Overview of the Formation and Development Process of Vietnam Tourism

2.2. OVERVIEW OF THE FORMATION & DEVELOPMENT PROCESS OF VIETNAM TOURISM

2.2.1. Period from 1960-1989:

Vietnam tourism began to take shape in 1960. On July 9, 1960, the Government Council issued Decree 26/CP establishing Vietnam Tourism Company (under the Ministry of Foreign Trade) - the predecessor of the General Department of Tourism later.

During the period from 1960 to 1975, Vietnam Tourism Company both consolidated its organization and built facilities to welcome international delegations, mainly from socialist countries, and to provide vacation services for senior officials of the Party and State. In June 1964, the Government issued Directive No. 61/TTg on expanding tourism activities and providing cruise ships. The Directive outlined the development orientation of the tourism industry and the method of tourism business, aiming to expand to serve many international guests. In November 1968, the Government Council issued Decree 145/CP transferring Vietnam Tourism Company from the Ministry of Foreign Trade to the Prime Minister's Office to promote independence and reduce business contacts. On September 12, 1969, the Government Council issued Resolution 94/TTg assigning the Prime Minister's Office's Economic Office and the Ministry of Public Security to study directions for consolidating and developing tourism.

After the complete liberation of the South in 1975, a series of hotels, guesthouses, villas, motels and entertainment facilities of the old regime were assigned by the state to sectors and localities for management. Some southern provinces established tourism companies to manage and operate the assigned facilities. On June 27, 1978, the National Assembly Standing Committee issued Resolution No. 282/NQ-QHK6 approving the establishment of the General Department of Tourism. On January 23, 1979, the Government Council issued Decree No. 32/CP stipulating the functions, tasks, powers and organizational structure of the General Department of Tourism.

During the period from 1975 to 1989, tourism activities were marked by the central planning mechanism, bureaucratic subsidies, only state-owned enterprises were allowed to operate tourism businesses, most of which were loss-making. Although formed in 1960, until the second half of the 1980s, Vietnam tourism was still a little-known economic sector. The number of international visitors was too small, mainly from Eastern Europe and some countries under the socialist system. Tourism technical facilities were poor and outdated. In the Vietnam Tourism Development Directive Plan for the period 1991-2005 (project VIE/89/003) by the World Tourism Organization, the Tourism Development Program

The United Nations Development Program and the Institute for Tourism Development Research jointly established that Vietnam's tourism is twenty years behind that of Southeast Asian and Australian countries due to the small number of international visitors and low international standard hotel room capacity. The number of international visitors to Vietnam in 1989 reached 187,573, accounting for 1.3% of the total international visitors to Southeast Asia, only 1/9 of Indonesia, 1/25 of Thailand.

2.2.2. Period from 1990 -1999:

In early 1990, stemming from the need to transform the economic mechanism, reorganize production and business, and reduce management agencies, the General Department of Tourism was merged into the Ministry of Culture, Information, Sports and Tourism. In April 1990, the Vietnam National Administration of Tourism was established. In 1991, Tourism was merged into the Ministry of Trade and Tourism. In January 1992, the Council of Ministers issued Decree 37-HDBT on tourism business management regulations. This was the first important legal document that created the premise for diversifying economic sectors participating in tourism business.

Article 42 of the 1992 Constitution of the Socialist Republic of Vietnam clearly stated that “The State and society shall develop tourism, expand domestic and international tourism activities”. In October 1992, the Government decided to establish the General Department of Tourism as an agency under the Government. In December 1992, the Government issued Decree 20/CP stipulating the functions, tasks, powers and organizational structure of the General Department of Tourism. This was an important turning point in perfecting the state management agency for tourism, creating a premise to promote the development of the tourism industry in the period from 1992 to present.

In June 1993, the Government issued Resolution No. 45/CP on innovation in management and development of the tourism industry, which identified “Tourism as an important economic sector in the country's socio-economic development strategy” {34, p37} . Resolution 45/CP created a turning point for the tourism industry, marking a change in perception of the position of the tourism industry in socio-economic development, meeting the objective requirements of the cause of national construction in the new period. Also in 1993, the Government issued a Decision to establish Departments of Tourism and Decision 317/QD-TTg on converting guest houses and motels into tourism businesses. In February 1994, the Government issued Decree 09/CP on the organization and management of tourism enterprises. These were breakthrough decisions, creating the basis for the formation of a State management apparatus for tourism.

tourism from central to local levels and create material premises to promote market-oriented tourism development.

