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Chapter 1. Introduction about the issue

Chapter 1. Introduction about the issue

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Vietnam has enough elements for the development of tourism into a
spearhead economic sector.
In 2008, Vietnam welcomed 4,218 million international passengers, this
figure in 2009 was 3.8 million, down 11% from the previous year. In 2012, the
number of international visitors to Vietnam is about 6.8 million, domestic
tourists reached 32.5 million. Revenue of Vietnam tourism in 2009 reached
approximately 68.000 billion 160,000 billion in 2012 . Tourism contributes 5%
to the GDP of Vietnam
However, Vietnam's tourism industry for many years, is also alarmed about
the victims "slash cut", visitors bullying, poor infrastructure, poor service
quality, and poor management, making a bad impression with tourists. For more
than 20 years of tourism development, Vietnam just focus on natural
exploitation-oriented development strategy, and lacks of investing in a basically
for travel, and other far countries in the region. There are still no theaters,
performing arts center good enough to introduce to international visitors, to
diversify cultural tourism products.
After the outbreak period 2008 - 2010 with several billion projects, from
2012 to now, a series of real estate projects (hotels and resorts) in the tourism
sector has been revoked. Data from the Foreign Investment Department showed
up to 20/6/2013, total FDI capital registered in the field of real estate business
more than $ 48 billion, down $ 1.7 billion compared to the end of 2012. This is
the area of FDI have also decreased in the largest amount. Among tourism
projects has been revoked, we have to mention the big names like Pearl of Asia
worth 2 billion euros in Phu Quoc of Trustee Suisse Group (Switzerland), The
world of Cultural wonders worth $ 1.3 billion in Vung Tau of Good Choice

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(USA). Additionally, more than 30 tourism projects in North Cam Ranh
peninsula (Khanh Hoa) are also warned to be revoked

due to delays in

implementation.
An expert in the field of investment management explained, due to the
global economic difficulties, raising capital is not like expected, the bosses can
not afford to deploy their commitments. However, Dr Le Dang Doanh - former
Director of the Research Institute for Economic Management Central said that
many units just like "take seat" rather than serious investment, so when the
situation becomes more difficult, there will be more hangged and slow conducted
projects
At the last session, some deputies asked questions "Vietnam tourism is not
developed commensurably to the potential" when it only ranked 80th out of 139
countries, behind Singapore, Malaysia and Thailand - the fewer of the national
natural and cultural heritage in the world. Minister Hoang Tuan Anh also said
the tourism infrastructure in Vietnam is inferior to other countries. "At present,
Vietnam has 575 hotels from 3 stars to 5 stars. Meanwhile, high-qualified
hotels in Thailand, Malaysia, Singapore more than us," . Prof. Nguyen Mai President of FDI Enterprises Association states that in the period that the world
economy is more volatile, do not need to make by all means more tourism
projects . We need to evaluate objectively which factors Vietnam tourism lacks
to attract investment. "Do not continue spreading state licenses for all projects
and then if they do not work, everything we can do is revoking," he said.
"There's still a lot to do with attracting investment in the hotel, tourism sector, ,

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one of the critical issues to promote Vietnam tourism development," the experts
concluded.
This is the reason our tourism needs attracting " green " FDI. It's time to act,
to save an indispensable economic sector.
1.2. Literature review
The paper work "Sustainable tourism in Vietnam - The indicators" of Dao
Huy Tuan has analyzed some factors which affects sustainable tourism
development in our country, as well as the role of that industry with our
economy. The author wrote : " Currently, sustainable tourism is not only a
temporary phenomenon , but a trend of the times, the targets set for development
and has important implications not only in economic terms but has special
significance for the sustainable development of the society, under the perspective
of community resources exploitation and environmental (including natural and
human) on a global scale. The indicator are often used for the purpose of getting
to know the fastest way of complex systems, such as issues relating to
sustainable development, to take timely measures, impacts to for development
activities easier, more regular and more easily identified. During the 40 years of
establishment and development, Vietnam tourism has made significant progress
and has now become an economic sector rightful place in the national economy.
However, the exploitation of natural resources for tourism development besides
the positive impact is gradually revealed negative effects: inadvertently
contributed to the degradation of natural resources, ecological environment
pollution , threatening the survival of natural ecosystems and endemic change
living habits of the species ... Sustainable development of tourism is the only

