing countries. The research focused on Vietnam
where a high level of sustainability and integrity of tourism services is hardly observed.
To attain the objective of this study, a desktop, qualitative method which followed the
existing literature analysis was adopted (Opute et al., 2020; Dana and Dana, 2005). A
descriptive literature survey was used due to its suitability and ability to get adequate
insight into previous relevant research and theoretical issues. In this study, we used
keywords and other relevant strings to search for articles related to the sustainability and
integrity issues of the tourism industry. As such, we engaged a systematic and explicit
methods that will assist us in classifying, hand-picking and conducting evaluation of
appropriate literature related to the interesting research issues (Cronin et al., 2008;
St. John and McNeal, 2017). In order to ensure that accurate information was gathered,
we engaged in the process of back and forth reading and revision. Hence, the
data obtained from literature review reflected a wide range of theoretical perspectives and
viewpoints (Snyder, 2019).
To retain and expand the scope of methodology used in economic and
entrepreneurship research, this study applied a descriptive statistical method to analyse
data available from the General Statistic Office and Department of Culture, Sport and
Tourism of different localities and provinces in Vietnam (Dana and Dana, 2005). Data
on their tourism activities are collected, compiled and compared. In order to guarantee
quality and rigour during the research process we put forward very strict criteria for
research objects’ (localities, provinces) selection (Groenland and Dana, 2019):
N.M. Ngoc et al.
visitors) was 2.5 times higher than in 2007 (about 4.2 million visitors) and from more
nationalities than in 2007 due to the fact that Vietnam is increasingly integrating with the
world. The five countries with the top number of tourists visiting Vietnam are: China,
Korea, Japan, the USA and Taiwan, respectively (GSO, 2016).
It can be said that in the past 10 years, the country with the highest number of
international visitors to Vietnam has always been China. And the number of Chinese
tourists coming to Vietnam is increasing day by day. In 2007, Chinese tourists coming to
Vietnam were only 574,600, accounting for about 14% of international tourists, by 2016,
this number was 2.7 million and about 27% respectively (GSO, 2016). Whether this is a
good or a bad sign, it will depend on not only the number of tourists entering Vietnam,
but also on their level of spending for local tourism products.
The world economy is developing strongly and the people’s lives are getting more
and more prosperous and well-off. So the travel demand of people in the world is
increasing day by day. China, with more than 1.4 billion people, will spend more on
tourism. Vietnam is one of the countries neighbouring China, so it is natural for Chinese
to come to Vietnam for touristic purposes. The increase in the number of tourists entering
Vietnam will help increase the central budget revenue in general and for localities with
potential of tourism development in particular. But if we are too dependent on Chinese
for tourism revenue sources as we were in terms of foreign trade, there may be times,
when China cuts off the sources of tourists coming to Vietnam for political or non-
political reasons, the impact on Vietnam's economy will be disastrous.
out of these four localities, Chinese visitors coming to Da Nang Province are the most
and this also brings great opportunities and development challenges for Da Nang
Province (DSCTHCM, 2014b; DSCTHN, 2014; DSCTDN, 2014; DSCTCT, 2014).
4.2.4 Ecotourism
Ecotourism is a type of tourism based on nature and indigenous culture, associated with
environmental education, making a great contribution to the survival and sustainable
development with active participation of the local community. This type of tourism
Sustainable integration in Vietnam’s tourism industry
requires high responsibility from all sides (tourists, tourist companies, government,
society, local community) for areas with unspoiled natural environments. Tourists come
here to learn about the nature and culture of a given locality in the present and in the past.
Fortunately, Vietnam has the advantage of having many protected areas, national parks
and forbidden forests such as: Ha Long Bay, Ba Be Lake, Phong Nha Cave, Cat Tien
National Park and 8 biological reserves.
Can Gio mangrove forest with a diverse mangrove ecosystem is rich in plants and
animals, creating a clean ecological environment called ‘green lungs’ or ‘green wall’ of
Ho Chi Minh City. In 2000, UNESCO recognised Can Gio mangrove as a world
biosphere reserve. Can Gio mangrove ecological reserve is the place chosen by many
domestic and foreign tourists to visit and spend time within a day. According to the data,
annually Can Gio tourist area welcomes and serves about 450–500 thousand visitors, this
shows that the demand for ecotourism is huge and full of potential to bring great revenue,
and an image to Ho Chi Minh City as an attractive ecotourism destination.
but still much higher than Vietnam. In terms of the average tourist spending per day,
Singapore is the highest, followed by Thailand, Vietnam and Malaysia close to the same
level.
If we only look at spending from international visitors to Vietnam alone, we find that
there are many problems. This is the most important thing to consider when trying to
increase the quality of services for international tourism. In fact, we can only see that the
total revenue from serving international visitors to Vietnam has basically increased.
Although it has increased, compared to the world, this number is still quite modest.
Unfortunately, the revenue structure per international visitor in Vietnam has not
increased, or even decreased.
The revenue is not high with the large number of tourists, so the average spending per
day of international visitors to Vietnam is increasing but not at a high level. In 2005, the
average daily spending of international visitors to Vietnam was 76.4 USD, but in 2013 it
increased to 95.8 USD. However, we have seen a downward trend from 2013 to present.
