Session 1:Business opportunities for service industries in Vietnam

-New challenges in Tourism and Logistics-Shinichiro Shimizu

1

International Tourist Arrival

3,345,000

28,691,000

31,192,000

1,351,000

12,922,000

15,497,791

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

International Tourist Arrivals 1995-2018

JapanVietnam

SOURCE: The World Bank, GSO, JNTO

2

118,254

81,924

44,162 37,476 40,225 38,996

32,844 27,454 25,502 24,159

20,716 15,779 13,951 13,224

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

自動車

Aito

mo

bile

化学製品

Ch

emical p

rod

ucts

訪日外国人旅行消費額

Tou

rism

訪日外国人旅行消費額

Tou

rism(2

01

6)

半導体等電子部品

Electron

ic parts

自動車部品

Aito

mo

bile p

arts

鉄鋼

Steel

原動機

Mo

tors

半導体等製造装置

Semico

nd

ucto

r eq

uip

men

t

科学光学機器

Scientific an

d o

ptical

instru

men

ts

電気回路等

Electric circuit

電気計測機器

Electric measu

ring

instru

men

ts

非鉄金属

No

n ferro

us m

etal

船舶

Ship

s

Travel consumption by int’l visitors to Japan in 2017

4,416.2 billion yen

Travel consumption by int’l visitors to Japan in 2016

3,747.6 billion yen

Unit:100 million yen

Inbound Goals and Economic Effects in Japan

SOURCE: Japan Tourism Agency

– Japanese government has set a goal of 20 million foreign visitors to Japan in 2020,

travel consumption of 8 trillion yen

– The level of travel consumption by international visitors to Japan in 2017 was 4,4

trillion yen, which exceeded the export value of electronic parts.

798,119826,674

34,794 34,221 41,862 41,048 55,15684,469

389,100

427,793392,912

483,951522,554

634,773688,519

772,878

862,872

1,215,774

552,350

712,752

778,675 777,083

1,001,529

1,101,947

1,252,963

1,348,820

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

2011

648,612

481,506 185,395358,691392,999 442,089

2008 20132009 2010

579,617

1,107,017

2012

604,050

2014 2015

677,477740,592

974,355

2016 20182017

124,266

233,763

308,898

563,684

806,746

1,103,780

Japan→Vietnam

Viernam→Japan

Actual Tourists

Total Seats

SOURCE:JNTO, JTB Research Institute, Vietnamese Tourism Board, DDS

Japan = Vietnam Total Demand Long-Term Trends

3

– Total demand between Japan and Vietnam has been growing steadily since 2009,

exceeding 1 million in 2017

– Demand for visit to Japan in 2018 was 9.5 times, + 348,052 in 2011.

Vietnamese Visa Relaxation Status

JUL,2013 Multiple Visa（15days・3years）

SEP,2014Multiple Visa

Requirement relaxation（30days, 5years）

NOV,2014Designated travel agency Package Tour participants

simplified application procedures

FEB,2016Multiple Visa

Requirement Relaxation（90days・10years）

4

Tourism Action Plan for 2018-2020 between Vietnam and Japan

– Target– 1.Enhance the tourist exchange to 1.5 million by 2020

– Enhancement of tourism promotion– 2.Investigate and analyze the demand each other and

develop new attractive destinations toward the expansion of

repeaters

– 3.Share information about common best practices in tourism

promotion and tourism policy

– 4.Intensify the tourism promotion through JNTO in Vietnam

and VNAT in Japan

– 5.Assist each other in organizing events, tourism promotion

activities and cuisine festival.

– 6.Facilitate networking opportunities in the framework of the

bilateral meetings and the international tourism fairs

– 7.Provide advice and support for mutual customers between

both countries’ associations of travel agents.

SOURCE: Japan Tourism Agency

5

Tourism Action Plan for 2018-2020 between Vietnam and Japan

– Improvement of tourism environment– 8. Make efforts to improve the lack of linguistic guides and to

improve their quality

– 9. Expand and improve multilingual displays

– 10. Vietnam improve the quality of infrastructure and tourism

services, Japan improve the convenience for travelers, such

as improving free Wi-Fi

– Development of human resources– 11. Work towards training tourism talents in cooperation with

the ASEAN-Japan Center and other organizations

– Others– 12. Consider and promote the facilitation of visa procedures

– 13. Japan promote outbound travel from young people, Viet

Nam promote the acceptance system for educational travel

– 14. Hold a tourism cooperation committee meeting every two

years, report the progress of this action plan and review

SOURCE: Japan Tourism Agency

6

Inbound Tourism Ranking in TPP11

– Here is a quiz for you to challenge !

