Summary of doctorial (PH d) thesis in economics tourism economy in the north central region in international economic integration

HO CHI MINH NATIONAL ACADEMY OF
POLITICS AND PUBLIC ADMINISTRATION

NGUYEN THI HONG LAM
TOURISM ECONOMY IN THE NORTH CENTRAL
REGION IN INTERNATIONAL ECONOMIC
INTEGRATION
Specialism : Political economics
Code : 62 31 01 01
SUMMARY OF DOCTORIAL (PhD) THESIS IN ECONOMICS
HA NOI – 2013
The thesis is completed at the
Ho Chi Minh National Academy of
Politics and Public Administration
Academic Supervisor: Assoc. Prof. Dr. An Nhu Hai
Judge 1:
Judge 2:
Judge 3:
The thesis will be defended in front of a panel of examining judges at
Ho Chi Minh National Academy of Politics and Public Administration
At date month 2013
The thesis is available at: National Library
and Library of the Ho Chi Minh National Academy of
Politics and Public Administration
1
INTRODUCTION
1. The necessity of the research
Tourism is a synthetic industry which is highly intersectoral, interregional and
socialised. Performances of this industry not only meets the rising demand for travel
of human beings but also plays an essential role in the ”on-the-spot export” of goods
and services abroad.

In Vietnam, the tourism industry came into being in 1960, however, until
1990s it was regarded as an economy soon after the country’s open door policy. Since
then, the tourism economy has grown rapidly and attained certain encouraging
achievements.
The North Central region is an economic zone consisting of Thanh Hoa, Nghe
An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue provinces, abounding in
many valuable tourism potentials with diverse natural wonders and cultural identities.
On the other hand, favourable traffic conditions regarding road, rail and waterway
transport facilitates the region’s tourism economy to bring into full play its
advantages and attract tourists.
Over the past years, tourism economy in the North Central provinces has made
a remarkable growth. Nevertheless, the current development of the tourism economy
remains limited in regard to demands for international economic integration and the
region’s potential. The matter here is how to tap into full potential and advantages of
the tourism economy in the whole region to satisfy the demands for international
economic integration to bring about high socio-economic effects? Under such
circumstances, that the PhD candidate chooses the topic: “Tourism economy in the
North Central provinces in international economic integration” which is of not
only theoretical but also practical significance to the development of tourism
economy in the North Central provinces in the coming time.
2. Purpose and task of the research
- Purpose: To accelerate the development of tourism economy in the North
Central provinces in the context of Vietnam’s deeper and greater integration in
international economic relations from the point of political economics.
- Task: 1) To systemize theoretical and practical foundations of tourism
economy in international economic integration of a certain territory in Vietnam from
the point of political economics, 2) To evaluate the reality of tourism economy in
international economic integration in the North Central provinces, and 3) To propose
directions and solutions to promote the development of tourism economy in the North
Central provinces in international economic integration.

3. Subject and scope of the research:
2
- Subject of the research: All business activities related to tourism economy in
the North Central provinces in international economic integration.
- Scope of the research:
+ Space: The thesis studies tourism economy in the North Central provinces
from economic approaches. The thesis does not study each province individually but
considers each province’s tourism economy as a component of tourism economy of
the whole North Central region.
+ Time scope: The situation of tourism economy from 2000 to the present;
directions and solutions to 2020 with a vision to 2030.
4. Theoretical foundations and research methods of the thesis
- Theoretical foundations:
The Marxism - Leninism, Ho Chi Minh ideology, and standpoints, paths,
renewal policies of the Party and State of Vietnam in regard to tourism economy
development.
- Research methods:
+ Research methods applied include abstractisation, analysis and synthesis, and
logic plus historical background, statistical method, quantitative analysis, and comparative
method; and selectively acquires some results of published scientific studies.
5. Scientific contributions and values of the thesis
1) Systemizing theories of tourism economy in international economic
integration in a certain tourism area in Vietnam from the perspective of political
economics. 2) Selecting lessons drawn from foreign countries’ experience in
developing tourism economy to refer to the case of Vietnam in general and the case
of the North Central region in particular. 3) Assessing the situation of tourism
economy, the thesis analyzes achievements and shortcomings of tourism economy in
the North Central provinces in international economic integration.
6. Conclusion
Besides the introduction, conclusion, list of reference, and appendix the thesis

comprises four chapters and eleven sections.
Chapter 1
OVERVIEW OF RESEARCH ON TOURISM ECONOMY
1.1. FOREIGN STUDIES ON TOURISM ECONOMY
A number of typical foreign researches focusing on tourism and tourism
economy include: 1) The book “Tourism in Developing Countries” by Martin
Oppermann and Kye - Sung Chon, was published in 1997 by International Thomson
Business Press. 2) The research:“The Business of Rural Tourism International
Perspectives” by co-authors Stephen J. Page and Don Getz, was printed by
International Thomson Business Press in 1997. 3) The research: “Commercial
3
Recreation & Tourism - An Introduction to Business Oriented Recreation” by Susan
A.Weston, was printed in 1996 by Brown & Benchmark. 4) The research: “Managing
Tourism” was written in 1991 by Prof. S. Medlik and reprinted in 1995 by
Butterworth - Heinemann. 5) The work: “The Economics of Leisure and Tourism” by
John Tribe was published by Butterworth - Heinemann Ltd in 1995, etc.
1.2. DOMESTIC RESEARCHES ON TOURISM ECONOMY
1.2.1. Scientific researches and PhD theses
There has been a great number of researches on tourism and tourism economy
in Vietnam so far. Regarding these areas, it should be noted the scientific researches
and PhD theses as followed: 1) Ministerial-leveled work (2007): “Research develops
Vietnam’s tourism products of high competitiveness in the region and in the world”,
is carried out by a group of authors, led by Dr. Do Cam Tho, from the Institute for
Tourism Development Research. 2) Ministerial-level research (2008):“Scientific
ground to develop coastal tourism in the North Central region”, is carried out by a
group of authors led by Assoc Prof. and Dr. Pham Trung Luong of the National
Institute for Tourism Development Research. 3) Ministerial-level research (2011)
“The status quo of and solutions to develop national sea tourism regions in the North
Central region”, is carried out by a group of authors led by Dr. Nguyen Thu Hanh, of
the Institute for Tourism Development Research. 4) The Vietnam National

