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Regions transformed with targeted tourism

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6 days ago

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The lives of ethnic minority people in the northern mountainous areas of Son La, Ha Giang, and Lai Chau have become more prosperous since they started engaging in tourism and serving visitors.

Vat village, located in Muong Sang commune, is a well-known community-based tourism destination in Moc Chau district of Son La, about 10km from the town centre. The entire village currently has 50 households involved in tourism, with 15 households providing accommodation for guests, while the others form groups focused on weaving, arts, tour guiding, and providing food,

Regions transformed with targeted tourism
Regions transformed with targeted tourism

Luong Thi Tuoi, owner of Moc Mien homestay and also the head of the homestay group in Vat village, said that, along with two other families in the village, she started offering lodging services in 2017, planting local fruit trees such as plums, apricots, and strawberries.

“At that time, we were just experimenting, trying out things we had learned or thought of ourselves, but tourists started coming and staying with us. These early signs made me and the other villagers feel hopeful,” Tuoi added.

At the moment Tuoi and the villagers of Vat were starting visitor activities, early in 2019, Moc Chau was planning to become a national tourism area by 2030. The scope of the planning includes the two districts of Moc Chau and Van Ho, covering a total natural area of over 206,000 hectares. Vat village was also chosen by the district as a pilot site for the community-based tourism model.

“From an income of $120-150 per month, the people of Vat village now earn $600-800 per month from hosting guests at homestays, providing strawberry-picking experiences, and selling local fruit,” she shared.

Dinh Thi Huong, head of the Department of Culture and Information of Moc Chau district, stated that after more than four years of running the community tourism model, the Thai ethnic community in Vat village can now confidently manage this model and use it to improve their income and enhance their quality of life.

After Vat village, Moc Chau added four other villages that have developed the community tourism model effectively. However, Vat receives the most visitors due to its convenient transport links and the preservation of the traditional culture of the Thai people.

In October 2024, the Ministry of Culture, Sports, and Tourism approved a scheme on the development of community tourism in Vietnam. One of the goals of the initiative is to support access to resources and public services for rural areas, especially those inhabited by ethnic minorities and mountainous regions, prioritising those with small ethnic groups.

The project aims to develop community tourism products and services linked with the development of cultural industries, involving real experiences in traditional craft villages and preserving the cultural values of ethnic groups.

Nguyen Le Phuc, deputy director of the Vietnam National Authority of Tourism (VNAT), emphasised that Vietnam’s diverse terrain, attractive natural landscapes, and varied ethnic cultures make it ideal for the development of community tourism.

“In Vietnam’s tourism development strategy, products based on exploiting the values of natural and indigenous culture are prioritised for investment, with a special focus on developing community tourism products,” Phuc said.

According to the VNAT, there are currently about 300 community-based tourism villages and 5,000 homestay accommodation establishments across the country, mainly concentrated in the midland and northern mountainous regions, home to many ethnic minority groups.

The development of this tourism product helps preserve cultural heritage and brings greater economic value to local people.

Elsewhere, Ban Hon commune in Tam Duong district of Lai Chau province has eight villages with nearly 600 households, over 90 per cent of which are from the Lu ethnic group.

In recent years, Ban Hon has aimed to develop commercial agriculture linked to sustainable tourism. By the end of 2024, the commune will have four villages engaged in tourism, with more than 20 households running homestays.

“To meet tourist interest in local culture, Ban Hon has revived and preserved many traditional rituals and crafts in the villages. Many Lu ethnic households have not only escaped poverty but have also become prosperous, contributing to reducing the poverty rate of the commune to less than 25 per cent,” said Lo Van Giot, deputy chairman of the commune’s People’s Committee.

Meanwhile, the Ha Giang stone plateau, home to ethnic groups such as the H’Mong, Dao, Tay, and Lo Lo, have rapidly transformed over the past 10 years of community tourism development.

