Ho Chi Minh City is destined to reach Gross Regional Domestic Product (GRDP) growth of between 8.3% and 8.5% for 2018, according to a January 2 conference on the city’s socio-economic development.

HCM City has outlined 20 developmental goals in 2018, the first year of realizing its pilot specific mechanism, focusing on administrative reform, investment attraction, infrastructure building, and start-up encouragement. 

Su Ngoc Anh, Director of the municipal Department of Planning and Investment said to meet the set targets, at least 35% of GRDP must be allocated for development investment and it is imperative to mobilize a total investment capital of US$8.5 billion this year.

At a get-together with HCM city authorities, local businesses were confident that the new specific mechanism granted by the National Assembly will ensure the city becomes a magnet for investors and further promotes the private sector.

Nguyen Kim Thoa, Director General of the Hi-Tech Golden Stork group said, “We hope the national economy will achieve greater progress. We are looking for better access to capital and preferential policies to develop Vietnam’s agriculture in the time ahead.

Vietnamese exports enjoy stellar growth

Vietnam’s export turnover has seen spectacular growth over the past 11 months considering the nation’s adjustment for the reduction in natural resource exports.

Vietnam’s export growth performance has become a highlight of the national economy in 2017 as total import-export revenues reached the US$400 billion milestone, with exports estimated to make up the impressive figure of US$200 million.

Economic adviser Vo Tri Thanh has attributed the country’s bright economic outlook in 2017 to Vietnam’s successful hosting of the APEC Economic Leaders’ Week with the signing of trade deals worth up to US$20 billion, the exponential growth of 21% against the set target of 10%. 

Such growth is attributed to the development of domestic enterprises and increases in exports farm produce, especially seafood, fruit and vegetables.

Economist Luu Bich Hop in points hi-tech agriculture as a success of restructuring in agriculture, noting that shift to hi-tech will enable the agriculture economy to shape into a sustainable farming model with a focus on the development of clean and organic farming. 

Despite natural calamities and the effects of climate change, this year has seen the agricultural sector undergo major developments with a dramatic shift from rice to shrimp production and interconnection between farmers and businesses to enhance processing capacity and increase the value of exported products.

Vietnam has taken full advantage of the opportunities presented through bilateral and multilateral free trade agreement suit has negotiated to increase the country’s standing as a goods exporter from 50thto 26th place over the past ten years.

Dr Luong Van Khoi, Deputy Director General at National Centre for Socio-Economic Information and Forecast says Vietnam’s economic growth this year has lessened its dependence on mining exploitation while the country has intensified the expansion into foreign export markets through FTAs.

Regarding the quality of exports growth with the agricultural sector recording a trade surplus of US$7 billion, Minh Phong says Vietnamese businesses have been on the right track to boost agricultural investment and focus on increasing quality rather than quantity.

Regarding the country’s trade balance, despite the nation enjoying its highest trade surplus so far, atUS$3.17 billion, this number is mainly the result of the import and export activities of foreign-invested enterprises (FIEs).

FDI businesses enjoyed a trade surplus of over US$23.8 billion while domestic businesses have run a trade deficit of up to US$20.67 billion.

Dr Nguyen Minh Phong says for the improvement of import-export restructuring, Vietnam needs to develop services, especially logistics services to realize the desired surplus in service exports and map out a development strategy for the support industry by integrating with the global supply chain to secure export markets. 

Laguna Lang Co to receive casino add-on by 2021

Once the casino project under Laguna Lang Co integrated complex is approved, the investor plans to develop and take the casino into operation by 2021 with 500 electronic gaming machines and 50 card shufflers. These figures will increase four times by 2029.

lAccording to newswire Vnexpress, the Ministry of Planning and Investment (MPI) has proposed the prime minister to permit to adjust the capital added to Laguna Lang Co from $175 to $300 million, increasing the project’s total investment capital from $874 million to $2 billion and open a casino while adjusting the duration of building the project (including the casino and other stages), based on the proposal of Thua Thien-Hue People’s Committee and the investor.

