The country was ranked 63rd among 140 economies in the 2019 tourism competitiveness ranking, with a biennial report released by the World Economic Forum saying the industry was limited by low labor productivity and readiness in applying advanced information and communication technologies.

In 2017, Vietnam was ranked 67th in the world.

Under a newly approved tourism development action program for the 2021-2025 period, the Ministry of Culture, Sports and Tourism has said it would focus utilizing digital technologies in the tourism industry as part of transforming it into a spearhead economic sector and strive to improve its position to lower than 50th position in the next travel competitiveness rankings.

The tourism industry will develop a national database system, and digitalize its resources, including establishing a digital information system at tourist sites and service establishments.

The plan of action will also give priority to developing high-quality human resources and a sustainable tourism labor market while providing post-pandemic support to related businesses.

In 2019, before the onset of Covid-19, Vietnam had received a record 18 million foreign tourists.

Since the first outbreak, Vietnam’s tourism industry has experienced one of the most difficult periods in its history. Last year, the number of foreign arrivals was down nearly 79 percent to 3.8 million.

Industry revenues plunged nearly 56 percent to VND17.9 trillion as flights were canceled and people became reluctant to travel due to fears of contracting the novel coronavirus.

A recent report by the Vietnam Tourism Association said up to 90 percent of tourism companies are in dire straits. Most of them have had to let employees stay at home without pay.