Tourism and hospitality boom puts spotlight on skills shortage

New opportunities for growth

Vietnam’s tourism industry is rebounding strongly post-COVID. It welcomed over 17.5 million international tourist arrivals in 2024, up 39.5 per cent compared to 2023 and reaching 97.6 per cent of the pre-pandemic level. In the first half of this year, international arrivals reached 10.7 million (a 20.7 per cent year-on-year increase) while domestic tourism is also thriving. 

Notably, according to the World Tourism Barometer published by the UN Tourism, Vietnam had the sixth-highest growth in international tourist arrivals globally and highest in Asia-Pacific in the first quarter of 2025, ahead of Japan. 

In addition to the impressive growth, Vietnam is riding a wave of new trends in tourism and hospitality. Driven by Gen Z and millennials, the events and entertainment sector has boomed in the last two years, driving spin-off revenue for hotels, restaurants, and local businesses.

In 2024 alone, over 50 major music events were held nationwide, drawing crowds of up to 40,000. High-profile concerts such as Anh Trai Vuot Ngan Chong Gai, Anh Trai Say Hi, and Ha Anh Tuan’s performances generated billions of VND in revenue.

The evolving event landscape, featuring hybrid and virtual formats, has also created new career opportunities in event management, production, marketing, and technical support.

Meanwhile, multinational hospitality companies are bringing into Vietnam new technologies that have been embraced in other developed countries, prompting new ways of working. Hospitality operators are slowly embracing technologies such as robotics, AI, and predictive analytics to enhance service and decision-making.

Workforce struggling to keep up

Despite the new avenues for growth, the tourism and hospitality sector is still grappling with a severe shortage of skilled labour.

Dr Daisy Kanagasapapathy, Interim Associate Program Manager of Tourism and Hospitality Management at RMIT Vietnam, remarked, “The number of service providers in Vietnam is disproportionately low compared to the burgeoning tourism activity. This disparity can lead to a lapse in service quality and dissatisfaction among tourists.”

Dr Kanagasapapathy explained the lacklustre interest in joining the tourism industry started during the COVID-19 pandemic, when many experienced professionals left the industry and did not return. While the industry has bloomed lately, many people have chosen to exit the hospitality industry permanently and focus on jobs that helped them through the pandemic. This phenomenon has led to the current dearth of manpower and expertise.

On the same note, Vietnam’s tourism education system is considered too theoretical and fragmented. Dr Justin Matthew Pang, Interim Senior Program Manager of Tourism and Hospitality Management at RMIT Vietnam, advocates for a review and overhaul of the curriculum in hospitality educational institutions.

“A lot of the training offered in Vietnam is still rather ‘old-school’. We need to embed new management disciplines and industry-relevant syllabi such as Revenue Management, Asset Management, Luxury Management, Wellness Management, and even Theme Park/Attractions Management, into our curriculum,” he said.

“These management skills still need to be complemented by vocational skills, which are the foundation of hospitality operations.”

Dr Pang also states that there is a need to have greater collaboration between industry and hospitality educational institutions.

“Educational institutions need better alignment with industry. We want their advice based on their operational needs analysis. We also encourage companies to better ‘cherish’ new joiners as they will become the next generation of hospitality leaders – we need to make them feel welcomed and appreciated, and see a long-term career prospect in this line, starting with a good salary package and a balanced work-life.”

More cooperation for workforce development

With the evolving landscape of tourism in both Vietnam and abroad, the sector needs to be prompt in its own transformation to seize the opportunities and manage the challenges ahead. “Vietnam cannot rely on specific ministries to solve these issues. There needs to be a concerted approach to galvanising all stakeholders to be more tourism-centric,” stated Dr Kanagasapapathy.

The ongoing restructuring of various government agencies in Vietnam is an example of how the Vietnamese government is pushing for greater efficiencies. The RMIT experts hope this momentum will continue among key agencies such as the Ministry of Education and Training and the Ministry of Culture, Sports and Tourism, in order to foster a more concerted, integrated, and responsive approach to workforce development and create more economies of scale.

“As Vietnam positions itself as a global destination for both tourism and culture, the country must ensure its workforce is equipped to meet the demands of a rapidly evolving landscape,” Dr Pang said.

“With the right investments in emerging sectors in the tourism trade, coupled with a reformed education curriculum, and strong industry validation and collaboration, Vietnam can turn its current challenges into long-term competitive advantages.”

Story: Ngoc Hoang