According to the investor’s plan, the casino is expected to come into operation by 2021 with 500 electronic gaming machines and 50 card shufflers. 

The figures are expected to increase to 2,000 machines and 200 card shufflers by 2029. Besides, the investor will add six five-star hotels and more than 2,200 villas and apartments.

Before sending the document to the prime minister, MPI reminded the investor to improve its financial capacity and prepare feasible operation plans in line with Vietnam's regulation in order to control the operations as well as prevent the negative impacts of the casino business on Vietnam.

Regarding the duration of the construction, MPI proposed the prime minister to permit the investor to develop it by 2026 instead of 2030 as the investor requested.

If approved, Laguna Lang Co will contribute $245 million to the province’s budget each year from 2021.

Starting operations in March 2013, the $875-million Laguna Lang Co Resort is located near Lang Co Bay, framed by a three-kilometre beach in Chan May region.

This development includes Banyan Tree and Angsana hotels and spas, an 18-hole championship golf course designed by Nick Faldo, private villas and residences available for sale, convention facilities, and a plethora of recreational activities for guests of all ages.

Numerous foreign investors visited Thua Thien-Hue looking to develop casino projects. In late July, US-based casino operator and hospitality business Hard Rock International Inc. confirmed its interest in developing a casino at Laguna Lang Co integrated resort complex.

Daniel Cheng, Hard Rock’s senior vice president for casino business development in Asia, told GGRAsia that Hard Rock finished all site studies and completed all project financing. 

All the company is waiting for is the Vietnamese government to issue the casino license after which Hard Rock can put the spade to the ground immediately.

Sojitz Corporation targets Vung Tau Airport relocation project

Large-scale Japanese business Sojitz Corporation expressed intentions to co-operate with Song Hong Investment Construction Trading JSC to implement the relocation of Vung Tau Airport to Go Gang Island located in Long Son commune, Ba Ria-Vung Tau province. 

Responding to the investor’s plan, the Ba Ria-Vung Tau People’s Committee has asked the province's Department of Planning and Investment as well as relevant authorities to supply initial information for investors as well as support them during the study process.

Vung Tau Airport covers an area of 172 hectares in the centre of Vung Tau city, which is a crowded residential area. The airport, managed by Southern Service Flight Company under the Ministry of Defence, hosts helicopter flights to serve oil exploration and exploitation activities at sea with a capacity of 100,000 passengers and 500 tonnes of cargo per year.

However, after considering the airport’s effect on the city’s space development plan and the flights’ threat to the lives of the locals, in September 2013 provincial authorities agreed to relocate the airport to a less densely populated area on Go Gang Island, some 12 kilometres away from the centre of Vung Tau city.

The cost for building a new airport was expected to be over $1 billion. The relocation project was then approved by the prime minister. Accordingly, the new airport will be built for both civil and military purposes, with funds coming from the national budget and investors.

However, as of now, the project has yet to be implemented because the province and relevant authorities have yet to find a suitable relocation plan.

Sojitz Group consists of approximately 400 subsidiaries and affiliates from Japan and around the world, with wide-ranging general trading company operations in a multitude of countries and regions.

Recently, Sojitz Planet Corporation, the plastic division of Sojitz Corporation, formed a strategic partnership with Rang Dong Plastics JSC to set up a new venture called Rang Dong Long An.

With total investment capital of $32 million, Rang Dong Long An is a 80:20 venture between Rang Dong Plastics and Sojitz Planet. The project will house three factories on an 8.7-hectare area in the southern province of Long An. The factories will apply the latest technology from Germany, Italy, Japan, Taiwan, and Korea.

Saigonese turn to homegrown veggies for meals, Tet gifts

Spooked by unsafe greens sold at markets and supermarkets, more Saigonese are now growing their own vegetables at home for meals and giving as Tet presents.