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solution to overcome the environmental pollution, limiting the ability to degrade
natural resources, maintaining biodiversity "
Another paper work " Some thoughts of sustainable tourism development "
- author Phan Huy Xu - Prof., Vice President, Head of Tourism Department,
Saigon College of Arts and Cultural Tourism should be taken into account. The
author has mentioned some concepts of sustainable, or "green" tourism, and
given some solutions to develop "green" tourism in Vietnam. " Although there
are several concepts, " green" tourism requires these factors. First, minimizing
negative impacts to the natural and human environment. Tourism must be
environmentally friendly. Second, ensuring the multiple benefits of the local
population. Increasing local incomes. Third, being responsible for tourism
development today and tomorrow, so "green" tourism means tourism
responsibilities "
On the other hand, the work " Green tourim development in Vietnam" of Dr.
Tran Van Hung has analyzed deeply the potential as well as solutions to develop
" green" tourism in Vietnam. The paper gives concept of " green" tourism: "
"Green" tourism is a type of nature and culture -based tourism , with
environmental education,

contributing to

conservation

and

sustainable

development efforts , with the active participation of local communities. In
recent years, "green" tourism has been growing rapidly in many countries around
the world and is increasingly attracting the attention of the broad social strata,
especially for those wishing to visiting and recreation. Besides contributing in
significant nature conservation, protection of biodiversity and cultural
community, the development of "green" tourism has brought enormous
economic resources, created additional employment opportunities and improved

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income for the country as well as local communities, especially people in remote
and sparse areas - where there are the natural reservation and the attractive
landscape. In addition, "green" tourism also contributes to improving people's
health and knowledge through environmental education, cultural history, and
recreation. Therefore, in many countries and regions in the world, besides the
economic benefits, "green" tourism is seen as a very effective solution to protect
the ecological environment through reducing pressure to exploit natural
resources to serve the needs of tourists, the local people to participate in tourism
activities. ". Moreover, the author stated the potential of Vietnam tourism
through a lot of figures : " Located in the belt of tropical monsoon climate,
Vietnam's territory stretches over 15 degrees latitude with ¾ is hilly and plateau,
with over 3,200 km of coastline, thousands islands ... On the territory that was
inhabited by many ethnic communities with a history of thousands of years of
water and struggling to keep up with the more traditional country has its own
characteristics, many cultural and historical monuments, Vietnam has many
facilitate the development of green tourism and ecotourism. Vietnam has a high
biodiversity, and ecosystem characteristics. Regarding the composition of plant
and animal species, in Vietnam there are 14 624 species of plants in 300
families, including many ancient and rare species, valuable species economy,
including more than 1000 species of medicinal plants, 100 species of edible
forest fruit ... About 11 217 animals to species and subspecies, including 1,009
species and subspecies of birds, 265 species of mammals, 349 species of reptiles,
amphibians, 2000 species of marine fish, 500 species of freshwater fish and
thousands of shrimp, crab , molluscs and other aquatic organisms. In mammals,
10 species of Vietnam tropical characteristics such as: Cross, Hill, flying fox,

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civet cartridge, loris, gibbon, Pangolin, elephants, tapirs, rhinos and especially in
the 20th century with 5 species New mammal discovered they were in Vietnam.
This proves that the biodiversity of Vietnam remains high and there may be
many new species in Vietnam. Along with the natural flora and fauna, Vietnam
is also a center of artificial plants. Worldwide, there are 8 crop center , 3 are
concentrated in the center of Southeast Asia (South China - Himalayas, India Burma, Indochina - Indonesia) with approximately 270 agricultural crops,
particularly in Vietnam has more than 200 plant species, of which 90% crop of
the Center for South China, 70% of central India plant, Myanmar. This is a
prerequisite for the organization of green tourism development "
1.3. Research purposes and missions
1.3.1. Research purposes
Through research on the development of tourism in Vietnam, that topic
follows the direction to clarify the impact of FDI on tourism, then recommends
measures to attract "green" FDI associated with sustainable development
Vietnam tourism
1.3.2. Research missions
- Clarifying the concept of "green" FDI Defining criteria to identify "green"
FDI.
- Considering the situation of Vietnam tourism development

as well as

deterioration in some resorts
- Researching some outstanding cases of Vietnam resorts
- Proposals and recommendations some immediate measures to attract "green"
FDI associated with sustainable development in Vietnam tourism

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1.4. Research questions
To achieve the above purpose, the following questions will be answered:
- What is " green " FDI? Why should Vietnam actively attract " green " FDI ?
- What does the development of tourism in Vietnam like? The infrastructure
system

in

Vietnam

tourist

areas

is

qualified

or

not

?

- What does Vietnam need to do to attach " green " FDI with the aim of
sustainable tourism development ?
1.5. Object and scope of research
Object of research: the research topic focuses on the development of tourism in
Vietnam, pointing out the solutions to attract " green " FDI for developing
tourism
Scope of research: Vietnam tourism industry in the period 2010-2013
1.6. Layout of the study
CHAPTER 1. INTRODUCTION ABOUT THE ISSUE
CHAPTER 2: SCIENTIFIC BASIS OF ATTRACTING " GREEN " FDI INTO
VIETNAM TOURISM
CHAPTER 3 : RESEARCH METHODOLOGY AND HYPOTHESIS
CHAPTER 4: RESEARCH RESULT
CHAPTER 5: SOME SOLUTIONS TO ATTRACT " GREEN " FDI INTO
TOURISM OF VIETNAM
CHAPTER 6. CONCLUSIONS AND EXCHANGE
CHAPTER 2: SCIENTIFIC BASIS OF ATTRACTING " GREEN " FDI
INTO VIETNAM TOURISM

