Nowadays, outbound travel is no longer a privilege of a few, like elites or business travelers. More and more people can manage to take one or even many trips abroad every year, but when the COVID-19 epidemic spread all over the globe. Nevertheless, the travel interruption in the last two years cannot suppress the robust demand for post-pandemic outbound tourism in Vietnam.
According to Vietnam Outbound Travel 2022, the latest report of Vietnam-based market intelligence company The Outbox Company, the growth of the country’s new middle class can boost Vietnam outbound tourism in the coming times.
The impact of new middle class
The report states that the total number of Vietnamese outbound travelers is forecasted to grow much faster, mainly due to the growth of the country’s new middle class. The middle and affluent class (MAC) are those whose monthly income is at least VND 15 million (around USD 750), a threshold at which consumption is observed to take off.
The MAC population in Vietnam is estimated to triple between 2012 and 2030, with an annual growth rate of 12.9%. It’s higher than other countries in the Southeast Asia region including Myanmar, Indonesia and Thailand.
According to a report on Vietnamese consumers from McKinsey & Company, the number of Vietnamese consumers entering the middle class with new consumption power is growing and well positioned in Asia’s consumption map over the next decade. The two highest tiers of the consuming class (middle and affluent class spending USD 30 or more per day) are growing the fastest and may account for 20 percent of Vietnam’s population by 2030.
It can be seen that they will tend to spend more not only for their basic demands but leisure activities like traveling as well. As the quality of life is higher, along with a bigger desire to explore the world, and the quick development of social media and technology, Vietnamese travelers can be urged to go abroad more.
A promising market due to well educated travelers with high incomes
It’s great news that the demand of outbound tourism in Vietnam is increasing after the pandemic. And it’s much better that Vietnamese outbound travelers have a good standard of education, as reported by The Outbox Company. Knowledge and education allow them to better understand and appreciate destinations adding to the experiential component of Vietnamese outbound travel. As a result, they can be aware of supporting the locality as well as contributing to sustainability and environmental protection while traveling to any destination.
In addition to getting a good education, nearly 60 percent of the population under 35 years old in Vietnam earn more than previous generations. The fact that they will spend more and respect the places they visit makes up a promising market for many destinations.
More data and insight about the middle class impact in particular and the Vietnam outbound travel market in general can be found in the Vietnam Outbound Travel 2022 report of The Outbox Company.