As tainted veggies posing serious health hazards to consumers are rife on the local market, including those imported from China, a rising number of residents in the southern metropolis have removed vegetables available there from their daily menus. 

They come up with a more cost-effective, fail-safe approach: growing their own veggies or getting agricultural specialists to tend to them in their rented areas or in their own gardens or terraces.

The practice also serves as an eco-friendly, rewarding pastime, provides opportunities for family get-togethers and helps growers as well as their families, particularly children, better appreciate the fruits of their labor.

More companies have thus begun to offer ‘package’ services, supplying their clients with high quality saplings, as well as counseling and training in applying various affordable cultivation technologies such as aeroponics, or a process of growing plants in an air or mist environment without the use of soil or an aggregate medium.

After a night rain, the veggie beds on the rooftop of a house in Binh Tan District owned by Bui Thi Thuong look as verdant as those grown on silt-laden soil.

She began using her entire rooftop space to cultivate over 20 varieties of vegetable and set up a frame of perennial climbing squash two years ago.

Thuong revealed she started germinating seedlings of net melons, cauliflowers, and cabbages two months ago, in time for this Tet harvest.

This year’s Tet (Lunar New Year) will begin on February 16 and linger for one week or so.

Her yield last year was big enough to sustain her family’s meals while also providing gifts for her relatives and friends for the festive occasion.

Short of time to tend to vegetables, Tran Van Thao, director of a construction company, took to growing his greens on vertical aeroponic towers, which would allow him access to hygienically ensured, nourishing produce.

In his home in Binh Tri Dong B Ward, Binh Tan District, Thao has turned his 50m² rooftop into a green space with a fish pond and five vertical aeroponic towers watered by an automatically operated irrigation system.

After two months, all his five towers have begun yielding verdant lettuce and morning glory.

He divulged that he had sowed his second batch of morning glory in time for Tet consumption.

Similarly, despite living a stone’s throw from An Dong Market, District 5, one of the city’s major conventional markets, Chan Duc and his family have put veggies grown aeroponically in 1,600 holes on his rooftop on their daily menu.

The entire system cost over VND20 million (US$879) and the automatically operated watering towers require around 9m² space.  

“We can rest absolutely assured about our access to hygienically guaranteed vegetables,” Duc noted.

More growers have also adopted hydroponics, a method of growing plants without soil, using mineral nutrient solutions in a water solvent; or aquaponics, which refers to any system that combines conventional aquaculture (raising aquatic animals such as snails, fish, crayfish or prawns in tanks) with hydroponics in a symbiotic environment.

Over recent years, companies specializing in gardening tools and techniques have mushroomed and offered various packages at different prices.

Realizing the benefits he had reaped by growing his own veggies, Truong Binh Son has established a firm which offers vegetable-growing services.

Towers manufactured at his company fetch VND1.5-VND2 million (US$66-US$88) apiece.

Many families have opted for the aeroponic model for its limited space required, automatically operated watering system and diversity of greens on each tower, Son explained.

Apart from vegetables, Son’s company is also germinating breeds of flowers on vertical aeroponic towers to cater to booming Tet demand.

Likewise, Pham Thanh Loc, director of a hi-tech agricultural service company based in Cu Chi District, supplies a nine-tube aeroponic system with 400 holes, which takes up a floor area of a mere 1.5m², for VND6.5 million (US$286).   

His products have been in good demand and fervently embraced by consumers across the country.

As the service is thriving, his staff have their hands full catering to a soaring demand as Tet is two months away.

According to Vo Thi Thu Ha, who runs a company specializing in hydroponic veggie-growing services in Ho Chi Minh City, families need only a 2m² space on their terrace or balcony to set up a 100-pot veggie garden.

Her systems are priced at VND3.6 million (US$158) to VND8 million (US$351) apiece.

Ha’s company also offers packages including saplings, tending, nutrition and harvesting at clients’ homes.