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2.1. Concepts related to "green" FDI
In the present development stage of our country, the "green" economic is
becoming more and more urgent than ever. In recent times, the process of
economic development has caused so many problems of environmental
pollution, destruction and waste of natural resources of the country, and although
the economy is growth rate is relatively high, we are wasting a lot of resources
(Pham Chi Lan, 2013). In this condition, the issue of "green" FDI in recent years
has become a hot issue , attracting the attention of many economists and
investors.
"Green" FDI is the capital of foreign direct investment to help protecting
and improving the natural environment, can appear in any industrial sectors and
in all stages as well as the level of technology of chain treatment. This inflows of
foreign companies are invested in environmentally friendly projects as well as
establishing a form of cleaner investment , more efficient production processes.
"Green" FDI also help reducing greenhouse gas emissions and global climate
change.
2.2. The necessity to attract “ green “ FDI into tourism of Vietnam
2.2.1.The importance of tourism to Vietnam economy
In terms of economy, tourism is a service sector whose products rely on and
includes high - qualified products of the different economic sectors.So today's
tourism industry is not only an effective economic sector, but it is also an
economic leverage which is promoting the development of other economic
sectors, create the initial accumulation of the economy, is an important means to
the open-door policy, as a bridge between the outside world and domestic.

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Tourism is a clear influence on the development of the econom by tourists'
consumptions . Tourism is to satisfy the consumers' demand for material goods
and non-material goods. Hence, the demand for services is recognized by
travelers interest
Tourism activities can change the balance of revenue and expenditure of the
country and the region. International tourists bring foreign currency into
the country they travel to, increasing foreign exchange earner for the country.
Within the scope of a nation, tourism activities disturb the circulation of money
and goods. When one area becomes a tourist destinations, tourists from
everywhere flocking will make the demand for all goods increased significantly.
It requires a mountain of materials and goods has stimulated strongly relevant
economic sectors , especially agriculture, processing industry..... Besides,
supplies

of

goods

for

tourism

requires

high

quality,

rich

in

types, beautiful and attractive forms. This means that requested goods
must be produced in a high-tech, advanced level to meet the demands of visitors.
International tourism is a means of propaganda and advertising which are
not losing money . Specifically, when coming to a particular resort, customers
are familiar with some items. Upon returning to the country , those customers
start

looking

for

those

things

in

the

local

market

and

if

not found, customers can request the foreign trade to import items . In this way,
international tourism contributes to the propaganda of our country's production.
2.2.2. The degradation of Vietnam environment has bad effects on
developing tourism

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Vietnam has over 3,260 km sea shore with 125 large and small beaches,
about 2,273 coastal islands, 44 smaller puddles - bays, 1,120 coral reefs,
252.500ha mangroves and distribution of seagrasses from the North to the South.
Therefore, Vietnam's sea tourism is considered a lot of potential and strengths.
However, several accommodation facilities, tourist services built on the islands
are not as planned, which have
degradation

of

island

increased risks of shoreline erosion and

ecosystems.

Untreated

wastewater

from

the

accommodation facilities, tourist services directly discharged into the
environment increase the level of organic coastal water. Apart from oil pollution
of coastal water by boats transport tourists, recreation facilities, water sports,
coral mining to serve demand for souvenirs ... also contributed to the degradation
of tropical ecosystems. Consequently, the famous beaches of Vietnam is facing
the risk of pollution of the water environment seriously.

CHAPTER 3: RESEARCH METHODOLOGY AND CASE STUDY
3.1.Research methodology

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In this subject, the study used the case study methodology to collect
sufficient data in a systematic way about Vietnam tourism development. This
methododology also allows the study to focus on the analysis and evaluation
responsibilities of FDI projects in environmental protection
The study will select a number of typical scenarios of environmental
pollution in tourist areas to study and confirm that " Vietnam environment is
severely damaged. If not focusing on improving the situation, as well as
attracting FDI to invest in tourism development, smokeless industry of our
country will soon going into impasse.
3.2. Theoretical framework and propositions
"Green" tourism is a type of nature and culture -based tourism , with
environmental education,

contributing to

conservation

and

sustainable

development efforts , with the active participation of local communities. In
recent years, "green" tourism has been growing rapidly in many countries around
the world and is increasingly attracting the attention of the broad social strata,
especially for those wishing to visiting and recreation. Besides contributing in
significant nature conservation, protection of biodiversity and cultural
community, the development of "green" tourism has brought enormous
economic resources, created additional employment opportunities and improved
income for the country as well as local communities, especially people in remote
and sparse areas - where there are the natural reservation and the attractive
landscape. In addition, "green" tourism also contributes to improving people's
health and knowledge through environmental education, cultural history, and
recreation. Therefore, in many countries and regions in the world, besides the
economic benefits, "green" tourism is seen as a very effective solution to protect