In October 1994, the Secretariat of the 7th Party Central Committee issued Directive No. 46/CT on leadership in innovation and tourism development in the new situation, which affirmed that "tourism development is an important strategic direction in the socio-economic development policy to contribute to the industrialization and modernization of the country" {34, p. 12}. The issuance of this Directive demonstrated the high consensus on the policies and orientations for tourism development of the Party and the State, enhancing awareness of the position of the tourism industry in the economic, cultural and social life of our country.

In May 1995, the Government issued a Decision approving the Master Plan for Vietnam Tourism Development for the period 1995-2010. This is the basis for localities to carry out detailed planning for tourism development in their localities. To complete the organizational structure of the General Department of Tourism, in August 1995, the Government issued Decree 53/CP on the organizational structure of the General Department of Tourism, which adjusted and established a number of Departments and affiliated units. During the period 1994-1996, the General Department of Tourism issued a number of legal documents such as the Regulations on Travel Management, Regulations on Management of Tourist Accommodation Establishments, Regulations on Standards for Ranking Tourist Hotels, Regulations on Tour Guides, Regulations on Participation in Foreign Fairs, creating a legal corridor for tourism activities.

In November 1998, the Politburo issued a Conclusion Notice (No. 179-TB/TW) on tourism development in the new situation, guiding tourism development in a turning point period of the Vietnamese tourism industry. In February 1999, the Tourism Ordinance was issued, the State Steering Committee on Tourism was established. In April 1999, the Government approved the National Action Program on Tourism. The above policies and guidelines have created a driving force to promote vibrant and developing tourism activities, overcoming the negative impacts of the financial and monetary crisis in the region.

In general, the period 1990-1999 was the period when the Party and the State promoted the renovation, opening up and integrating with the outside world, so the tourism industry had the opportunity to develop. The number of international visitors to Vietnam during this period increased rapidly. According to the General Department of Tourism, in 1990, our country welcomed 250,000 international visitors, by 1999 it welcomed over 1.78 million, an average annual increase of 26.5%. Revenue.

Revenue from tourism increased rapidly, from 2,940 billion VND in 1990 to nearly 15,600 billion VND in 1999. Budget contribution increased from over 200 billion VND in 1990 to 765 billion VND in 1999. Direct employment in the tourism sector increased from 17,000 in 1990 to 150,000 in 1999.

2.2.3. Period from 2000 to present:

During the 2000-2001 period, along with the implementation of the National Action Program on Tourism, the Government issued Decrees guiding the implementation of the Tourism Ordinance such as Decree 27/2001/ND-CP on travel business and tourism guidance, Decree 39/2001/ND-CP on tourist accommodation establishments, Decree 50/2001/ND-CP on administrative sanctions in the tourism sector. The General Department of Tourism issued Circulars guiding the implementation of the above Decrees.

In 2001, the Resolution of the 9th National Party Congress determined that “Tourism development must truly become a spearhead economic sector” {45, p. 178}. To implement the Resolution of the 9th Congress and the requirement of rapid and sustainable development in line with the orientation of the country's socio-economic development strategy for the period 2001-2010, the Prime Minister approved the Vietnam Tourism Development Strategy for the period 2001-2010 and orientation to 2020. This is an important basis for orienting the implementation of planning, plans and solutions to promote tourism development in the first decade of the 21st century.

After summarizing the National Action Program on Tourism and Vietnam Tourism Events in 2000, the Government approved the National Action Program on Tourism for the period 2001-2005 to continue promoting tourism development, creating a qualitative change in tourism activities. In June 2005, the 11th National Assembly passed and the President signed an order to promulgate the Law on Tourism, effective from January 1, 2006. Currently, the General Department of Tourism is focusing on developing a Decree guiding the implementation of the Law on Tourism to submit to the Government for promulgation. However, the development of this document is still very slow, so the Law on Tourism has not really come into life.