Administration of Tourism’s research: “Policy and solutions to promote tourism
development in the central and Central Highlands region” (2001). 5) The report:
“Master plan on tourism development in the North Central region to 2020, with a
vision to 2030” (2012) by the Ministry of Culture, Sports and Tourism. 6) Thesis of
economics by Hoang Thi Ngoc Lan of the Ho Chi Minh National Academy of
Politics and Public Administration, Ha Noi (2007), “Ha Tay’s tourism market”, etc.
1.2.2. Researches in the form of books and other publications
Among these publications, those focusing tourism and tourism economy so far
include: 1) The book “Tourism market” by Nguyen Van Luu, Ha Noi National
Publishing House, 2009. 2) The “Tourism economy syllabus” book is written by Prof.,
Dr. NguyenVan Dinh and Assoc. Prof., Dr. Nguyen Van Dinh and published by the
National Economics University, Ha Noi, in 2008. 3) The “Travel Business
Management Syllabus” text book by co-authors Assoc. Prof., Dr. Nguyen Van Manh
and Assoc. Prof., Dr. Pham Hong Chuong, National Economics University’s
Publishing House, Ha Noi, 2009, etc. In addition, on the national scientific research
forum there are numerous articles related to tourism economy in the context of
international economic integration, notably: “Tourism Development in the North
Central Region: Issues raised”(2010) by Assoc. Prof., Dr. Pham Trung Luong at the
workshop on “Orientations of Tourism Development in the North Central Region”
4
organised in Vinh City, Nghe An Province. “Tourism Development in the Greater
Mekong Subregion” (2010) by Dr. Nguyen Van Dung and MA Nguyen Tien Luc,
Vietnam Tourism Magazine, 10
th
edition. “Tourism Development in the Greater
Mekong Subregion” (2010) by Dr. Nguyen Van Dung and MA Nguyen Tien Luc,
Vietnam Tourism Magazine, 10
th
edition, etc.
1.3 GENERAL RESULTS OF PUBLISHED STUDIES AND ISSUES

RAISED FOR FURTHER STUDY ON TOURISM ECONOMY
1.3.1. General results of published studies associated with tourism
economy
The authors focus on key issues as followed: 1) The authors define fundamental
characteristics of tourism economy with comprehension related to tourism economy:
concept of tourism, tourism economy, ecotourism, tourists, competition ability of
tourism destination, tourism human resources, State management of tourism economy,
etc. 2) Characteristics, situation, and development trends of tourism economy in
nations all over the world at present. 3) The authors analyse, specify tourism products,
tourism product mechanism, the role of components of tourism products, the role of
tourism economy to the socio-economic development of the nation and regions in
regards to component factors of tourism supply and demand. 4) The reality of tourism
market in some cities and provinces in Vietnam. 5) Numerous solutions to diversify
and increase the quality of tourism products in some provinces in Vietnam.
Nevertheless, in regards to theory, published scientific researches have not
specified concepts of tourism economy from the perspective of political economics,
and typical features of tourism economy; have not analysed systematically
components of tourism economy, the relation between tourism economy and socio-
economic development, and factors influencing tourism economy in the international
economic integration. The researches have not analysed to the full opportunities and
challenges of the international economic integration to Vietnam’s tourism economy
in general and to the North Central region’s tourism economy in particular.
Regarding practical approach, the researches have not mentioned to the full
and comprehensively the reality of tourism economy in the North Central region. The
authors have not analysed comprehensively the new economic context of tourism
economy in the North Central provinces in the international economic integration.
Also, the authors have not presented systematically targets, orientations, and
solutions to develop tourism economy in the North Central provinces in the context
of international economic integration.
In order to help with addressing the problem, the subject: “Tourism Economy

in the North Central Provinces in International Economic Integration” that the
postgraduate has chosen to study is new, and of theoretical and practical significance.
5
1.3.2. Issues raised for further study: 1) Specifying theories of tourism economy
and tourism economy development in the new context of national and international
situations, and international economic integration from the perspective of political
economics. 2) Studying lessons of success and unsuccessfulness from nations world-
wide on the current tourism economy development in the international economic
integration to draw valuable lessons of experience for Vietnam in general and for the
North Central region in particular to learn from. 3) Specifying the reality of tourism
economy in the North Central provinces and indicate strengths and limitations in the
development process of this economic sector to propose objectives, orientations, and
solutions to accelerate development in the time to come.
Chapter 2
THEORETICAL AND PRACTICAL GROUNDS OF TOURISM ECONOMY
IN INTERNATIONAL ECONOMIC INTEGRATION
2.1 TOURISM ECONOMY AND COMPONENTS OF TOURISM
ECONOMY
2.1.1 Tourism and tourism economy
2.1.1.1 Tourism
 Conception
From the perspective of political economics, and views it as the general of
phenomena and economic relations which arise from the mutual influences between
tourists, tourism businesspeople, local authorities, and local community in the
process of attracting and retain tourists. Tourism is an activity of many specific
characteristics with many participating components, thus, making itself a very
complicated general. Tourism operation bears both characteristics of an economic
sector, and of an economic-social sector.
 Tourism product and its typical features
Tourism products are “services and commodities provided to tourists are

