Vietnam Struggles to Turn Record Visitor Numbers in Hanoi, Ho Chi Minh City, and Mekong Delta Into Lucrative Retail Profits Amid Tourist Spending Gaps – Here’s What to Know

Published on December 13, 2025

Vietnam’s tourism sector has been experiencing an incredible surge, with more than 19 million international visitors arriving in the country over the first 11 months of the year. However, despite the large number of tourists flocking to Vietnam’s stunning beaches, historical landmarks, and vibrant cultural attractions, the country faces a significant challenge in converting this influx into substantial retail revenue. This disconnect is largely attributed to a lack of world-class shopping infrastructure, high-end products, and a shopping experience that appeals to affluent international travelers.

While tourists indulge in Vietnam’s world-renowned cuisine, explore its lush landscapes, and visit bustling cities like Ho Chi Minh City and Hanoi, retail spending remains disappointingly low. International visitors typically purchase affordable souvenirs, local crafts, and basic accessories, but they are hesitant to make significant purchases. A key reason for this reluctance is the limited variety and high prices of products, which fail to offer clear value when compared to shopping options in their home countries or duty-free outlets elsewhere.

Retail Spending Struggles Despite High Visitor Numbers

The lack of sophisticated shopping experiences has resulted in modest retail spending from tourists. Many visitors, particularly those from Europe, the U.S., and Australia, are known for comparing prices across various locations before making a purchase. Despite the wide range of electronics, apparel, and souvenirs available, the items rarely offer enough appeal to sway these shoppers into spending more. While high-end electronics in the price range of VND20-40 million (US$760–1,520) are available, tourists often find them comparable to what is offered in their home countries, which diminishes the incentive to buy.

The complexity of the purchasing process also deters tourists from investing in larger purchases. Concerns about returns, warranties, taxes, and the documentation required for major items discourage many from making significant retail investments. The lack of cultural storytelling surrounding local products, especially in regions like the Mekong Delta, also contributes to this issue. Tourists often find themselves purchasing low-cost accessories such as conical hats, valued at around VND20,000–30,000 ($0.75–$1.13), rather than indulging in higher-end souvenirs that could have a greater economic impact.

Opportunities at Airports and the Need for Better Infrastructure

One area where Vietnam could capitalize on tourist spending is at its airports. While many international airports in Asia and Europe, such as Singapore’s Changi Airport and South Korea’s Incheon, have developed extensive retail hubs offering luxury goods, dining, and entertainment, Vietnamese airports still fall short. Many airports in the country currently feature only basic duty-free shops with limited product offerings. Luxury goods, which are a major draw for affluent international tourists, are also sparse or absent.

If Vietnam were to transform its airport terminals into dynamic shopping destinations, similar to the airport cities in Singapore or South Korea, it could significantly increase per-passenger spending. This could be achieved by expanding dining options, creating cultural showcases, improving tax refund processes, and offering more immersive entertainment experiences. Making these adjustments would not only increase sales but could also establish Vietnam as a global shopping destination, attracting shoppers from around the world.

Boosting Retail Spending Through Targeted Campaigns

Experts suggest that Vietnam could enhance its retail offerings by better targeting the affluent tourists who are already showing an interest in the country. Middle- and upper-class travelers, particularly from regions like Eastern Europe, Russia, and Southeast Asia, tend to stay longer and spend more on luxury items and experiences. For instance, many of these travelers prioritize beach destinations, nature-based tourism, and cultural experiences, with a significant number traveling with their families.

This affluent group represents a major opportunity for Vietnam’s tourism sector, but to capture their attention, the country must offer high-quality services, luxurious accommodations, and upscale retail options that appeal to their tastes and expectations. Crafting personalized itineraries, launching seasonal promotions, and targeting potential travelers through multi-channel digital campaigns are just a few strategies that could help increase the average spending of these visitors.

By refining their product offerings, such as introducing luxury retail outlets and providing premium dining experiences, businesses in Vietnam can appeal to these high-spending tourists. Furthermore, aligning the country’s cultural offerings with tourists’ desires for authentic, high-quality experiences could make Vietnam a preferred destination for affluent travelers looking for unique products that blend cultural authenticity with luxury.

Creating Unique and High-Quality Retail Experiences

At the heart of transforming Vietnam’s tourism retail experience is the need for culturally distinctive products that tell a story. Vietnam’s vibrant crafts, such as those made from reed, lotus, and water hyacinth, already attract attention. However, these items need better branding and stronger marketing to appeal to tourists seeking high-quality, one-of-a-kind souvenirs. By focusing on product uniqueness and authenticity, Vietnam could create a shopping experience that not only attracts but also retains the interest of high-value travelers.

Additionally, implementing advanced digital solutions for tax refunds, offering more efficient procedures, and creating an integrated shopping experience from airport to city center would help keep affluent travelers engaged and satisfied with their retail purchases.

Potential for Growth: A Promising Future for Vietnam’s Tourism

If Vietnam succeeds in bridging the gap between high visitor numbers and significant retail spending, it stands to greatly enhance its tourism revenue. This shift could also elevate the country’s position as a world-class destination, drawing in more international tourists who are eager to spend on both experiences and luxury goods. As Vietnam continues to grow as a global tourism hub, its retail sector will need to evolve to match the expectations of an increasingly discerning traveler base.

By focusing on luxury goods, high-end retail, digital experiences, and culturally-rich products, Vietnam could unlock a new era of tourism revenue that not only benefits local businesses but also enhances the country’s appeal as a premier shopping and cultural destination.