From only a few thousand visitors per year, Ha Giang province has become an attractive destination with millions of tourists, including many international visitors. In 2024, Ha Giang welcomed 3.2 million visitors, an 8.8 per cent increase compared to 2023, with about 380,000 international visitors. The total tourism revenue exceeded $315 million.

Compared to 2014, community tourism has brought Ha Giang five times the number of visitors and more than seven times the revenue, from 650,000 visitors and $44 million in revenue.

Giang Mi Lu, the owner of a traditional stone house homestay in Dong Van district, said that previously as a farmer, his family’s income depended on a few acres of corn, earning just over $400 per season. “Now, running a homestay, I welcome about 400–500 guests each month, earning five to seven times more than before,” Lu said.

Along the roads from Dong Van and Meo Vac to Hoang Su Phi, hundreds of traditional stone houses and wooden houses have become cosy homestays for tourists.

Visitors staying in a homestay in Ha Giang get to experience the accommodation and enjoy traditional Mong dishes, such as thang co, drink corn wine, and learn to weave flax and dye fabrics using traditional methods.

Ha Giang currently boasts over 300 homestays, 70 per cent of which are operated by ethnic minorities.

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Real estate capital heading into suburban areas

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57 minutes ago

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March 12, 2025

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The shortage of affordable apartments in Ho Chi Minh City has led buyers with tight budgets to seek properties in neighbouring markets.

The real estate market in Ho Chi Minh City is facing a scarcity of land, while the cost of project development is continuing to rise. This has forced investors to carefully consider which product segments to focus on to ensure profits.

Real estate capital heading into suburban areas
Photo: baodautu.vn

Investors with land in strategic locations close to the city centre are prioritising the development of mid-range and high-end products to optimise financial outcomes.

As a result, buyers seeking affordable options are being forced to look elsewhere.

“The shortage of affordable apartments in Ho Chi Minh City has led buyers with limited finances to seek items in neighbourhoods like Binh Duong, Dong Nai, and Long An. In these areas, apartment prices hover at around $1,200-$1,600 per square metre, creating strong demand,” said Giang Huynh, head of research and S22M at Savills Ho Chi Minh City.

From another perspective, the average rental yield for apartments in Binh Duong is currently 4.7 per cent, well above the 3.7 per cent yield in Hanoi and 3.6 per cent in Ho Chi Minh City.

Dinh Minh Tuan, southern regional director of real estate trading platform Batdongsan.com.vn, shared that the high rental yield in Binh Duong is largely due to reasonably priced luxury apartments, with high rental prices and stable occupancy rates.

On average, a luxury apartment in Binh Duong can be rented for $400-$480 per month for a one-bedroom unit, and from $600-$800 for a two- to three-bedroom unit.

Meanwhile, in Ho Chi Minh City or Hanoi, apartments in the $1,800-$2,000 per square metre range can only be rented for around $280-$480 per month, depending on the number of bedrooms, not to mention the increasingly stiff competition in enticing tenants.

In response to the strong capital shift, real estate firms in Ho Chi Minh City’s suburban areas are accelerating legal procedures to launch new projects.

This trend reflects the investors’ agility and creates attractive opportunities for both homebuyers and investors in 2025.

Accordingly, Kim Oanh Group plans to launch a 27-hectare urban area in New Binh Duong City in the first quarter of 2025.

This will be the first project the company has collaborated on with Surbana Jurong, a partner from Singapore, under EDGE green standards.

The project features 1,656 townhouses and terraced houses, and 1,666 social apartments, priced from $28,000 per unit.

Major developer Phat Dat Real Estate Development Corporation plans to launch two major projects, Thuan An 1 and 2 in Binh Duong province, covering a total area of 4.46 ha.

The 1.8ha Thuan An 1 will provide 2,604 apartments and shophouses, while the 2.66ha Thuan An 2 will have 3,270 apartments and 16 townhouses. These projects are located on key roads.

Simultaneously, southern developer An Gia Group plans the launch of 3,000 apartments at The Gio Riverside and 76 shophouses in Di An city.