produced through the combination of exploiting natural and social factors with
material and technical facilities as well as labour forces in an establishment, a region
or a country.
Characteristics of tourism products: Apart from common features of ordinary
commodities, tourism products are characterised by special features as followed:
Firstly, once an ordinary commodity is sold to a buyer its values will vanish slowly or
even be lost after the first use, whilst the values of tourism products are not. The
tourism products’ values will exist in the feelings and evaluations of tourists and the
values can even be acknowledged through the tourists’ words of mouth. Secondly, the
consumption of tourism products does not occur regularly but during certain time in a
day (in regards to products offered at a restaurant), in a week (in regards to products
6
offered at the year-end tourism season), during a year (in regards to products of some
tourism categories: mountain tourism, and beach tourism, etc ). It is the very these
characteristics that tourism is a highly seasonal operation.
In facts, in the tourism product mechanism, tourism services make up a
considerable percentage (about 80-90%), therefore, it is extremely important to find
out about and properly assess characteristics of tourism products.
 Tourism service and its typical features
Tourism service is “the supply of services on travel, transport, accommodation,
food and beverage, amusement, recreation, information, guidance, and other services
to meet the demands of tourists.
Tourism is a type of services which contains common features of services and
typical features of its own: the intangibility of services, the synchronism of tourism
service production and consumption, the involvement of tourists in the production of
services, the immovability of tourism services, the ownership unchangability of
tourism services, and the unequability of the quality.
 Types of tourism
Depending on different modes of classification, tourism can be classified as
follows: 1) In regard to territorial scope of travel, tourism is divided into international

and domestic tourism. 2) In regard to tourists’ demands, tourism can be: medical
tourism, recreational and relaxation tourism, excursions tourism, sports tourism, MICE
(meetings, incentives, conference, and exhibitions), and spiritual tourism, etc. 3) In
regard to geographical position of the destination: mountain tourism, beach tourism,
river tourism, lake tourism, city tourism, and countryside tourism. 4) In regard to
means of transport facilitating tourists’ travel: tourism by bicycle, motorbikes,
automobiles, train, and airplane. 5) In regard to the tour organisation, tourism is
divided into group and individual tourism. 6) In regard to the length of tourists’
travel, tourism is divided into short-day and long-day tourism, etc.
2.1.1.2. Tourism economy
Tourism economy is an economic relation in the field of tourism product supply
and consists of relations among travel business, tourism lodging service business,
tourism transport business, tourism area and tourism spot development, and other
tourism services business in order to satisfy the spiritual demand of tourists and bring
bout significant social, economic and political benefits for the tourism enterprises and
the country. Tourism economy is a non-smoke industry and a nonmaterial production
area but brings about huge material and spiritual values.
Tourism economy is a service industry with typical characteristics: being
sensitive, highly synthetic, multidisciplinary, multi-sector, expenditure-oriented,
interregional and seasonal. On the basis of the objectives of tourism businesses in the
7
world in general and the Law of Tourism in Vietnam in particular, indicators to evaluate
tourism economy may include: tourists, earnings from tourists, tourism industry’s
gross products, and tourism economy effects, etc.
2.1.2. Tourism economy components
Tourism economy is a synthetic industry consisting of relations between such
major sectors and businesses as follows:
2.1.2.1. Travel business
In fact, related to the travel business, tourism experts often mention major
operations as “trading and signing business contracts with internal and external

tourism business organisations to build and implement tours which have been sold to
tourists”. However, the fact indicates that the travel business mainly involves the two
popular operations: travel business and travel agency business.
2.1.2.2. The business of tourism accommodation
Accommodation establishments are those who rent out bedrooms to tourists
and provide other services to satisfy tourists’ demands during their stay, in which
hotel is the most popular type of lodging. Accommodation business is one of
important sectors contributing considerable income for tourism economy.
2.1.2.3. The business of tourist transportation
The business of tourist transport is an operation enabling tourists to move from
their living place to a tourism site as well as to move within the tourism site. There is
a number of means of transport available to serve this business, namely automobiles,
train, ships, and airplane.
2.1.2.4. The business of tourism area and tourism site development
The business of tourism area and tourism site development takes into account:
the investment to preserve and upgrade available tourism resources; tapping the full
potential of available tourism resources for development new tourism area and site;
and building tourism infrastructure, and material and technical facilities.
2.1.2.5. The business of other tourism services
Apart from business operations mentioned above, tourism economy
components also include the business of recreational activities, advertisement,
promotion, and tourism investment consultancy, etc.
2.2. THE RELATIONSHIP BETWEEN TOURISM ECONOMY AND
SOCIO-ECONOMIC DEVELOPMENT AND FACTOS AFFECTING
TOURISM ECONOMY IN INTERNATIONAL ECONOMIC INTEGRATION
2.2.1. The relationship between tourism economy and socio-economic development
2.2.1.1. The influence of tourism economy on socio-economic development:
1) The development of tourism economy contributes to enhancing the economic
growth; 2) Tourism economy develops will advance the transition of the national
8

economic structure; 3) The development of tourism economy contributes to boosting
domestic and foreign investment, which eventually increases the whole economy’s
total demand; 4) The development of tourism economy contributes to promoting and
developing other economic relationships including the relations in investment co-
operation, production co-operation, trading, and services between economic subjects
and components; 5) The development of tourism economy increases social
employment and income; 6) The attraction and expansion of international tourists, the
development of tourism economy will be a vital information channel to promote the
host country’s images.
2.2.1.2. The socio-economic impacts on the development of tourism economy:
The development of economic sectors like industry, agriculture and handicrafts, etc
will help improve the society’s material-technical facilities, contributing to enhancing
the quality of services in the chain of tourism services. The development of social
sectors such as culture, education, and health, etc will promote the attractiveness, and
competitiveness of destination brands for tourism economy. Other sectors including
telecommunications, electronics, traffic and transport, etc develop will help promote
tourism brand names, introduce tourism products, and connect tours for tourism
economy. Other service sectors including finance, banking, securities and insurance,
etc, if well-developed, will be a major supporting force for the development of
tourism economy. Thus, the general socio-economic development will help enhance
the infrastructure, intellectual standards of people, and convenient services, etc,
speeding up the development of tourism economy.
2.2.2. Factors affecting tourism economy in the international economic
integration
2.2.2.1. The State role in tourism economy development
* The State creates the socio-economic and political environment.
Political environment is presented first and foremost through the nation’s
system of legislation, policy and institution. A peaceful and stable politics will be an
important premise for the country’s development in general and the development of
tourism economy in particular.

