Viet Nam : Second Greater Mekong Subregion Tourism Infrastructure for Inclusive Growth Project

Transport / Road transport (non-urban) - Water transport (non-urban)

Water and other urban infrastructure and services / Other urban services - Urban flood protection

Forecasts suggest that Asia and the Pacific will be the world's fastest-growing region through 2030, when it will receive 535 million tourists, or 30% of the global market share. In 2016, ASEAN countries received 116 million international tourists, up 42% compared with 2011. ASEAN arrivals are expected to grow 5.1% per year and reach 187 million in 2030. Within ASEAN, Viet Nam, Cambodia and the Lao PDR actively cooperate to promote multicountry tour programs that connect their economies with larger, more affluent regional markets.

Viet Nam's international tourist arrivals reached 10.01 million in 2016 after growing by just over 10% annually since 2009. Top source markets are the People's Republic of China (27%), the Republic of Korea (15%), and Japan (7%). Domestic tourism is also substantial, with more than 62 million trips in 2016. Tourism contributes nearly 5% to Viet Nam's gross domestic product and generates 72% of service exports, directly supporting 1.9 million jobs

the majority are held by women in small and medium-sized enterprises (SMEs). The government targets a 10% gross domestic product contribution by 2020, when tourism is expected to generate $32.5 billion and sustain 1.05 million new tourism-related jobs.

Government efforts to upgrade gateway airports, transnational railways and highways, and secondary roads to boost travel and trade are supported by the Asian Development Bank (ADB) and other development partners. Regional policies to liberalize transport services and ease cross-border tourism complement physical infrastructure investments. For example, Viet Nam permits prearranged tourist visas on arrival for 182 countries, electronic visas for 46 countries, and grants 15-day tourist visa exemptions to citizens of all ASEAN countries. As a result, the number of visitors arriving by air in 2016 was 8.3 million, and 1.5 million entered using private buses or personal vehicles.

Even with these strengths and opportunities, Viet Nam ranks low in the World Travel & Tourism Competitiveness Index, mainly because secondary destinations lack sufficient transport infrastructure, urban sanitation and public spaces, and high-quality tourism services. Other underlying problems are inadequate public infrastructure asset maintenance, weak tourism planning, and ineffective marketing, which collectively undermine the business-enabling environment for tourism. Consequently, in 2016, Viet Nam's share of ASEAN international tourist arrivals was only 8.6%. Imbalanced tourism growth within the country is another consequence of underinvestment in secondary destinations, with more than half of international tourist arrivals and corresponding benefits accruing to Ha Noi, Ho Chi Minh City, Ha Long Bay and Da Nang.

Secondary towns in Viet Nam's segment of the GMS eastern corridor are vulnerable to climate change and natural disasters. Risks include stronger and more frequent typhoons, storm surges along the eastern seaboard, and intensifying rainfall and flooding in major river valleys. These risks are exacerbated by limited country capacity to integrate adaptation and mitigation solutions. Countering climate change and natural disasters requires finance and knowledge to retrofit and construct climate-resilient infrastructure and promote resource-efficiency certification programs. Public awareness campaigns to promote lower-carbon travel, emission offsets, and environment-friendly tourism services are also needed.

To help remove these constraints, the project builds on ADB's ongoing GMS Tourism Infrastructure for Inclusive Growth Project in Viet Nam and the GMS Sustainable Tourism Development Project (2008-2015) by selectively financing climate-resilient rural roads, water transport infrastructure, seaside storm defenses, public greenspace improvements, and capacity building for better destination management, all of which is needed to boost tourist arrivals and spending in secondary destinations. Priority investments are (i) road improvements to link small towns with rural community-managed tourist attractions, (ii) ferry ports to increase passenger-handling capacities and give private operators the facilities needed to expand water transport and recreation services, (iii) seawalls, coastal revetments, and drainage improvements in flood-prone areas, and (iv) capacity building to support the implementation of ASEAN tourism standards and infrastructure operation and maintenance (O&M). The integrated design will assist Hoa Binh, Nghe An, Quang Binh, Quang Tri, and Thua Thien Hue provinces attract more and higher-spending visitors, thus contributing to more balanced tourism growth and employment-intensive SME development in lagging areas.

Sustainable, inclusive, and more balanced tourism development achieved (ASEAN Tourism Strategic Plan 2016-2025)

Tourism competitiveness of secondary towns in Viet Nam increased

1. Urban-rural access infrastructure and urban environmental services improved

2. Capacity to implement ASEAN tourism standards strengthened

3. Institutional capacity for tourism destination management and infrastructure O&M strengthened

For TTH, the detailed designs (DDs) were completed in 2020 and all three civil works contracts signed to date. Commencement of some sections that completed the LAR compensation already started.

For QB, HB, and QT, the DDs are being prepared and expected to be approved by end May 2022. For NA, the detailed design and support consultant was mobilized in late January 2022 and the DD is expected to be approved by end June 2022. All remaining civil works contracts are targeted to award by end December 2022.

Same as 1a.

Same as 1a.

HB: 92 people of which 52 are females were consulted to date.

NA: consultation will be conducted in March and April 2022. Female participation will be recorded.

QB: 4/20 people consulted are females.

QT: 10/23 people consulted are females.

TTH: 23/93 people consulted are females.

Data will be collected upon putting the facility into operation.

The national and provincial advisory boards for ASEAN tourism standards certification have been established. Data on female composition will be collected and recorded in the next progress reports.

In April 2022, VNAT will conduct a review of the five project provinces' performance in pursuing the ASEAN standards of green hotel, public toilet, clean tourist city, and homestay. Thua Thien Hue has received the certifications of green hotel (Vedana Lagoon Resort & Spa in 2022, Pilgrimage Village in 2018) and clean tourist city (Hue city in 2018).

Same as 2b.

The Ministry of Culture, Sports, and Tourism take charge of these activities. Commencement expected in 2022 and subject to the counterpart fund availability.

The Ministry of Culture, Sports, and Tourism take charge of these activities. Commencement expected in 2022 and subject to the counterpart fund availability.

The Ministry of Culture, Sports, and Tourism take charge of these activities. Commencement expected in 2022 and subject to the counterpart fund availability.