“We normally germinate 10,000 saplings. The number triples to cater to Tet demand, but we still run out of stock,” she said.

Many businesses sell aquaponic models installed on terraces for VND8 (US$351) million to VND25 million (US$1,099).

Le Phuong Vy, representative of a local hydroponic veggie-growing business, disclosed there were only a few firms offering home growing services five years ago with a handful of clients each month.

His current number of rivals has surged to dozens, with sales also rising dramatically.

According to statistics released by five major businesses in Ho Chi Minh City, each installs 20-30 aeroponic and hydroponic systems at local households monthly.

Around 70% of these households continue to use the companies’ accompanying services including hydroponic nutrition, seeds and seedlings.

FLC Group Chairman becomes richest man in stock market 2017

The Chairman of FLC Group Trinh Van Quyet became the richest man working the stock market in 2017 at the end of trading on December 29.

The FLC Chairman holds a portfolio of shares worth VND58,851 billion, an increase of VND25,045 billion compared to 2016. Mr Quyet’s portfolio includes 318,514,630 of ROS shares, 135,187,150 FLC shares, and 2,630,000 of ART shares. 

Chairman of Vingroup Pham Nhat Vuong ranks in second place with a total capitalization of VND55,962 billion, followed by Tran Dinh Long, Chairman of Hoa Phat Group Joint Stock Company with VND17,875 billion, and Nguyen Thi Phuong Thao, President and CEO of Vietjet Air with VND17,669 billion. Ms Thao now holds shares in VJC and HDB. 

With plans to list on the Ho Chi Minh Stock Exchange in 2018, there will be further changes in Ms Thao’s rank in the stock market.

Wife of the Vingroup Chairman Ms Pham Thu Huong secured fifth position with a total capitalization of VND9,650 billion, trailed by Mr Bui Thanh Nhon, Ms Pham Thuy Hang, Ms Vu Thi Hien, Mr Nguyen Van Dat, and Ms Le Thi Ngoc Diep – wife of Mr Trinh Van Quyet.

The ten richest billionaire shareholders now hold a total capitalization of VND189,636 billion, equivalent to 50% of the value of the 1,000 richest people on the securities market.

Developing Vietnam’s organic agriculture

Organic agriculture and environmentally friendly farming are a global trend. The world has approximately 43 million ha of organic farm land and the estimated global market for organic food is around US$80 billion.

Vietnam has more than 70,000 ha of organic farm land in 33 localities. But organic products are rare in the market because of high prices, and a lack of assessment criteria and certification. Customers are confused about clean versus organic products. 

Le Thanh, Head of the Institute of Vietnam Organic Agricultural Economics, said Vietnam should stay focused on products such as herbal medicines and coconut oil for export. Production of organic vegetables and fruit should be increased for domestic sales in competition with imported varieties.

Le Thanh said, “We need to improve community awareness of organic agriculture, geographic indications, and organic producers.  We need to establish a distribution network of reliable suppliers and sellers. The media should increase communications about organic products, nutrition, and environmental protection. Incentive policies for organic enterprises and producers are needed.”

Deputy Minister of Agriculture and Rural Development Tran Thanh Nam said that to meet challenges and promote organic agriculture, the key is to fine tune economic mechanisms and policies. The Ministry will work with relevant agencies to compile a decree on organic agriculture to submit to the Prime Minister.

 “We should focus on producing safe products following VietGap and GlobalGap standards and sustainable and environment-friendly production, particularly organic farming. We’ll propose measures to the government to strengthen organic agriculture”, Mr Nam noted. 

Organic agriculture will help sustain the ecosystem while providing customers good nutrition.

GS Retail picks Ho Chi Minh City as first overseas target

GS Retail, the Republic of Korea’s biggest convenience store franchise, was reported by Korea Herald on December 29 as saying that it will open the first GS25 outlet in Ho Chi Minh City in mid-January 2018.

