FAB TALKS
Vietnam – the great travel & F&B opportunity
Photo: ©Tran Phu on Unsplash
Addressing the exciting emergence of Vietnam’s travel market, IPP Travel Retail CEO and Imex Pan Pacific VP Business Development Phillip Nguyen along with Dufry (now Avolta) Regional Managing Director Asia Pacific David Mackay shared their insights about the country’s travel & tourism infrastructure and prospects.
Nyugen said that an impressive 19 members of his team had travelled to Bangkok to spread their enthusiasm about the Vietnam opportunity to FAB delegates. [As reported, IPP Travel Retail will host The Trinity Forum 2024 on 5-6 November in Ho Chi Minh City -Ed]
“To be able to stand here and talk about F&B is exciting,” Nyugen said. “I met Martin [Moodie] three years ago through LinkedIn and we talked throughout COVID and we went on to develop such a strong friendship.”
He explained that Vietnam is still growing in terms of its food culture, which is a national passion.
“As you know, the late great Anthony Bourdain used to speak about Vietnam’s street food culture; the pho, the ban mi and so on,” Nyugen commented. “And his message is still so important to those food shops where they have even encapsulated his honour in a blessing glass. Here in Thailand, that passion for food is everywhere. And that’s something that Vietnam is really growing into.”
IPP Travel Retail CEO and Imex Pan Pacific VP Business Development Phillip Nguyen outlined the scale of the travel and dining opportunity
The table in downtown Hanoi where Anthony Bourdain and President Barack Obama slurped noodles together – it is now encased in glass for prosperity (left)
Nguyen went on to say that business had not bounced back quickly post-pandemic, but encouraging signals were beginning to emerge.
“Even as we look at why Vietnam is so attractive, we see a certain downturn. And that’s a reality that many of us are facing globally,” he said. “We thought we would see the same numbers and data post-COVID as before. But we are now looking at those numbers again and asking ourselves, how are we progressing with the consumers that we are targeting?
“In positive news, we are seeing the Vietnamese as one of the top purchasers across all of Southeast Asia and Asia Pacific and we see the Indian market coming through next.”
Nyugen added that an improved infrastructure in Vietnam was a positive sign for the industry and would rapidly change the landscape of travel retail.
“The new Metro lines in Ho Chi Min City will be a game changer for travel and F&B,” he explained. “Meanwhile we have been waiting a long time for Long Thanh Airport in the south, and that will also eventually put the university campuses of Ho Chi Min in a direct path to the airport.”
He pointed out that Vietnam has a 2045 “masterplan” and explained how this will allow more people to travel freely.
“Our goal by around 2040 is to increase our total highways by 10,000km,” he said. “We still have no gas station rest stops but all that will change. I’m sure you will have heard about exciting Vietnamese company Vinfast [a multinational electric car company] entering the NASDAQ? Things are changing. Our government is getting ready proactively to attack 2024. COVID was the right time to reset the economy.”
Nguyen was keen to share his enthusiasm for Vietnam and to demonstrate why it is a tourist hot spot to watch
David Mackay reflected on the spirit of the Vietnamese people he had discovered since moving to live there.
“Vietnam is my home and it is an absolutely fabulous and outstanding country,” he said.
Mackay was keen to point out that Vietnam is a very young and dynamic country. “The average age is 33,” he commented. “It is a leading food & beverage exporter in rice, black pepper and coffee; 86% of the population own a motorbike or scooter; and there are eight UNESCO World Heritage sites.”
He said he was very proud to be represented at the five largest airports “with 91 restaurants, bars and cafés across Vietnam, 23 brands and concepts including national brands such as Burger King and Popeyes, and our partner IPP is the domestic master franchise for those two brands and the Domino’s brands”.
Mackay commented on how sustainability is at the core of the company: “It’s a key focus because of our scale and we know that even a small adjustment can make a huge difference.”
He said the company is “deeply connected to and committed to the wellbeing of communities in Vietnam”, proving once again that altruism is an important part of any modern business. Avolta has helped thousands of Vietnamese families through its ‘Helping Hands’ programme, which has supported local communities since 2018.
Proud to promote Vietnam: Dufry (now Avolta) Regional Managing Director Asia Pacific David Mackay
FAB eZine
January 2024
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