The information that the leaders of the China Tourism Group came to work in Vietnam, "joined hands" with the Inter-Pacific Import-Export Company Limited (IPPG) to sign a memorandum of understanding on opening 3 duty-free stores in Ho Chi Minh City, Nha Trang (Khanh Hoa province), Mong Cai (Quang Ninh province) is attracting the attention of domestic business circles.
Reporter of Nguoi Lao Dong Newspaper had an interview with Mr. Johnathan Hanh Nguyen, Chairman of IPPG Board of Directors, about this "handshake" as well as the opportunity to welcome millions of international visitors to shop, promoting shopping tourism in Vietnam.
Reporter: Vietnam tourism information can welcome 25 million more visitors to shop every year, including many Chinese visitors, can you share?
Mr. Johnathan Hanh Nguyen : From March 27 to 30, a high-level delegation of China Tourism Group (CTG) and China Duty Free Group (CDF, a member of CTG) came to work in Vietnam.
China Tourism Group is a state-owned enterprise directly managed by the Chinese government . China Duty Free Group is the largest duty-free business group in China with 2023 revenue of 9.3 billion USD and net profit of 939.4 million USD.
"King of luxury goods" Johnathan Hanh Nguyen hopes to welcome millions more international visitors to Vietnam for tourism and shopping through investing in opening duty-free stores.
After surveying and working with the People's Committees of Ho Chi Minh City, Nha Trang (Khanh Hoa province), Mong Cai (Quang Ninh province), CDF and Imex Pan Pacific Import Export Company Limited (IPPG) signed a memorandum of understanding on opening 3 duty-free stores in the 3 above localities.
- What is the specific plan, sir?
+ In 2024, the duty-free shop in Bac Luan at Mong Cai border gate (Quang Ninh) will open and Mong Cai is expected to welcome an additional 10 million Chinese visitors.
In Nha Trang (Khanh Hoa), the downtown duty-free store will be invested in in 2024 and open in early 2025, ready to welcome 12 million international visitors, of which 50% will be Chinese visitors, after the duty-free stores come into operation.
In Ho Chi Minh City, an inner-city duty-free store is also expected to open soon in the center of District 1 for the convenience of tourists shopping.
International visitors shopping in Ho Chi Minh City. Photo: Lam Giang
To make the above plans concretely come true, it requires the support of the state in terms of mechanisms and premises. For example, in Ho Chi Minh City, we are working with relevant agencies and hope to be supported in removing difficulties in mechanisms, in order to have premises to implement the investment project of duty-free stores.
The cooperation between the two groups will bring a breakthrough in the growth of tourism trade in Vietnam. It is expected that 3a duty-free shopping centers opened in 3 leading destinations will attract about 25 million Chinese visitors to Vietnam each year. These are all high-end, high-spending visitors, contributing to the adjustment of the structure, helping Vietnam welcome luxury visitors from this market.
- What potential do these inner-city duty-free stores have that they can welcome millions of tourists to shop every year, sir?
+ Downtown Duty Free is a very popular business model in big cities. In Seoul, South Korea, this industry brings in $16 billion in revenue per year. Meanwhile, the Premium outlet and amusement park model attracts not only international but also domestic visitors, stimulating demand for consumers to buy high-end, seasonal branded items at prices reduced by 50% - 80%.
In the US, Hong Kong and Japan, the appeal of Premium outlets and theme parks like Disney Land has helped these tourism markets grow by hundreds of millions of visitors per year.
With the strength of 138 brands and more than 1,200 stores nationwide, IPPG Group is ready to invest in a system of professional-class inner-city duty-free stores to attract and serve tourists. This is also a place to promote local products globally, high-value products that help increase tourism revenue, increase commercial value, and resonate with other services such as hotels, restaurants, commerce, and transportation.
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