Following the launch of the first outlet in January 2018, GS Retail plans to open four convenience stores in the city in the following month. The company plans to develop more than 2,500 GS25 outlets in Vietnam within 10 years.

In July, GS Retail inked a deal with SonKim Group to establish a joint venture running the convenience store brand GS25 in Vietnam. GS Retail will invest 10 per cent in the company, while Sonkim Group will own 70 per cent.

Under the agreement, GS Retail will offer trademark rights, skills, and knowhow on convenience store chain management. In return, the joint venture will pay GS Retail royalties and dividend tantamount to the 30 per cent interest. 

The venture marks GS25’s first move to expand overseas. GS Retail expects that its presence in Vietnam will become a stepping stone for its overseas expansion in China and Cambodia.

According to GS Retail, the convenience store business is highly likely to succeed in Vietnam, thanks to the country’s rising consumer demand and large population of people under the age of 35.

Businesses should better equip themselves for economic int'l integration

Local businesses in the process of international economic integration are being advised to invest wisely and make greater efforts to actively improve their competitiveness, management skills, and production methods.

At the recent Vietnam International Economic Integration Forum 2017 on the theme ‘Reinforcing momentum for a new development phase’, Dr Nguyen Dinh Cung, Head of the Central Institute for Economic Management (CIEM) attributed domestic businesses’ limited capacity to move up the global supply chain to a lack of long-term strategies for human resources development, unplanned application of advanced technologies in production line modernisation, and ineffective ways in building trust among customers and partners.

Most small businesses are working with obsolete business methods and have not done the necessary groundwork to benefit from the opportunities offered by Free Trade Agreements (FTAs). Businesses lack both the knowledge and plans of implementation required for international economic integration, Mr Cung emphasized.

The representative from CIEM brought attention to worrying statistics that indicates 63% of local businesses are not equipped for international integration and only 0.001% has been adequately prepared for the process.

Therefore, it is imperative to work out strategies for better institutional reforms and a supportive low cost business environment. The fact is that the current institutional hurdles are preventing businesses from capitalizing on the opportunities for economic international integration but they are giving better opportunities for foreign businesses, Cung noted.

Mr Cung highlighted the importance of stepping up institutional reforms, improving the investment environment, alter the conduct of civil servants, and  provide better insights into businesses’ internal problems so that businesses achieve steady growth as a contribution to the country’s further success in the coming years.

Le Tien Truong, general director of the Vietnam National Textile and Garment Group (Vinatex), and also Vice Chairman of the Vietnam Textile and Apparel Association (Vitas), said that in the10 years of membership of the World Trade Organization (WTO), the textile and garment sector has taken full advantage of the benefits presented in FTAs to lift its export turnover toUS$31 billion. and has managed to conquer  major markets such as the US, Japan, and the Republic of Korea.

He noted that in the context of Vietnam’s participation in international integration, the clothing industry hopes that the Government concentrate efforts to hasten new-generation FTAs, consult with businesses throughout negotiations, and facilitate payment systems. Meanwhile, businesses need to improve their market research capacity and better exploit FTAs.

From the perspective of an investor, Ms Dang Thi Minh Loan, deputy managing director of Vinacapital, local businesses now face major challenges such as the limited scale of investment, and market and customer network, low production capability, and a lack of leadership personnel.

Many Vietnamese businesses have partnered with foreign businesses to develop (mergers and acquisitions) M&A capability as this is one of the most effective and fastest ways to expand their scale of operations.

Regarding the positive impacts of the Vietnam-EU FTA, Gellert Horvath, co-chairman of Eurocham said  staple exports items to the EU such as coffee, clothes, leather, and footwear will see an increase of 30-40% in the coming years thanks to FTAs, adding that the country should boost exports of other goods such as tea and bamboo products.

EuroCham has received a slew of requests from Vietnamese businesses looking for help to introduce their products to the EU, he said while underscoring the importance of ensuring food safety and hygiene standards to meet the strict requirements set by the EU.

