Hotel and Tourism Development in Vietnam

Since 1986, the introduction of an economic reform policy, doi moi Vietnam has undergone a transition from a centrally-planned economy to a free-market-oriented economy. Vietnam’s entry into ASEAN in 1995 and the restoration of diplomatic relations with the U.S. are expected to bring a boost to the tourism and hotel industry in the country. Nonetheless, Vietnam is not ready for a large influx of tourists at the moment as there are a number of constraints hindering its development. This paper aims at providing an overview of Vietnam’s tourism industry, its market potential, and challenges during this transition period in the economy. Recommendations for future tourism developments are also presented.