The major hindrances to tourism logistics expansion

Do the growth-promoting infrastructure policies in Vietnam adapt to tourism growth?

Samuel Wilson, CEO of TKHS Group Incorporated

From what I hear, there will be improvements in terms of roads and infrastructure. But for me personally, having lived in this country for 15 years, I don’t really see enough major improvement; the number of airports is still limited, and there is still lots of traffic.

Tourism logistics contributes to enhancing visitor experience and satisfaction, retaining and attracting returning visitors, and also creating added value for products and services. The participation of parties such as customers, travel agents, transport companies, and travel service providers plays an important role in tourism logistics.

The government is trying to disburse public investment in infrastructure. Do you think that’s enough to boost tourism?

If the Vietnamese government could open up more and make it easier for investors, I think that would help a lot. Disbursement is definitely going to help a lot. For myself, if I was going to think about coming on holiday to Vietnam and going to Nha Trang, or whatever, footwork would be a big hurdle. If the time to go through the airport and then the bus ride for several hours was much easier and had more modern connections, I would be more likely to come here for a holiday. I think that’s a big factor that will make a difference.

But I think you need to work outside the country to promote it, and maybe do some external marketing. In places likes Singapore, Hong Kong, and Australia.

What is the level of the logistics quality and prices in Vietnam in terms of tourism?

I don’t see any big adaptations so far. There’s no big improvement; I haven’t seen any upgrades in the last 10 years. It’s still pretty much more or less how it was before.

In the past year or so, with the high inflation rate in many countries and life being more difficult for everyone, I think price is definitely something that people are really looking at, and it could be a deciding factor whether they go to Vietnam, Thailand, or Indonesia.

Similar to others like the Philippines or Indonesia, I would say Vietnamese logistics prices are somewhere in the middle. But what I did notice is that air travel, flights, and other things are a little bit expensive, maybe because there’s not so much supply and there are limited flights. That’s why they charge a little bit more.

What are your interests and intentions in the Vietnamese market?

Hotel and casino development is why I invested in Vietnam. We target those types of businesses, especially high-end hotels, to support them in opening their developments.

We want to grow the business right now; we have an office in Ho Chi Minh City but we would like to have an office in Danang and Hanoi too. Plenty of projects are being carried out for new hotels, but we would like to offer more services for the ongoing needs of hotels. Maybe they need warehousing for the distribution of food and beverages from their supplies, for example, so we would like to grow the company in that aspect.

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