Vietnam’s efforts to improve the investment climate, revamp the legal system and ensure the quality of agricultural products will help the country grow into one of the world’s leading nations in agricultural production, he added.

French media appraises Vietnam as most effective economy in region

Vietnam has enjoyed strong economic growth in the past decade and become one of the most effective economies in Southeast Asia, online versions of the French financial La Tribute and Les Echos Investir magazines wrote on December 28.

Vietnam achieved gross domestic product (GDP) growth of 6.81%, surpassing the Government’s target of 6.7%, they said. Key contributors to the economic expansion were agriculture and exports, with surges seen in shipments of Nike and Samsung products.

The articles noted that privatisation and capitalisation were important elements for the country’s growth.

The French publications also noted the World Bank’s projection that Vietnam would have GDP growth of about 6.5% in 2018. 

However, the bank noted the country needs to cut public debt and improve the efficiency of the State-owned economic sector to achieve this.

Over 7,000 digital coin mining machines imported into HCM City in 2017

Over 7,000 cryptocurrency mining modules have been imported into Ho Chi Minh City this year, according to the municipal customs department.

In total, 7,005 mining modules were cleared for import into the southern hub as of mid-December, most of which originated in China.

According to the Ho Chi Minh City customs department, only about 1,400 mining modules had been shipped to the city between January and October, including 1,310 machines specifically designed for mining bitcoin and 620 designed for mining litecoin, two of the most popular digital currencies on the market.

However, the price of bitcoin surging to nearly US$20,000 over the past two months has led to a hype for mining the coin in Vietnam and the importation of over 5,000 mining units in just about eight weeks.

The increase in mining machine imports is due, in part, to an announcement by the General Department of Vietnam Customs giving the green light for local customs departments to clear the importation of such machines, citing the fact that they do not fall under the list of banned items according to current laws.

Cryptocurrency mining is the process of solving computationally difficult puzzles – complex computer algorithms set by a blockchain that powers a digital currency – through which new coins are released and awarded to successful miners.

In the early days of digital currency, coins could be mined using central processing units (CPUs) from regular desktop computers, or graphic processing units (GPU) for more efficiency.

Eventually as puzzles became increasingly harder to solve, specifically designed hardware for cryptocurrency mining, known as application-specific integrated circuits (ASICs), rose to popularity.

Today, mining digital coins has become so competitive that it can only be profitably done using machines running the latest ASICs, as mining with CPUs or GPUs would result in the cost of energy consumption being greater than the revenue generated.

The issuance, supply, and usage of cryptocurrency, including bitcoin, litecoin and other digital or virtual currency that uses cryptography will be outlawed in Vietnam for security reasons once the amended Penal Code of Vietnam takes effect on January 1, 2018.

2017- A good year for paper industry

2017 has been a good year for the paper sector which has seen production capacity grow at a rate of 50% and exports increase by 14.5%.

The sector is forecast to maintain its growth pattern in 2018 despite the presence of numerous difficulties ahead as China - a major paper importer has lowered the current 1.5% impurity level to 0.5%.

Despite Vietnamese paper and paper products having been exported to more than 17 countries and territories around the world, the number of  major consumers of Vietnamese paper is still quite modest compared to other export sectors.

According to statistics provided by the General Department of Vietnam Customs, there has been an estimated US$59 million worth of paper exports in December, which brings this year’s total export value for to US$732 million, a year-on-year rise of 14.5%, driven mainly by demand from the three major importers of China, the US, and Japan.

The geographic proximity and favourable transport conditions have facilitated China surpassing Japan this year to become the top consumer of Vietnamese paper with the 11-month exports to the Chinese market increasing dramatically by more than 27.5 times the amount for the same period last year to US$105.7 million.

However, the two other major importers – the US and Japan – suffered declines of 0.51% and 2.42% to US$80.6 million and US$79.9 million, respectively.