The socio-economic environment of tourism economy is presented through the
development level of sectors and the labour output of the home country. Tourism
economy is a synthetic industry, thus, it can only develop when other industries
develop.
* The State maps out development strategy and planning for tourism economy.
Tourism economy development strategy is a component of the State and Party’s
socio-economic development strategies. It is a tool to provide a long-term vision of
the performance of tourism economy in a particular period of time.
9
Tourism planning is a collection of theoretical and practical foundations to be
involved in collective or separate tourism sites associated with the investment and
production process. If tourism planning is done well, this will help increase tourism
benefits and minimise negative effects that tourism economy may have on local
communities and enterprises.
2.2.2.2. Potentials of resources for tourism economy development
The potentials of resources for the development of tourism economy includes
tourism resources, financial resources, and human resources for tourism performance.
Tourism resources are essential to the scale, quality and the uniqueness of
tourism products. The richer and more diverse tourism resources are, the more they
absorb tourists both internally and externally.
Human resources for tourism: If a nation or an enterprise builds up a high-
quality human resource, this is an essential factor to create tourism products of high
quality, promoting the competitiveness of the tourism destination in general and of
each enterprise in particular.
Capital resource is of significant influence on the development of tourism
economy. Tourism economy is competitive and appealing to tourists or not, largely
depending on the modernity of material and infrastructure facilities and tourism
accommodation establishments. The modernity of material and infrastructure
facilities and tourism accommodation establishments completely relies on the scale
and efficient usage of investment capital.

2.2.2.3. The scale and quality of suppliers of tourism products and services
The quantity, scale and quality of suppliers of tourism products and
services have an important affect on the development of tourism economy. If
tourism enterprises provide products and services seasonal, suitable to tourist tastes
with a competitive price will certainly appeal to tourists and be able to keep them stay
longer. In addition, if tourism enterprises co-exist and develop will create a fair
competition to promote the quality of services.
2.2.2.4. International economic integration and its impacts on tourism economy
- International economic integration is a process nations initiatively connect
their own economy with the regional and international economies through efforts to
liberalise the economy and mitigate the difference to become an integrated part of the
global economy.
- International economic integration creates both opportunities for a nation to
develop tourism economy and challenges in the development process.
+ Opportunities: i, opportunity to increase international tourism share; ii,
opportunity to reform; iii, opportunity to expand the market and develop new forms
of tourism; iv, new competition opportunities for tourism economy in countries all
over the world; v, opportunity to build an efficient supporting policy system, etc.
10
+ Challenges: i, to conserve traditional cultural values; ii, to increase
environmental pressure; and iii, fiercer competition, etc
2.3. FOREIGN EXPERIENCE IN TOURISM ECONOMY
DEVELOPMENT THAT VIETNAM IN GENERAL AND THE NORTH
CENTRAL PROVINCES IN PARTICULAR CAN LEARN FROM
2.3.1. The State pays attention to developing tourism economy, regarding it as
a non-smoke industry: i, the role of tourism economy in socio-economic development
policy should be seriously considered; ii, a country should have national policies for the
development of tourism economy and highly regard tourism economy strategies.
2.3.2. Experience in programming tourism promotion and marketing
activities: i, well implement strategies of marketing and promoting products and

destinations; ii, attach much importance to investment for tourism promotion
strategies.
2.3.3. Experience in training human resources for tourism economy: i,
attaching much importance to foster and use tourism human resources; ii, paying due
attention to training professional tour guides.
2.3.4. Construct and diversify tourism products: i, bringing into full play
cultural values, faiths, and other attractions in constructing tourism products; ii,
attaching much importance to enhancing the competitiveness of tourism products; iii,
establishing and developing tourism products are prioritised in the tourism economy
development strategy; iv, attaching much importance to supplying supportive services
for tourism economy; v, experience of an excellent tourism operator, etc.
2.3.5. Experience from association and co-operation in tourism economy
development: Those with a developed tourism industry like Singapore and Thailand,
etc have associated and co-operated with each other for many years. They work
together to link tours and to produce typical and special tourism products for each
nation, lower tour price and create a level competitive price, etc to attract
international tourists.
2.3.6. Experience of visa waiver for tourists, creating a stable political
environment, ensuring security and safety of tourists: Visa waiver for tourists is a
strategic policy to attract international tourists. On the other hand, political stability,
peace and clean ecological environment are ideal conditions for tourist attraction.
These experiences are precious lessons for not only Vietnam but also the North
Central provinces, which they should and need to learn from for the development of
tourism economy in the international economic integration. Nevertheless, Vietnam in
general and the North Central provinces in particular should pay attention to special
characteristics of their own to put forward proper development policies to bring about
the desired effects for tourism economy.
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Chapter 3
REAL SITUATION OF THE TOURISM ECONOMY IN THE NORTH

CENTRAL REGION IN INTERNATIONAL ECONOMIC INTEGRATION
3.1. IMPACTS OF NATURAL AND SOCIO-ECONOMIC CONDITIONS
IN THE NORTH CENTRAL PROVINCES ON THE DEVELOPMENT OF
THEIR TOURISM ECONOMY
3.1.1. Natural and socio-economic conditions in the North Central
provinces
3.1.1.1. Natural conditions
The North Central Region is narrow, in terms of its horizontal line. The region
is located between the Tam Diep mountain range in the North and the Bach Ma
mountain range in the South which is the natural border between the region and the
Costal South Central Region. The region, consisting of six provinces, namely Thanh
Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri and Thua Thien – Hue, is 52,534.2
square kilometres in area. To the West, the region is bordered by the Truong Son
mountain range, while to the North it borders the Lao People’s Democratic Republic.
Vietnam’s North-West Region and the Red River Delta are also on the North of the
region. To the South, it borders the Costal South Central Region, while the East Sea
is on the East of the region. The region is rather rich of natural tourism resources as
well as humanity tourism resources, favourable for tourism economy development.
3.1.1.2. Socio-economic conditions
With a population of approximately 16,556,700 people, there have been positive
changes in the region’s socio-economic development in recent years. All achievements
have been made in the field of socio-economy, national defence and public security. As
a result of market-oriented adjustments of economic structure, private and foreign
invested sectors represented a higher ratio while that of state-own (at both central and
local levels) and collective sectors was lower. In addition to the adjustments of
economic structure, labour force structure has been reformed accordingly.
3.1.2. Advantages and limitations from natural and socio-economic
conditions for development of tourism economy in the North Central provinces
3.1.2.1. Advantages
The North Central region has a rich and diversified tourism potential representatives

