Foreign Investment Continues To Flow Into Hospitality Market

07/04/2021, 08:52 AM

The hotel industry has faced many difficulties in the past year, but despite the challenges, foreign investors are still launching new properties in Vietnam.

During an exchange between Hoang Anh of VIR and Michael Piro, COO of Indochina Capital and CEO of Wink Hotels, discussed the brand's upcoming first property and why investors Foreign investors remain optimistic about the Vietnamese hotel market.

The potentiality of Vietnam's tourism in 2021 is demonstrated through factors such as that Vietnam has effectively prevented and controlled the COVID-19 epidemic, and the need to move domestically is not much restricted. In 2020, Vietnam is among the few countries to record a positive GDP growth rate; Become one of the world's leading destinations for foreign direct investment.

The Vietnam Tourism Association has initiated a plan to welcome visitors from international markets and Vietnam is expected to be a top destination because of the importance of safety to visitors.

Currently, nearly 80% of the hotel supply is "unbranded", meaning hotels smaller than 100 rooms, mostly independently managed by locals. This means that there is still an opportunity for foreign investors to offer branded products to international quality standards. As well as serving for the fast paced life of the dynamic young generation in Vietnam.

Wink Hotels is part of an initial $ 1 billion investment commitment of Indochina Kajima, a joint venture of Indochina Capital with Kajima Corporation, in Vietnam. Their next markets will be Hanoi and Da Nang, and then will expand to secondary markets such as Can Tho, Hai Phong, Vung Tau and Tuy Hoa.

The hotel opening during Covid-19 created new challenges, including technology deployment, being environmentally friendly and sustainable, personalizing the guest experience and maintaining quality human resources.

According to representatives of Wink Hotels, the original designs and ideas helped them overcome many challenges. Hotels integrate modern technology with many customer support features. Cooperation is also key to overcoming these challenges.

Executives need to work with local authorities and companies on innovative manpower training and customer experience packages to encourage people to travel back in 2021.

 

Source: Vietnam Investment Review

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