– Where is the country with the most inbound travelers among the TPP 11 members?

86,918,000 81,786,000

75,868,000 60,740,000

58,253,000 38,298,000 37,651,000 37,601,000 37,452,000

35,381,000 29,460,000

28,691,000 27,885,000 27,194,000

25,948,000 24,390,000

20,798,000 18,400,000 18,200,000 17,924,000 17,255,000

16,109,000 15,790,000 15,785,000 15,593,000 15,543,000

14,230,000 13,906,000 13,336,000 12,948,000 12,922,000 12,808,000

11,349,000 11,133,000 10,781,000 10,740,000 10,285,000 10,100,000

8,883,000 8,815,000

0 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000

FranceSpain

United StatesChina

ItalyMexico

United KingdomTurkey

GermanyThailand

AustriaJapan

Hong Kong SAR, ChinaGreece

MalaysiaRussian Federation

CanadaPoland

PortugalNetherlands

Macao SAR, ChinaSaudi Arabia

United Arab EmiratesHungary

CroatiaIndia

UkraineSingapore

Korea, Rep.Indonesia

VietnamCzech Republic

MoroccoSwitzerland

DenmarkTaiwan

South AfricaIreland

BulgariaAustralia

Comparison of Inbound Tourism by Country for 2107

7

Inbound Tourism Ranking in CPTPP

SOURCE: The World Bank

8

JAL and Vietjet Partnership

– JL and VJ started code-share flight from OCT.2018

– Alliance of full service career and low cost career is a new challenge

【Applicable Routes Operated by Vietjet】・Domestic Flights

- Ho Chi Minh=Hanoi

- Ho Chi Minh=Da Nang

- Hanoi=Da Nang

・International Flights

- Kansai=Hanoi

Code-share to JL operated flights is expected to

start in the summer of 2019

9

JAL CARGO

10

Customer Needs for Airfreight

-Features-

・Quickness = Time value ⇒ Fresh food, New products, Medical things

・Safety = low accident rate ⇒ precision machinery, valuables

・Punctuality = Stable planning ⇒ Assembly parts (semiconductor etc.)

-Passive use motive-

・Recovering claims and delivery delay

・Delivering repair parts as soon as possible

・Loosing value in long-term transport

-Aggressive use motive-

・Keeping the initial market of new products

・Delivering fresh ones. (High value)

・Reducing inventory (reduce storage costs, promote fund rotation)

11

From EUROPE

From ASIA, OCEANIA

From JAPAN

From USA

From

ASIA ,CHINA

Airfreight Commodity Map

Airfreight between Vietnam and Japan by Our Network

Japan → Vietnam

Material for Garment (Textile, Footwear sole, etc)

Core Parts for Electrical things(Lens, Semicon, etc)

Perishable Cargo( Fish, Fruits, Veritable, etc)

E-commerce cargo(Aribaba, Amazon, Rakuten, etc)

Live Carp for Pet(Nishiki Koi)

→It will be expanded consuming market in Vietnam.

Expected to increase demand of Japanese fresh food,

and E-commerce cargo for Vietnam people

Vietnam → Japan

Electrical things (Camera, Printer, Phone, etc)

Auto Parts (wire harness, precision parts, etc)

Brand Garments(UNIQLO, etc)

Vietnam → USA, EUR via Japan

Brand Garments(Nike, Adidas, UM, GAP, etc)

Furniture

Perishable Cargo(Mango, Rambutan, etc)

→ Expected that High-tech industry will be increased,

also fresh fruits demand will be increased due to TPP11.

SGN

HAN

DAD

12

Issues for expanding cargo market

It is expected Airfreight demand will be increased in Vietnam from now on.

Realization of high quality airfreight service (Quickness, Safety, Punctuality)

must be required supports from airport administration and government.

Issues：・Space of airport cargo warehouse for current and future demands.

・Road traffic infrastructure around airport and between Industrial cities.

・Simplification customs clearance and administrative procedure.

SOURCE: Seaburycargo data base

metric ton

258,045 276,266337,963 375,351

237,108286,973

345,998 324,332

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2015 2016 2017 2018

20,852 20,06727,165 29,519

14,810 15,986

23,07224,830

0

10,000

20,000

30,000

40,000

50,000

60,000

2015 2016 2017 2018

Import

Export

Airfreight weight result of from to Vietnam Wright result between Vietnam and Japan

13

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