Exports to Taiwan (China), the fourth largest market, surged by 4.68% to US$78.5 million, Indonesia up 108.46% to US$28.9 million and Thailand up 105.19% to US$12.4 million.

The sector will be getting for major realignments next year by using advanced technologies, incentivising businesses to adhere to the strict requirements of environmentally friendly and green products.

While the sector is experiencing strong growth, it is faced with many challenges, such as the fierce competition between domestic and foreign businesses in local and export markets, and falling paper demand in response to the robust development of communications technology and the prevalence of social networks which has resulted in a drop in consumption of print media.

Paper businesses have set their sights on establishing connections with new markets and partners through participation in the 7th Vietnam International Exhibition on Pulp and Paper Industry (Paper Vietnam 2018) scheduled to be held from June 13-15 at the Saigon Exhibition and Convention Centre.

PhúYên to host investment promotion conference

The central province of PhúYên will organise an investment promotion conference on January 19 with the participation of some 350 foreign and domestic businesses.

The event aims to publicise PhúYên’s advantages, potential and policies, as well as provide a platform to those sectors seeking investment until 2020, the provincial People’s Committee vice chairman Phan Đình Phùng told baodautu.vn.

He said the local authorities hoped to receive suggestions from foreign and domestic firms that can help PhúYên to improve its investment and business climate.

The province is seeking investment in a wide range of sectors, including infrastructure, agro-forestry-fishery, textile and garments, energy, electronics, ICT, mechanical engineering, supporting industry and tourism, said Lê Tấn Hổ, director of the provincial Department of Planning and Investment.

Latest reports of the Foreign Investment Agency reveal that PhúYên has so far attracted 45 projects with foreign investment worth more than US$4.96 billion. This has helped PhúYên rank 16 among 63 provinces and territories in terms of attracting foreign investment.

Chinese tourists top list of foreign arrivals to Vietnam

China took the lead in the numbers of foreign arrivals to Vietnam with more than 4 million visitors last year, accounting for 31% of the total number of foreign tourists, according to the Vietnam National Administration of Tourism.

In just one year after hitting a record high of 10 million foreign visitors in 2016, the number of visitors increased by 2.9 million to nearly 13 million for 2017. 

Of this figure, the number of foreign visitors travelling by air jumped by 32.1% to 10.9 million, while tourists arriving by road surged by 19.5% to 1.8 million, however, visitors travelling by sea dropped by 9.1% to 258,800.

In terms of markets, visitors from Asia increased by 34.4% to more than 9.7 million, while tourist arrivals from the EU grew by 16.6% to 1,885,670, America (up 11.1% to 817,003), Australia (up 14.3% to 420,906), and Africa (up 25.6% to 35,881).

Vietnam attracts record tourist numbers in 2017 but still can't escape bad reputation

Robbery, petty crimes, traffic accidents and service quality continue to scar the country's image.

2017 has been another record breaking year for tourism as foreign visitors to Vietnam surged 29.1% over the previous year, reaching an all-time high of 12.9 million, according to the General Statistics Office.

The country consistently makes it into “world’s top 10 lists” by reputable travel sites and newspapers like The Guardian, CNN, Lonely Planet, TripAdvisor and Rough Guides.

But just as it is famous for pristine beaches, misty mountains, buzzing cities, mouth watering food and friendly people, the “rough side" of the country hasn’t escaped its global image either.

Visa issues aside, robbery, petty crimes, traffic accidents and service quality continue to put visitors off one year after Deputy Prime Minister Vuong Dinh Hue asked tourism agencies to solve them.

There have been some improvements but Vietnam still has a long way to go, said Nguyen Quoc Ky, CEO of travel company Vietravel.

Many hotlines set up to resolve tourism incidents don't operate outside working hours while that's the time when they're most likely to be needed, Ky said. He added that most hotline staff don't actually know how to respond to issues like food poisoning.  