of which are 6 world heritage sites, recognised by the UNESCO, namely ancient
imperial city of Hue, Phong Nha – Ke Bang National Park, the Royal Refined Music
of Hue, Ho Dynasty Citadel. In addition, the woodblocks of Nguyen Dynasty are also
recognised by UNESCO as a “World Documentary Heritage”.
3.1.2.2. Limitations and disadvantages
Apart from above-mentioned advantages, the North Central region’s tourism
economy, with the tendency of international economic integration, is facing lots of
12
difficulties and obstacles as following: The North Central region is located in an area
most directly affected by natural disasters as storms, floods, hot and dry winds.
Although the GDP per capita in the region has been increased, but still lower than
that of the nation. In the process of transition to a market economy, there were not
enough skilled and experienced workers, etc. This certainly poses challenges for the
tourism economy development in the region.
3.2. REAL SITUATION OF THE TOURISM ECONOMY IN THE
NORTH CENTRAL PROVINCES IN THE FRAMEWORK OF
INTERNATIONAL ECONOMIC INTEGRATION SINCE 2000 UNTIL
PRESENT DAY
3.2.1. Real situation of travel business
At present, in association with investment projects for socio-economic
development in their respective provinces, domestic travel agents operating in Ha Tinh,
Quang Tri and Thua Thien - Hue have done market reach in Northeast Asia. As a
result, the number of foreign tourists increased In the mean time, some agents became
more dynamic in doing business, thus drawing more tourists from Northeast Thailand
and South Laos (with caravan type) through Lao Bao and Cau Treo border gates.
The North Central provinces saw a rising number of domestic and international
visitors in recent years. Proportions of tourists have positively changed in favour of the
region’s tourism economy. It is shown in the following figures:
+ International arrivals in the North Central region
Figure 3.1 :The number of international arrivals in the North Centralregion

(2000 - 2011)
Unit: A thousand visitors
Source: Data: Institute for Tourism Development Research
Conducted by: PhD candidate
13
Table 3.3: International arrivals to the North Central region in comparison with
other regions in the country (2000 - 2011)
Source: Institute for Tourism Development Research.
+ Domestic arrivals to the North Central region
Figure 3.4: The number of domestic arrivals to theNorth Central region (2000- 2011)
Unit: A thousand tourists
Source: Data: Institute for Tourism Development Research.
Conducted by: PhD candidate
14
Figure 3.5: Domestic arrivals to the North Central region in comparison
with other regions (2000 - 2011)
Unit:a thousand tourists
Source : Institute for Tourism Development Research.
3.2.2. Reality of tourism business in accommodation
In terms of quantity, in 2000, the total number of accommodation establishments
in the region stood at 421, offering 9,337 already rooms to serve tourists. In 2005, the
figure was more than two folds at 882 units with 19,668 rooms. In 2011, the sum
reached 1,915 with 39,145 rooms, four times more than the 2000 figure.
Regarding quality, accommodation has seen improvement in accordance with
the growth in number, which is presented through the following tables:
Table 3.2: Quality of accommodation establishments in the North Central region
(2009 – 2011)
2009
2010
2011

Rank
Number of
Accommodation
establishments
Number of
rooms
Number of
Accommodation
establishments
Number of
rooms
Number of
Accommodation
Establishments
Number of
rooms
1 star
78
5.1%
2,769
8.6%
86
5.4%
2,769
8.1%
127
6.6%
2,736
7.0%
2 stars

80
5.2%
3,883
12.1%
83
5.2%
3,883
11.3%
101
5.3%
4,178
10.7%
3 stars
17
1.1%
1,318
4.1%
27
1.7%
2,003
5.8%
29
1.5%
2,161
5.5%
4 stars
10
0.7%
1,308
4.1%

13
0.8%
1,787
5.2%
16
0.8%
2,227
5.7%
5 stars
3
0.2%
423
1.3%
4
0.3%
655
1.9%
4
0.2%
648
1.7%
Total
1,525
100%
32,188
100%
1,587
100%
34,251
100%

1,915
100%
39,145
100%
Source: Institute for Tourism Development Research.
15
3.2.3. Reality of business in tourist transportation
In recent years, especially since 2000, along with the national course of
renovation, services for tourist transportation nationwide in general and in the
northern central provinces in particular have shown positive development. Means of
transport for tourism have evolved into diverse range of types, quality and quantity:
aviation transport, land transport, rail transport and water transport.
3.2.4. Reality of the development of tourism zones, destination and
products
- Tourism activities in the northern central provinces are devided into four
groups with respective tourism products including : (i), sea resorts mainly found in
Sam Son, Cua Lo, Thien Cam, Lang Co, Dong Hoi ; (ii), heritage tourism : the
ancient citadel of Hue ; (iii), ecotourism : Phong Nha-Ke Bang ; (iv), historical site
tourism : Kim Lien – Nam Dan, Quang Tri Citadel, Truong Son national cemetary,
Vinh Moc underground tunnels, Dong Loc intersection.
- Reality of tourism products in the northern central provinces on offerings:
Table 3.3: The production of tourism products in the North Central provinces
from 2000 to present
Province
Major products
Subsidiary products
Thanh
Hoa
- Beach tourism: Sam Son beach
- Cultural tourism: tours to learn about culture