The General Department of Tourism has summarized the National Action Program on Tourism for the period 2001-2005, then submitted to and received approval from the Government for the National Action Program on Tourism for the period 2006-2010. The Resolution of the 10th National Party Congress determined “Encouraging investment in development and improving the quality and efficiency of tourism activities, diversifying tourism products and types ”. This is the major orientation of our Party to develop tourism effectively and sustainably.

In general, in the period from 2000 to present, Vietnam's tourism industry is facing new opportunities for development and integration with global and regional tourism, while also facing new difficulties and challenges due to political and economic fluctuations, ethnic and religious conflicts, terrorism, epidemics and natural disasters in the world. However, Vietnam's tourism industry continues to grow rapidly. In 2000, our country welcomed 2.14 million international visitors, by 2005 it welcomed over 3.478 million, an average annual increase of 27%. Tourism income also increased from 17.4 trillion VND in 2000 to 30 trillion VND in 2005, an average annual increase of 29%. Infrastructure in major tourist centers and many tourist destinations has been invested in and upgraded quite quickly. The quality of tourism products and services has been improved. Many high-end hotels and tourist areas have been built, creating a new look for Vietnamese tourism.

2.3. RESOURCES OF VIETNAM TOURISM

2.3.1. Inherited resources:

2.3.1.1. Natural resources:

Vietnam's natural resources are very rich. The diverse characteristics of the terrain structure of islands, plains, mountains, and plateaus have made our country's territory rich in landscapes and ecosystems of flora and fauna, especially the ecosystems of rivers, lakes, seas, islands, forests, caves, etc., which are great potential for tourism development.

Our country is one of the countries with the longest coastline in Asia. With over 3,260 km of coastline, over 100 beaches and many beautiful islands along the coast, our country has many favorable conditions for developing many types of sea tourism such as beach resorts, swimming, water sports and entertainment. The famous beautiful beaches are mainly located in the Central and South Central regions such as Lang Co, Canh Duong, Non Nuoc, Van Phong, Dai Lanh, Nha Trang, Ninh Chu, Mui Ne. The topographical features of our country's coastal areas create many beautiful bays with great potential for tourism development such as Ha Long Bay, Bai Tu Long, Nha Trang, Van Phong, Cam Ranh, of which Van Phong Bay is considered an ideal sea tourism destination of the 21st century (project VIE/89-003), Nha Trang Bay is ranked in the Club of 500 most beautiful bays in the world and Ha Long Bay with thousands of islands creating extremely majestic landscapes has been recognized by UNESCO twice as a world natural heritage. Among nearly 3000 coastal islands, many islands have rich ecosystems and beautiful landscapes such as Cat Ba, Co To, Quan

Lan, Cu Lao Cham, Phu Quy, Con Dao and Phu Quoc can form particularly attractive island tourist destinations.

The dense river system and deltas are also great tourism potentials. The Red River Delta and the Mekong River Delta are the two largest deltas with the highest population density and are also the two rice granaries of the country. The rice fields stretching as far as the eye can see, the images of farmers in the rice fields, and children herding buffaloes in the grasslands have created unique attractions for international tourists.

The terrain of our country is mostly mountainous, which has created many areas with famous natural beauty and is a favorable opportunity for developing recreational tourism in the highlands such as Sapa, Bac Ha (Lao Cai), Tam Dao (Vinh Phuc), Mau Son (Lang Son), Ba Vi (Ha Tay), Bach Ma (Thua Thien Hue), Ba Na (Da Nang), Dan Kia - Suoi Vang, Da Lat (Lam Dong), Mang Den (Kon Tum). At the same time, the mountainous areas are also home to ethnic minorities with many unique and attractive cultural practices.

With about 50,000 km2 of karst terrain , our country has great potential for cave tourism.

caves, natural waterfalls, of which more than 200 caves have been discovered, typically Phong Nha Cave has been recognized by UNESCO as a world natural heritage. Mineral water and hot springs are also abundant, up to now, our country has discovered more than 400 natural mineral water sources with temperatures from 27ºC-105ºC with diverse chemical compositions, high mineralization, valuable for developing medical resort tourism.

