Vietnam Struggles To Tap Into Retail Revenue Potential Despite Welcoming Over Nineteen Million Tourists Due To Neglected Luxury Offerings And High-Quality Products

Published on December 12, 2025

Vietnam’s tourism sector has seen a surge in international visitors, with over nineteen million tourists arriving this year. However, despite this impressive growth, the country has struggled to convert these arrivals into significant retail spending. The primary issue lies in the underdeveloped retail infrastructure, where a lack of luxury offerings and high-quality products has left many tourists hesitant to make substantial purchases. While they eagerly indulge in local food, cultural experiences, and sightseeing, the absence of world-class shopping options limits their spending potential, holding back the country’s ability to fully capitalize on its tourism boom.

Vietnam’s tourism sector faces a paradox: while international visitor numbers soar, the country struggles to convert these arrivals into substantial retail spending. Despite welcoming more than 19 million international tourists in the first 11 months of the year, Vietnam’s tourism boom has yet to translate into strong retail revenues. Tourists eagerly indulge in food, cultural experiences, and sightseeing, but when it comes to shopping, their spending remains surprisingly low.

Experts suggest that the country’s underwhelming retail infrastructure and lack of high-end products are preventing it from tapping into the full potential of the tourism market. Many international travelers, particularly from Europe, the U.S., and Australia, often compare prices before making purchases, checking costs across Vietnam, duty-free outlets, and even their home countries. This hesitation results from a perception that high-end electronics, priced between VND 20 million and 40 million (US$760–1,520), do not offer significant advantages over what they can buy elsewhere.

Compounding this issue are concerns about returns, warranties, taxes, and documentation, which further discourage tourists from making significant purchases. As a result, visitors often limit their spending to inexpensive accessories, basic souvenirs, or items they need for the duration of their stay, rather than splurging on high-value goods.

Vietnam’s retail offerings appear too basic or mass-market to appeal to middle- and upper-income travelers, according to Pham Quy Huy, a director at a local travel company. These tourists often expect unique, well-branded products of higher quality. In regions like the Mekong Delta, visitors often stick to dining, walking around, and buying simple souvenirs such as conical hats, priced at just VND 20,000–30,000 (around $1). While some handcrafted products, such as items made from reed, lotus, or water hyacinth, generate more interest, they lack the strong branding and storytelling needed to capture the attention of higher-end shoppers.

Vietnam’s airports, which could potentially become major hubs for retail and entertainment, are another area where the country is missing an opportunity. Currently, the retail options at Vietnamese airports are limited, with duty-free shops offering only a small selection of products that often fail to compete with internationally recognized luxury brands in terms of variety and price. Additionally, amenities like dining options, lounges, spas, and entertainment spaces are sparse, leaving much to be desired in terms of the overall passenger experience. The slow, paper-based process for tax refunds also serves as a deterrent for travelers contemplating major purchases.

Regional competitors have set a high standard in this regard. Airports like Singapore’s Changi and South Korea’s Incheon have built expansive, multifaceted airport cities where travelers can shop luxury brands, dine at fine restaurants, attend cultural events, and relax in leisure zones. These hubs not only cater to a broader range of tourist needs but also generate far higher per-passenger spending.

Vietnam could boost its retail and tourism revenue by learning from these successful models. Expanding airport retail and dining options, creating immersive cultural zones, digitizing tax refund procedures, and improving connectivity between airports and city centers would go a long way toward attracting more spending from international tourists. In fact, some experts believe that the country has a major opportunity to attract affluent travelers, particularly those from Eastern Europe, Russia, Kazakhstan, and Southeast Asia.

Travelers from these regions are known for their preference for beach destinations, with nearly 80 percent of them choosing coastal areas for their vacations. A significant portion of these tourists also seeks nature-based tourism and cultural experiences, making them ideal candidates for a high-end, multi-channel marketing approach. With extended stays averaging up to two weeks, these travelers tend to bring their families along, further enhancing their spending power.

To capture this demographic, Vietnamese businesses should refine their marketing strategies, offering early seasonal promotions, personalized digital campaigns, and tailored high-end itineraries that align with the desires of affluent visitors. This means catering to their tastes for luxury retail, fine dining, exclusive cultural experiences, and comfortable accommodations.

Vietnam’s tourism sector has the potential to evolve into a top-tier global destination, but it will need to transform its retail offerings to meet the expectations of affluent international tourists. By leveraging its unique cultural assets and improving its retail infrastructure, the country could not only increase visitor spending but also raise its profile as a world-class destination, benefiting the broader economy in the process.