and history at Ho Citadel , Lam Kinh relic, Ham
Rong cultural relic, Tu Thuc Cave – Mai An
Tiem Temple, Cam Luong spring
- Ecotourism: tours to visit and learn about the
ecosystem of the Ben En National Park, Pu
Luong Nature Reserve.
- Tours to Na Meo international border gate.
- Traditional festivals:
Lam Kinh Festival, Ba
Trieu Festival, Na Palace
Festival, Song Temple
Festival, Mai An Tiem
Temple Festival.
- Tour to Dong Son
cultural relics.
Nghe An
- Beach tourism: Cua Lo and Hon Me beaches,
etc
- Cultural tourism: tours to learn about culture
and history at Kim Lien – Nam Dan relic
complex;
- Ecotourism: tours to learn about the ecosystem
at Pu Mat National Park;
- Tours to Nam Can international border gate.
- Cuong Temple Festival;
- Tours to coastal islands;
- Travel by boat on Lam
River.
Ha Tinh
- Beach tourism: Thien Cam beach

- Cultural tourism:
+ Tours to Nguyen Du National Relic;
+ Culture and education tours to Dong Luc
- Ecotourism: Vu Quang
National Park, Ke Go
Lake;
- Tours to shrines
16
Province
Major products
Subsidiary products
Junction;
+ Huong (Perfume) Pagoda Festival;
- Tours to visit, shop and transit at Cau Treo
international border gate.
worshiping Tran Phu and
Ha Huy Tap (former
general secretaries of the
Communist Party of
Vietnam), and Ha Tinh
City’s relic complex;
- Tours to visit craft
villages: Thai Yen
carpentry, Trung Luong
forging village;
- Mountain climbing: Hong
Mountain
Quang
Binh
- Ecotourism: Phong Nha – Ke bang caves;

- Beach tourism: Nhat Le and Da Nhay beaches;
- Cultural tourism: tours to visit Dong Hoi City’s
historical relics;
- Tours to visit and transit at Cha Lo international
border gate.
- Traditional festivals: boat
racing festival, Lunar
March Full Moon festival;
- Beach sports activities;
- Relaxation and medical
tourism at Bang hot spring;
- Ecotourism at Mooc
Spring.
Quang
Tri
Cultural tourism: tours to visit, study historical and
revolutionary relics, spiritual education at a system
of relics associated with the American war.
Beach tourism: Cua Tung and Cua Viet beaches;
Tours to visit, shop and transit at Lao Bao
international border gate;
Ecotourism: tours to learn about the ecosystem at
Con Co Island.
- Shopping
- Cuisine
Thua
Thien –
Hue
Cultural tourism:
+ Tours to visit and study cultural heritage sites

(the Hue Complex of Monuments, The Royal
Court Music);
+ Spiritual tourism;
+ Cuisine.
Beach tourism: Lang Co and Canh Duong
beaches;
MICE;
- Ecotourism: Bach Ma National Park, Tam
Giang Lagoon.
- Boat tours on Huong
River;
- Medical tourism at My
An mineral water and mud
bath;
- Tours to visit craft
villages;
- Ecotourism at house
gardens.
Source: Institute for Tourism Development Research.
17
3.2.5. Reality of relations between tourism economy and other sectors
Relation between tourism economy and cultural sector; ii, Relation between
tourism economy and forestry industry; iii, Relation between tourism economy and
transport sector; iv, Relation between tourism economy and irrigation and
aquaculture; v, Relation between tourism economy and industry in terms of
exploiting minerals and construction materials.
3.3. ASSESSMENT OF THE SITUATION OF TOURISM ECONOMY
OF THE NORTHERN CENTRAL PROVINCES IN THE INTERNATIONAL
ECONOMIC INTEGRATION FROM 2000 TO PRESENT
3.3.1. Achievements gained from tourism economy in the northern central

provinces in all areas: Firstly, significant increase in income generated from
tourists. Secondly, there has been a shift in the structure of total earnings from tourists
in the overall map of earnings in the North Central provinces. Thirdly, structure of
total earnings from tourists by economic sector has also undergone changes in a
positive manner. Fourthly, increasingly attracting labour to accommodation
establishments. Fifthly, increased investment into the development of tourism
economy. Sixthly, the tourism economy has contributed to the socio-economic
development of the northern central provinces.
3.3.2. Shortcomings: Firstly, regarding the market, although there have been
many changes in the market structure of tourists; the northern central provinces have
failed to appeal those from the high-end markets. The proportion of tourists remains
unchanged and tends to be long stayed and scale of expenditure by tourists is still
low. Secondly, tourism products in the region are lack of uniqueness and high
competitiveness. Thirdly, the economic structure has been shifted in the positive
direction but the speed is still slow, falling short of desire. Fourthly, the operation of
travel agencies in the Northern central provinces is sparse, unprofessional coupled
with ineffective performance and weakness in competitiveness and reaching out
foreign markets. Fifthly, the capacity of international tourism integration is limited.
3.3.3. Reasons for shortcomings
- Subjective reasons: 1) The tourism economy in the northern central
provinces faces fierce competition against other players. 2) Tourism resources are
scattered sparsely. 3) The infrastructure in the northern central provinces is not
synchronized. 4) System of accommodation establishments is small scaled and
inconvenient. 5) Tourism economy in the northern central provinces is under impacts
of the climate change.
- Objective reasons: 1) The scale of quality of communications and promotion
campaigns for tourism are poor. 2) Capacity of human resources for tourism economy
18
in the northern central provinces is inadequate while the structure is unsound. 3)
Management capacity in the tourism economy is incapable, failing to reach the