Echoing Ky, head of the Vietnam National Administration of Tourism Nguyen Van Tuan said the issues have been frequent, and could not be fully eliminated.

In September, an officer from the US Consulate in Ho Chi Minh City was pinned down and robbed in a taxi, according to police reports.

Earlier this year, police in Ho Chi Minh City also detained a man for fatally stabbing an American tourist, allegedly over an argument about the poor quality of drugs the foreigner had bought from him.

Foreign tourists have also faced hassling in Vietnam. The UNESCO World Heritage Site Ha Long Bay has earned a reputation for being one of the country’s biggest tourist traps as vendors follow foreigners as soon as they leave buses, often refusing to give up until they finally sell something.

In Da Lat, a resort town in the Central Highlands, groups of gangsters have reportedly forced tourists to pay for unwanted products and services. The situation got so bad that Prime Minister Nguyen Xuan Phuc had to step in, asking local authorities to end this practice, which has threatened security in Da Lat and tainted its image as a favorite travel destination.

But in a country where on average 24 people die from traffic accidents per day, it is lack of road safety that taints Vietnam’s image the most, according to tourism companies.

Even though Vietnam is generally classed as safe overall due to "low" terror threat according to a report issued in January this year by The Telegraph,  Vietnam is listed among the more dangerous countries in terms of road deaths.

“It is very, very dangerous,” said Kasia Tomaszewska, a visitor from Poland. “Local people don’t have the culture of respecting pedestrians. You have to cross the street, knowing that nobody will stop.”

The governments of the UK, US, Canada, France, Switzerland and Australia all warn their citizens of potential dangers awaiting them in Vietnam.

“Compliance with local road regulations is poor….There are frequent road traffic accidents and fatal crashes,” according to a UK government website.

At a bar in Ta Hien, a backpacker street in Hanoi, Elena Dalaeva, 30, from Russia shrugged off the risks. “Nowhere in the world is quite safe. Most of foreign tourists don’t have a problem here. Respect laws, learn the basics and use common sense, you will be fine.”

Traffic in Vietnam seems to either puzzle, impress or annoy outsiders, and even locals sometimes. The seemingly chaotic streets have even inspired Enomoto Kaori, a 30-year-old Japanese woman and game designer who arrived in Vietnam in July 2015, to create a mobile game called Vietnamese Road that trains people how to cross the streets.

The game has become so popular that last October it received a US$40,000 grant in the form of tools and services from a Facebook start-up fund.

ABC News quoted Mark Bowyer, who edits the popular Southeast Asian travel website Rusty Compass, as saying that Vietnam was paradoxically "both a very safe and very unsafe travel environment" and tourists needed to be proactive about their safety.

Sometimes, it boils down to how visitors choose to see Vietnam’s tourism vices. They could be part of a wild adventure, or a reason to never return.

Official data published in August show that the latter is the majority as 80 percent of foreign visitors to Vietnam don’t actually return.

In order to resolve these issues, Tuan said the Vietnam National Administration of Tourism cannot simply act alone but has to coordinate with the transport sector, the police and local governments.

Ken Atkinson, chairman of Grant Thornton and vice chairman of the Vietnam Tourism Advisory Board, said he “personally believes the actual return rate for tourists is actually lower than the quoted 20%, as some reports record return tourists at less than 10%.”

The main reason for the low return rate is that Vietnam has yet to really establish itself as a destination for family holidays, as Thailand and Indonesia have managed to do. It is believed that the return rate for tourists in Thailand is closer to 50%, he told VnExpress International.

In order to establish itself as a family destination, he suggested that Vietnam should have a more friendly visa regime, more activities for family recreations and better infrastructure, as well as higher quality services and safer roads.

“Nevertheless, our tourism numbers continue to boom but we need to start to look at the quality of those tourists and their average spend in country,” he said.

After all, the country aims to welcome 17-20 million foreign visitors in 2020, and reach tourism revenue of US$35 billion by the year.