Our country has a diverse ecosystem of forest flora and fauna. To date, the country has over 100 special-use forests, including about 20 national forests, over 50 nature reserves and over 30 cultural and historical forests with a total area of over 2 million hectares. This is a valuable natural resource, where 14,624 species of plants are preserved,

15,575 animal species, many of which are endemic and rare. Notably, of the five new mammal species discovered in the world in the first few years of the 21st century, four were discovered in our country, namely the large-antlered muntjac, the small-antlered muntjac, the Central Highlands spiral-horned ox, and the saola. Can Gio Biosphere Reserve and Cat Ba National Park have been ranked by UNESCO as world biosphere reserves. Ba Be National Park has a natural lake that is considered one of the world's largest and is preparing a dossier to request UNESCO to recognize it as a world natural heritage.

2.3.1.2. Human resources :

Besides natural resources, our country has diverse human resources. Vietnam today is a cultural gathering of 54 ethnic groups with diverse identities, orthodox in history, traditions, lifestyles and customs. Moreover, our country has many historical and cultural relics throughout the country. Among the approximately

40,000 relics, of which more than 2,500 have been officially classified by the State as having important heritage value, including relics associated with long-standing dynasties (Hue ancient capital relics, Hoa Lu ancient capital relics, Ho Dynasty Citadel, Thang Long Imperial Citadel, ...), religious relics (communal houses, temples, pagodas, shrines, churches), war relics, ancient battlefields (Dien Bien Phu, Vinh Moc Tunnels, Quang Tri Citadel, Cu Chi Tunnels, ...). The complex of Hue ancient capital relics, Hoi An ancient town and My Son relic site have been recognized by UNESCO as world cultural heritages.

In addition to historical revolutionary relics, there are many traditional craft villages throughout our country, most of which are concentrated in the Northern Delta. Ha Tay has hundreds of famous craft villages and is considered the capital of Vietnamese craft villages. Many craft villages have become popular destinations for international visitors such as Bat Trang ceramic village, Van Phuc silk weaving (Ha Dong), Ngu Hanh Son stone casting (Da Nang), etc. Craft villages can be said to be one of the great potentials for tourism development in the future.

In addition to tangible cultural heritage, our country also has many unique intangible cultural heritages. Unique forms of national cultural and artistic culture such as folk songs of the three regions, betel and betel literature, folk songs, Tuong, Cheo, Cai Luong, Don Ca Tai Tu and traditional national musical instrument performances are valuable cultural treasures of the nation. Hue royal court singing and dancing, the space of gong culture in the Central Highlands have been recognized by UNESCO as masterpieces of intangible oral culture of humanity. In addition, many unique customs, lifestyles, folk festivals of 54 ethnic groups along with the unique and sophisticated features of culinary arts are blended and interwoven on the background of landscape architecture with Eastern philosophical values, which are strengths for tourism development.

In general, Vietnam's tourism resources are rich and diverse, highly attractive and of great significance in enhancing competitiveness to attract tourists and promote Vietnam's tourism development in the coming time.

2.3.2. Creative resources:

2.3.2.1. Tourism infrastructure and technical facilities for tourism:

- The number of accommodation rooms in Vietnam has increased rapidly in recent times . In 1992, the whole country had only over 13,050 accommodation rooms, by 2005 it had reached 95,700 rooms, an increase of over 7 times compared to 1992. See diagram 2.1:

95700

74700

55760

26000

13050

120000

100000

80000

Number of rooms

60000

40000

20000

1992 1995 2000 2002 2005

DIAGRAM 2.1. NUMBER OF ROOMS IN TOURIST ACCOMMODATION FACILITIES IN THE PERIOD 1992-2005 (Source: TCDL, 2005)

- Regarding the quality/type of accommodation facilities: By the end of 2005, the whole country had 927 high-class hotels and resorts ranked from 1 to 5 stars with a total number of rooms of 36,687 rooms, accounting for only more than 1/3 of the total number of accommodation rooms in the whole country. 3-5 star hotels only accounted for approximately 50% of the total number of rooms listed above. See table 2.2:

TABLE 2.2. 1-5 STAR HOTELS IN VIETNAM AS OF 2005

Hotel class