demand. 4) Investment into the tourism economy is still inappropriate. 5) The
importance of international cooperation in tourism business is underestimated. 6)
Tourism environment shows shortcomings.
Chapter 4
DIRECTIONS AND SOLUTIONS TO IMPROVED DEVELOPMENT OF
TOURISM ECONOMY IN THE NORTH CENTRAL PROVINCES IN
INTERNATIONAL ECONOMIC INTEGRATION
4.1. Context and directions to develop tourism economy in the North
Central provinces to 2020 with a vision to 2030
4.1.1. The new context of tourism economy in the North Central provinces
4.1.1.1. The international context
Vietnam’s commitments to: the ASEAN member countries and the multilateral
framework.
4.1.1.2. National context
- New opportunities: i, Vietnam has always actively into the regional and
global economy both in depth and on wide scale as well as boost bilateral
cooperations. ii, After the global financial crisis, Vietnam has reformed economic
structure. iii, Vietnam is boosting up industrialization, modernization process in line
with developing knowledge economy. iv, Local government’s awareness at all level
and people’s awareness in the North Central provinces have increased significantly.
- Difficulties and challenges: i, Exploitation of natural resources, landscape,
tourism environment and human resource is not compatible with potentials. ii,
Human resource in tourism industry has not met the requirements for professional
and practical skills, integration, and connection to global market. iii, Capability of
capital resource and technology is still limited. iv, The pressure of intensive
international competition, etc.
4.1.2. Directions to develop tourism economy in the North Central
provinces to 2020 with a vision to 2030
4.1.2.1. Development of tourism products: 1) Development of tourism
activities in heritage sites associated with promoting marine tourism. 2) Development

of tourism product through tourism types. 3) Development of other tourism products.
4.1.2.2. Increasing investment to develop tourism economy: Raising
investment capital for tourism economic development from the different resources.
North Central provinces should invest resouces in targeted projects and programs in
19
order to generate ‘a jostle’ for the tourism economic development in the North
Central provinces.
4.1.2.3. Provisions to ensure to gain sustainability of tourism economic
development: Develop tourism economy in association with environmental
protection and natural landscape preservation, adapting to climate change, and also
for the welfare of the community. Accordingly, forms of ecotourism, community
tourism should be paid attention to develop and expand as a way to follow the
orientation of sustainable tourism economic development, climate change adaptation
of the whole region.
4.1.2.4. Expanding and associating in tourism economic development: both
forms and contents of association should be taken into consideration, of which
contents of the association for tourism economy development should include: i,
Associating in producing tourism programmes and products featuring specific
characteristics of each province in the region, as well as the whole region; ii,
Associating in mobilizing and exploiting resources effectively, and orientations to
attract foreign investment and encourage domestic investment. iii, Associating in
developing and implementing policies for tourism economic development. iv,
Associating in implementing action plans of each province in combination with other
provinces in the region. v, Associating in implementing programmes, duties, plans,
projects of the region. vi, Associating in inspecting, supervising the regional policy,
regulation implementation and standard application of tourism economy.
4.1.2.5. Development of tourism sites, destinations
- Development of tourism site system: On the basis of the regional potentials,
priority is given to build and develop 6 national tourism sites, including : Citadel of
the Ho Dynasty (Thanh Hoa Province), Dong Loc Three-way crossroads (Ha Tinh

Province), Nguyen Du Relic Area (Ha Tinh Province), Dong Hoi City (Quang Binh
Province), Ancient Citadel of Quang Tri (Quang Tri Province), and Bach Ma
National Park (Thua Thien – Hue Province).
- Development of tourism sites: The system of national tourism sites need to
have priority mechanisms and policies to boost tourism development, including : Kim
Lien national tourism site (Nghe An Province), Thien Cam Beach (Ha Tinh
Province), Phong Nha – Ke Bang National Park (Quang Binh Province), Lang Co –
Canh Duong (Thua Thien – Hue Province).
4.2. Fundamental solutions to accelerate the development of tourism
economy in the North Central provinces in international economic integration
4.2.1. Solutions of mechanism, policy
20
4.2.1.1. Reviewing, Perfecting policy system: It is necessary to continue to
implement reform programs, perfect mechanisms, policies, complete stipulations of
the law and relevant legal documents regarding tourism economy. Completing,
supplementing mechanisms of investments in tourism economy; settling
interdisciplinary and interoffice affairs harmoniously such as: mechanism, policies,
regulations on tax administration, market management, customs procedures,
immigration procedures…in order to create favourable conditions for quickly
boosting tourism economic development.
4.2.1.2. Strengthening the capacity of state management in tourism sector: 1)
Authorities should concentrate on doing planning, plans; completing and perfecting
legal document. 2) To establish Tourism Economy Coordinating Committee to
coordinate the development of the investment and investment attraction policies,
strategies for the regional tourism economy. 3) Perfecting the management system of
tourism economy from provincial to local levels. 4) Improving state management
capacity and professionalism for management personnel in tourism industry. 5)
Consolidating, strengthening the State management of tourism economy. 6)
Developing training programs in order to upgrade professionalism, management
capacity as well as informatics, foreign languages…for tourism management

personnel in provincial institutions, tourism enterprises, etc.
4.2.2. Group of solutions to create favourable conditions for tourism
economy activities in the North Central provinces
4.2.2.1. Expanding the scope of communication, promotion programs and
activities for tourism economy of the North Central Region in both other domestic
areas and foreign countries: (i) Conducting research on tourists’ behaviour, attitude,
styles, taste, customs, psychology. (ii) Designing an appealing advertisement
campaign through communication means. (iii) Diversifying the forms of
communication, propaganda, etc.
4.2.2.2. Improving competitiveness of travel enterprises in the North Central
Regional provinces: 1) Strengthening market research. 2) Market development closely
ties to tourism product development.
4.2.2.3. Strengthening investments to develop and improve accommodation
establishments in the North Central provinces: the regional provinces need to increase
investment in upgrading hotels, prioritize investment and construction projects on hotels
with modern facilities that reach the international standards. The region should prioritise
investment into constructing restaurants, and entertainment centres.
4.2.3. Group of solutions for improving competitiveness of tourism
products in the North Central provinces
21
4.2.3.1. Diversifying and improving competitiveness of tourism products
Diversifying tourism producs: In the process of tourism product development,
it should focus on ecotourism, leisure tourism, tourism products combine with
cultural and historical activities…Combining new tourism product development with
current tourism product improvement in order to meet requirement for broadening
market in the orientation of fast and sustainable tourism economy development.
Local areas should support each other to collect, restore and develop tourism products
and related services.
Raising quality of tourism products: It is necessary to classify, systematise and
organise traditional festivals in the region efficiently to offer for tourists and implement