The three-hectare project, located on the provincial route DT16, offers nicely designed apartments with one to two bedrooms.

Regarding opportunities for homeownership, Phan Cong Chanh, an expert in real estate investment, noted that owning a home requires solid knowledge and time to raise financial resources.

For young people, buying a home immediately is a challenge due to limited finances.

Buyers can explore financial support packages and use leverage to shorten the time needed to purchase real estate. This needs to be accompanied by a reasonable plan to ensure long-term affordability.

“Overall, owning a home is not just a purchasing decision; it also requires a smart financial strategy. Whether choosing to buy immediately, rent, or invest in real estate in any segment, individuals must consider their financial conditions and personal plans carefully,” said Chanh.

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VinFast looks to long term with operational roadmap

Published

3 hours ago

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March 12, 2025

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Carmaker VinFast aims to become a powerhouse in the electric vehicle market as it grapples with tougher competition abroad.

VinFast looks to long term with operational roadmap
The company wants to double EV sales when compared to last year’s figure

Potential investment from JTA Investment through an MoU between Vingroup and Qatar Investment Fund, which was unveiled last week, aligns perfectly with VinFast’s ambitious vision of scaling up production and sales in a competitive international market, the company said.

JTA Investment is exploring a potential equity investment of at least $1 billion in VinFast, the Nasdaq-listed EV manufacturer, as well as a strategic partnership aimed at supporting the company’s global expansion and technological development.

“This collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion,” said Le Thi Thu Thuy, vice chairwoman of Vingroup.

Global electric vehicle (EV) competition is expected to get tougher as the demand for EVs is projected to increase further this year, but the outlook is being hindered by uncertainty surrounding tariffs and policy changes.

In 2025, S&P Global Mobility projects that 15.1 million battery EVs will be sold worldwide, a 30 per cent increase on last year. It is anticipated that 16.7 per cent of the light vehicle market will be made up of battery-based EVs.

S&P also reported that major unknowns await Chinese manufacturers BYD and Tesla in 2025 due to assumed changes to the US Inflation Reduction Act.

Last year, VinFast stated that it was delaying the opening of its North Carolina factory until 2028, which will allow the company to optimise its capital allocation and manage short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations.

The company is expanding its strategy in India, Indonesia, and the Philippines, where EV infrastructure is developing rapidly but competition from domestic brands is limited. Experts said that in order to sustain long-term growth, it needs to compete with Chinese manufacturers and prove its competitiveness beyond its home market.

VinFast is scheduled to open factories in Subang, West Java and in the southern Indian state of Tamil Nadu this year. The plan to expand into India aims to seize growth opportunities in the world’s most populous nation and rapidly expanding EV market.

On February 28, VinFast and Motech Automotive Service Centres, through its franchisor and operator in the Philippines, signed an MoU on expanding the service network for VinFast’s EVs in the market. The agreement aims to meet the increasing demand for EVs among Filipino consumers, while affirming VinFast’s long-term commitment and determination to utilise green transformation across the region.

VinFast and Motech will collaborate to accredit over 60 Motech service workshops as approved VinFast service centres. In the Philippines, these service centres will have the authority to handle VinFast EV maintenance, warranties, and repairs. This year, VinFast intends to open over 100 similar service workshops throughout the Philippines.

In 2025, the company has set the ambitious target of doubling sales to around 200,000 EV globally after announcing impressive results in 2024, with 97,300 EVs sold globally, of which about 87,000 vehicles came from the domestic market.

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M&As in crucial sectors poised for rapid expansion

Published

5 hours ago

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March 12, 2025

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Following the downturn, Vietnam’s merger and acquisition landscape is set to gain momentum in 2025, driven by spearhead industries from technology to manufacturing. Julien Curtet, partner of Index Partners, shared with VIR’s Thanh Van his insights into the overview and the prospect of the market.

How do you see Vietnam’s merger and acquisition (M&A) market affected by global market volatility?

