Ho Chi Minh City seeks ways to encourage foreign tourists to spend more

The city is also working on broader solutions aimed at removing bottlenecks in tourism shopping activities.

Tourists reluctant to spend

At Ben Thanh Market in Saigon Ward, Ho Chi Minh City, business activity during weekends in May has become noticeably quieter compared to previous years, especially as tourist demand has declined.

Nguyen Dien Huan, a vendor specializing in souvenirs for tourists at the market, said purchasing power among visitors has dropped by an estimated 30-40 percent compared to the pre-pandemic period.

According to Huan, foreign tourists are no longer willing to spend as freely as before. Visitors from Southeast Asia tend to shop more frequently, but the value of each purchase remains relatively low as they mainly seek inexpensive products.

“With fewer customers, inventories have piled up, forcing us to reduce imports. This affects the entire supply chain and impacts workers as well,” Huan said.

A representative of Ben Thanh Market also confirmed that visitor numbers have fallen significantly after the Lunar New Year peak season, leading to slower business activity, particularly in non-essential sectors such as souvenirs, fabrics, and fashion items.

Tran The Dung, general director of Vietluxtour Travel JSC, said tourists are often viewed as 'walking wallets' for local economies, but international visitors to Vietnam have yet to spend heavily.

According to Dung, many travel companies are still reluctant to include shopping destinations in tour programs because the city lacks large-scale and reputable shopping centers that can attract tourists.

He noted that neighboring countries have developed organized shopping tourism programs, while Vietnamese travelers tend to spend heavily when shopping abroad.

“We need large shopping centers such as outlets, night markets, and standardized shopping streets," Dung said.

“Ho Chi Minh City has all the conditions needed to develop them, but there is still no outlet or shopping center operating on a sufficiently large scale."

He proposed stronger links among travel firms, retailers, manufacturers, and local authorities to develop products with distinctive regional identities.

Solutions needed to stimulate spending

At a recent seminar, Le Hong Thuy Tien, CEO of Imex Pan Pacific Group, said Vietnam needs additional measures to encourage tourists and residents to spend more.

Citing figures released by the National Statistics Office on January 6, 2025, Tien said international visitors spent approximately US$12.19 billion in Vietnam in 2024, while Vietnamese travelers spent around $12.57 billion overseas.

According to her, tourists visiting Vietnam are willing to spend heavily on core services such as accommodation, transportation, dining, and sightseeing, but they remain extremely cautious when it comes to shopping because Vietnam has yet to provide reasons compelling enough for them to spend.

Tien proposed upgrading the VAT refund system for tourists, developing proper duty-free and outlet systems, reorganizing retail spaces at major tourism destinations, and studying controlled duty-free shopping models in economic zones.

“Every percentage point of tourist and consumer spending retained in Vietnam would translate into billions of U.S. dollars flowing directly into the economy,” she said.

Nguyen Nguyen Phuong, deputy director of the Ho Chi Minh City Department of Industry and Trade, said the city is considering building a shared data system capable of managing and verifying tourists’ shopping history.

“We can connect all this data into a unified citywide system. Once the data is interconnected, the system can automatically record and accumulate reward points for tourists based on their total spending in Vietnam,” Phuong said.

He added that reward points could later be exchanged for promotions and incentives aimed at encouraging higher consumer spending.

The department is also planning to cooperate with supermarkets to establish dedicated sections for high-quality products made in Ho Chi Minh City, helping local products gain greater visibility while giving tourists and residents more reliable shopping choices.