promotion and advertising campaigns to promote the tourism activity. And it is
necessary to encourage the restructuring of traditional craft villages to serve tourists.
4.2.3.2. The development of different tourism products: - Different tourism
product creation is to affirm competitive position in the international market. In the
North Central provinces, in the coming years, it is necessary to prioritize and
concentrate on developing tourism products in which have particular characteristics,
no like other areas: touring caravan tourism product, marine tourism product, cultural
- historical tourism product…
4.2.3.3. The implementation of price strategy for tourism products
Price of tourism product is set and offered different levels in different markets
on the basis of quality, distinction, seasons and every area’s characteristics.
Therefore, it is necessary to apply a flexible price mechanism for tourism products in
order to attract tourists.
4.2.4. Group of solutions for tourism resources in the North Central
provinces
4.2.4.1. Improving quality of tourism human resource: In order to satisfy
urgent requirements of tourism human resource in the North Central provinces, it is
the time to develop a comprehensive training program with specific and detailed
plans of retrains programs for old members, training activities for new comers,
professionalism and skills supplement training programs for employees at all levels
working in the tourism sector from State section, private and foreign joint venture
enterprises.
4.2.4.2. Mobilizing and exploiting capitals resources to boost tourism
economy development
Investment in infrastructure system in tourism sites: Priority is given to key
projects. Investment in tourism service works: should focus on improving service
quality and expanding scope of the system in order to create favourable conditions to
22
receive advance technology in the accommodation service business. Investment in the
system of entertainment service works: Developing entertainment services in order to

satisfy tourist’s demands and make their stay longer.
4.2.4.3. Value advanced science and technology applications to boost the
process of international integration for tourism economy
The direction of research should focus on: Conducting researches in the
effective management and exploitation of tourism resources, tourism statistic
methods, and problems of tourism economy environment; Boosting typical tourism
product development, etc.
4.2.4.4. Material facilities – infrastructure development for tourism economy
The regional provinces should develop the system of road traffic, water way traffic,
air traffic comprehensively, in which road traffic has close association with tourism
resources in the North Central provinces. At the moment, the region should
concentrate on investing and upgrading the main and important national highways.
The highways lead to international border gates such as: Lao Bao, Cau Treo, and Cha
Lo need to have investment capital resources to upgrade and broaden in order to
reach international standard.
4.2.5. Group of solutions for association and cooperation in tourism
economy development between the North Central provinces
4.2.5.1. Forming association to boost tourism economy development in the
North Central provinces
Tourism economy in the North Central provinces should attach much
importance to: i, Conducting propaganda campaigns to increase awareness about
benefits of the regional association under requirement of international economic
integration. ii, The local authorities should unite in plannings decisions for
transportation system development, tourism material and technical facilities. iii, The
region should encourage investment in some types of services that the region still
have not enough supply capacity. iv, The local tourism agencies should develop
coordinated tourism programs or products with typical features of each province, etc.
4.2.5.1. Strengthening regional and international co-operation to develop
tourism economy in the North Central provinces: Accelerated co-operation of tourism
economy under the framework of the East-West Economic Corridor, the Greater

Mekong Sub-region, ASEAN and WTO.
4.2.6.Solutions to develop tourism economy in a sustainable manner.
4.2.6.1. Protecting tourism resources and environment: The sustainable
development of tourism economy in the North Central provinces should prioritise
activities as follows: i, Combining social, and cultural development and
23
environmental protection planning with tourism economic development planning.
ii, Assessing environmental impacts on all tourism development and business
projects. iv, Increasing investment, promotion, and education to raise the public
awareness of conserving the nation’s natural, historical and cultural heritage sites.
4.2.6.2. Solutions in response to climate change to develop tourism economy:
Improved propaganda for and awareness of the whole society of climate change and
sea water rising. Reviewing and adjusting tourism development planning, particularly
in the coastal and mountainous areas of the North Central region to match with plans
fighting climate change and sea water rising designed by the Ministry of Culture,
Sports and Tourism and the North Central provinces.
CONCLUSION
Tourism economy plays an important role in the socio-economic life and an
important position in the national cause of industrialisation and modernisation. The
development of tourism economy does not only aim at exploiting the country’s
available potentials but also is a pressing demand to integrate our economy into the
world economy in the development process.
The North Central provinces make an overriding important position in
Vietnam’s Tourism Economy Development Strategy. This is a region with typical
and diverse tourism resources, allowing the rapid development of distinctive tourism
products related to relaxation, sea and island tourism, cultural and historical tourism,
heritage tourism, caravan tourism, MICE, and coastal cuisine tourism.
Although the national and international circumstances have gone through
numerous changes, difficulties and challenges since 2000, tourism economy in the
North Central provinces still records a profound growth. However, the development

of tourism economy remains far from the region’s potential, quality of tourism
services remains poor. Advantages and strengths to develop the North Central
provinces’ tourism economy must be brought into full play whilst shortcomings and
weaknesses need to be addressed, this has surpassed the management capacity and
resources of the region. That’s why, the incorporation to mobilise resources and
implement mutual action programmes of the region has been a decisive factor to
promoting the development of tourism economy in the North Central provinces.
After a long period of time searching for documents and data and studying
theoretical and practical bases, the PhD candidate has completed the thesis with
major contents as follows:: (1) Generalising the research of other scientific studies,
monographs, theses, and other works by both internal and external researchers; (2)
Specifying tourism economy concepts, tourism economy components; and analysing