In 2017, it also plummeted because many 0USD tours were offered. In terms of structure
of spending, much is still spent on room rental (25–28%); and eating and drinking (18–
22%). Unfortunately, spending on local goods (products and services) by international
visitors to Vietnam is decreasing day by day. In 2005, spending on goods accounted for
16.6% of total expenditure of international visitors to Vietnam. But this figure in 2013
was only 13.3%.
Carefully analysing the average daily spending of international visitors to Vietnam by
nationality, we find that the order of tourists spending in Vietnam has always changed. If
in 2005, the top 5 countries with daily average spending were: Singapore (120.8 USD –
1.5 times higher than the average); Malaysia and Spanish (with the same amount of 103.6
USD – 1.4 times higher than the general average); Indonesia (99.6 USD – 1.3 times
higher than the average); South Korea (97.3 USD – more than 1.2 times than the
average). By 2013, this order was ranked first by Malaysia (147.2 USD – 1.5 times than
the average); second is Singapore (138 USD – 1.4 times higher than the average); third is
Russia (124.0 USD – nearly 1.29 times higher than the average); fourth is Sweden (121.9
USD – 1.27 times higher than the average); fifth is Laos ($ 116.9 – more than 1.2 times
than the average) (GSO, 2016). From 2005 – 2013, Singapore, Japan, Malaysia and
Indonesia were always in the top ranks in terms of average daily spending in Vietnam.
Regretfully, the number of visitors from these top spending countries to Vietnam is too
small. The number of visitors from all four mentioned countries combined is not equal to
the number of Chinese tourists entering Vietnam.
Considering the 5 countries with the lowest per day spending in Vietnam, the order
also changes significantly. In 2007, five countries with the lowest average daily spending
in Vietnam were mostly from Europe: Russia ranked first ($ 47.9 – only equal to 57.4%
of the average); second is Italy (50.9 USD – only 61% of the average); third is
Switzerland (53.6 USD – only 64.2% of the average); fourth is Norway (56.4 USD –
only 67.5% of the average); fifth is the Philippines (64.3 USD – just 77% of the average).
By 2013, the order is in turn: Spain is ranked first (72.3 USD – only equal to 76% of the
general average); second is Belgium (75.1 USD – only 78.4% of the general average);
third is the Netherlands (77.1 USD – only 80.5% of the general average); fourth is China
(84.6 USD – just equal to 88.3% of the average) and the fifth is France (85 USD – just
equal to 88.7% of the average) (GSO, 2016).
To sum up, during the period from 2005 to 2013, Japan, Singapore, Malaysia,
Indonesia always ranked in the top 5 countries with the largest average daily spending of
Sustainable integration in Vietnam’s tourism industry
visitors to Vietnam. Meanwhile, countries such as Belgium, the Netherlands, France and
China always fall in the top 5 countries with the lowest average daily spending of visitors
to Vietnam. Especially for China, with its large quantity of tourists and their lower
spending, it will be difficult to generate income from tourism for Vietnam. Especially in
recent years, China regularly offers 0 USD (free of charge) tours to Vietnam.
Second, the link between the tourism industry, supporting economic sectors and the
people is limited, leading to low operational efficiency.
Third, investment in entertainment services is still low, leading to insufficient to
respond to the current demand and beside new and different types of entertainment, it has
not attracted tourists in practice in relevance to its current capacity, especially the
international tourists.
Fourth, the limitations in terms of natural conditions: such as forest and nature
reserves. Monotonous terrain is not favourable for adventure tourism and nature
discovery.
Fifth, traditional festivals and folk arts are not rich enough: the traditional festivals
and Vietnamese folk arts are not abundant and have not really impressed tourists.
Sixth, offer tourism products and services: there are not many unique and novel
services. Products and services should be innovative, so it needs continuous investment
in innovation and renovation to meet the needs of tourists.
Seventh, tourist facilities and techniques: limited entertainment spots, lack of tourism
attractions, and overall monotony have not met the needs of tourists.
Eighth, the public service system: the public transport system is lacking, the clean
water supply system is not stable in terms of quantity and quality, the public toilet system
has not met the standard of hygiene are some of examples, just to name a few.
Ninthly, price competition: lack of linkage and effective management leads to the
lack of synchronisation, making the overall cost of the trip unattractive to tourists even
though the main costs are discounted like package tour prices.
Tenth, human resources: the quality of human resources is humble, especially their
skills and attitudes are not professional, beside their inadequate and poor social and
business knowledge.
Eleventh, service quality and customer relationship has not been properly managed
and cared for, leading to the poor customer care services, such as managing feedback and
handling tourists’ encountered problems has not really satisfied tourists.
Twelfth, tourism promotion and marketing strategies still show many limitations and
less impressions in organising domestic and international tourism promotions, events,
fairs, festivals, exhibitions and conferences, in addition to the marketing and commercial
information updates. Organisation of events, introductory festivals has not made an
impression on tourists.
Thirteenth, the natural environment management encountered many limitations,
especially in terms of the pollution of water sources and air. The waste is caused and
released by multiple ways: citizens, tourists, tourism companies and service delivery
points.
Acknowledgement
This research is partly funded by Van Lang University, Ho Chi Minh City University of
Food Industry, University of Finance – Marketing, University University of Economics
Ho Chi Minh City (UEH) in Vietnam.
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