M&As in crucial sectors poised for rapid expansion
Julien Curtet, partner of Index Partners

In 2024, global M&A activity rebounded, reaching approximately $3.5 trillion (a 15 per cent increase from 2023) with around 7,500 deals above $30 million. Corporate acquisitions rose by 12 per cent, and financial investor activity surged by 29 per cent, driven by private equity amid easing interest rates. Key sectors included technology, energy, financial services, and telecom.

Vietnam mirrored global trends with notable M&A activity in technology, energy, and industrial sectors, supported by a resilient macro and rising foreign investment.

In 2024, Vietnam’s M&A market experienced a downturn in transaction value, influenced by global economic uncertainties stemming from geopolitical tensions and currency fluctuations. However, deal volume reached around 160 transactions in the second half of 2024, marking a 25 per cent rise from the first half of 2024 and a 32 per cent jump from the second half of 2023, signalling a strong recovery trend and positive momentum for future growth. Some key deals in the second half of 2024 were Masan’s acquisition of an additional 7.1 per cent stake of VinCommerce from SK Group for $200 million, KIDO’s acquisition of Hung Vuong, Nvidia’s acquisition of VinBrain, and SK Group’s $300 million acquisition of Iscvina Manufacturing.

Mid-cap deals up to $25 million dominated Vietnam’s M&A market, accounting for just over half of total deal volume despite a 28 per cent drop in total transaction value. Mid-size transactions in the second half of the year included ADA’s acquisition of Customore and Elan’s $8.89 million acquisition of TMC Vietnam.

Could you shed light on some key drivers for the Vietnamese market in 2025 and beyond?

In 2025, it is set for strong growth, driven by key sectors such as infrastructure, technology, consumer, and manufacturing. Infrastructure will see a surge in investment, particularly in transportation and logistics, supported by government initiatives.

The technology sector is poised for rapid expansion, fuelled by favourable policies and accelerating digital transformation. Consumer spending is expected to rebound from a low base, signalling a recovery in the consumer sector.

Meanwhile, the manufacturing sector, which contributed over one-quarter of GDP in 2024, is projected to grow by 10 per cent in output, supported by new industrial zones and increased foreign investment.

The market is set to accelerate in the second half of 2025, fuelled by stable global interest rates and rising investor confidence.

Vietnam’s strong economic momentum, pro-investment policies, and booming sectors like technology, manufacturing, infrastructure, and recovery of consumer will drive deal activity, cementing its status as a key M&A hub in Southeast Asia.

How do foreign dealmakers approach strategies amidst global economic uncertainty, especially tariffs and new US policy?

Foreign dealmakers are reshaping their M&A strategies. Despite the challenges, Vietnam remains a key destination for cross-border investment, driven by its rapidly expanding technology, consumer, and manufacturing sectors.

Vietnam is rapidly advancing its technology sector, emerging as a significant player in the global digital landscape. Its commitment to technological innovation is evident through key partnerships, such as the collaboration with Nvidia to establish AI research and data centres in the country.

To further entice high-tech investments, the government offers substantial incentives, including up to four years of tax exemptions and a 50 per cent tax reduction for the subsequent nine years, as well as financial support from national sci-tech development funds.

Additionally, Vietnam’s consumer market is expected to recover in 2025, fuelled by a rising population, and increasing disposable incomes, boosting demand for goods and services. With consumer confidence rebounding and spending accelerating across sectors, Vietnam’s consumer market is regaining momentum as a vital driver of economic growth.

Vietnam is emerging as a manufacturing and logistics hub, attracting foreign investments due to its competitive labour costs (20–50 per cent lower than regional peers) and a 9.8 per cent increase in manufacturing output in 2024. An “anything but China” strategy is driving multinationals to shift production to Vietnam.

The country is also benefiting from major infrastructure projects, including the Long Thanh International Airport and deep-sea ports in Haiphong, are strengthening its logistics position, while expanding industrial areas and cross-border e-commerce fuel growth in both sectors.

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