Vietnam’s tourism sector is poised for significant transformation following the National Assembly’s June 12, 2025, resolution to consolidate provincial administrative units. This restructuring, reducing the number of provinces from 63 to 34 (six centrally governed municipalities and 28 provinces), promises to streamline operations, foster regional connectivity, and unlock new opportunities for tourism businesses. The changes are expected to significantly impact tourism product development, service quality enhancement, and regional integration.
Streamlined Operations and Reduced Bureaucracy
The simplification of administrative boundaries is already yielding tangible benefits for tourism businesses. Nguyen Khoa Luan, Director of Anh Viet Hop on – Hop off Vietnam Co., Ltd., highlighted the reduced time and costs associated with obtaining permits for inter-provincial tourism operations. “Previously, running our double-decker bus tours from Da Nang to Hoi An required obtaining permits from multiple localities, each with its own regulations,” Luan explained. “Now, the process is significantly smoother.”
This streamlined approach extends beyond individual permits. The expectation is that a unified policy framework will eliminate legal obstacles hindering the development of innovative tourism models. This includes the expansion of city tours using double-decker buses, the development of night tourism experiences, and the wider implementation of smart tourism technologies.
Pham Anh Vu, Director of Viet Travel Media Joint Stock Company, corroborated this sentiment, emphasizing the complexities previously associated with organizing MICE tours (Meetings, Incentives, Conferences, and Exhibitions) combining cruises in Ha Long Bay and cross-provincial caravan tours. “The consolidation has simplified these processes, empowering businesses to confidently develop new products,” Vu stated.
Shifting Tourism Design Paradigms
The restructuring has spurred a notable shift in tour design philosophies. The traditional approach of designing tours based on administrative boundaries is giving way to a more thematic and spatially integrated model. This means tours are now being designed around specific experiences and travel zones rather than focusing solely on existing provincial lines. This flexibility allows businesses to implement agile planning, test new products more efficiently, and respond quickly to market trends—a crucial factor in the dynamic tourism landscape.
Tran Phuong Linh, Marketing and IT Director at BenThanh Tourist, underscored the improved quality control resulting from the consolidation. “Previously, varying standards across different localities hindered the management of quality across inter-regional tours,” Linh explained. “The consolidation enables standardized management, ensuring a smoother tourist experience and enhancing product competitiveness.”
New Tourism Products and Experiences
Tourism businesses are actively translating this positive outlook into concrete strategies. Du Lich Viet (Vietnam Tourism) has launched a marketing campaign themed “Exploring New Lands,” showcasing attractive interconnected tour routes to both domestic and international tourists. The company is also reviewing its product portfolio, adding new destinations, extending stay durations, and enhancing overall experiences.
Vu illustrated this evolution with specific examples: “Instead of individual tours, we can now offer packages like the ‘Con Son – Kiep Bac – Ha Long Bay – Cat Ba’ tour, combining spiritual, historical, and upscale island tourism. Or the ‘Da Lat – Mui Ne – Ta Dung’ tour, forming a golden triangle of ‘highland – sea – mountain lake,’ providing diverse experiences. Existing tours will also be revamped by expanding destinations and enhancing experiential value.”
Anh Viet’s experience highlights the challenges and opportunities presented by the consolidation. The company had previously collaborated with the Ba Ria-Vung Tau Tourism Department (now under Ho Chi Minh City) to explore the feasibility of a double-decker bus tour in Vung Tau, but the project stalled due to regulatory hurdles. The Road Traffic Law mandated the use of electric buses for city routes, but suitable domestically-produced electric double-decker buses were unavailable, and imported vehicles lacked the necessary permits.
“This is a technological and legal challenge that businesses cannot solve alone,” Luan acknowledged. “We need clear guidelines to facilitate the localization of electric double-decker buses in more localities.” Following the consolidation, Anh Viet intends to relaunch the Vung Tau city tour and expand its Hop on – Hop off model to Da Lat and Binh Thuan, areas with infrastructure and landscapes conducive to open-top bus tourism.
The Need for Holistic Development Strategy
While the administrative consolidation provides a necessary foundation, businesses emphasize the critical need for a comprehensive development strategy to ensure that these newly formed regions become truly attractive destinations. This requires avoiding a fragmented approach where different areas maintain disparate approaches or adhere to outdated “new province – old province” mentalities.
Linh stressed the importance of a unified vision, encompassing planning and resource allocation. “We need to merge mindsets, planning, and resources,” she advised. “Each locality has its own strengths; skillful integration will create a richer regional tourism ecosystem.”
Linh pointed out shortcomings in the quality of many inter-provincial routes, citing long travel times unsuitable for short-duration or personalized tours. To achieve effective regional connectivity after the consolidation, she advocated for synchronized infrastructure development, particularly in transportation and service ecosystems. This integrated approach is crucial for maximizing the benefits of the provincial consolidation and realizing the full potential of Vietnam’s tourism sector. The success of this initiative hinges on a coordinated effort to overcome existing challenges and create a more unified, efficient, and appealing tourism landscape across the country.
