Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Thematic (Sector/Industry)

We believe the growth of Vietnam's tourism sector presents an attractive near- and long-term investment theme.In the near-term, Vietnam will continue to benefit from a boom in visits from international tourists, driven in part by Vietnam's "novelty" and accessibility to Asia's population centers but also by politics in Beijing, which have sharply reduced Chinese tourist visits to other popular destinations in the region. In the longer-term, rising incomes are driving growth in domestic tourism and visits abroad by Vietnamese travelers. This is particularly true for the ~20 mn residents of Vietnam's largest cities.Finally, Vietnam's tourism sector also offers optionality from the expansion of gaming in Vietnam. Depending on the steps taken by authorities in Vietnam (and actions taken or not taken by authorities elsewhere in the region), the gaming industry could over the next several years become a third driver of strong growth in Vietnamese tourism activity.In this note we first provide an overview of Vietnam as an increasingly popular destination for international tourists from the Asian region. Then we look at Vietnam's emerging tourists and their increasing propensity to travel domestically and visit neighboring countries. We also analyze Vietnam's potential as a regional gaming destination. Finally, we identify some ways to play expected strong growth and point out some potential risks investors must keep in mind.

We believe the growth of Vietnam's tourism sector presents an attractive near- and long-term investment theme.In the near-term, Vietnam will continue to benefit from a boom in visits from international tourists, driven in part by Vietnam's "novelty" and accessibility to Asia's population centers but also by politics in Beijing, which have sharply reduced Chinese tourist visits to other popular destinations in the region. In the longer-term, rising incomes are driving growth in domestic tourism and visits abroad by Vietnamese travelers. This is particularly true for the ~20 mn residents of Vietnam's largest cities.Finally, Vietnam's tourism sector also offers optionality from the expansion of gaming in Vietnam. Depending on the steps taken by authorities in Vietnam (and actions taken or not taken by authorities elsewhere in the region), the gaming industry could over the next several years become a third driver of strong growth in Vietnamese tourism activity.In this note we first provide an overview of Vietnam as an increasingly popular destination for international tourists from the Asian region. Then we look at Vietnam's emerging tourists and their increasing propensity to travel domestically and visit neighboring countries. We also analyze Vietnam's potential as a regional gaming destination. Finally, we identify some ways to play expected strong growth and point out some potential risks investors must keep in mind. 

Vietnam's Tourism Sector: Come for Boom In Int'l Visits, Stay for Domestic Growth (& Maybe Gaming)

Investment Advisors, JL Warren Capital

Junheng Li

Investment Advisors

JL Warren Capital

JL Warren Capital LLC is a leading independent equity research firm focused on Chinese companies and listed multinationals in China. We employ a bottom-up research approach that takes great care to avoid the acquisition of material non-public information. Through investigative due diligence including channel surveys and interviews, our research helps clients to pinpoint the dislocations in the market.

Equity Bottom-Up

On August 9, the Civil Aviation Authority released a new regulation on the internet flight ticket sales.  The regulation states to strictly prohibit the OTAs (online travel agencies) to bundle the sales of air tickets with optional services (such as insurance, VIP lounges, etc). OTAs need to list the ancillary services separately and as optional so that consumers will not be misled and choose the bundled sales unknowingly. The new regulation responds to rising Chinese consumers’ complaints on…

On August 9, the Civil Aviation Authority released a new regulation on the internet flight ticket sales.  The regulation states to strictly prohibit the OTAs (online travel agencies) to bundle the sales of air tickets with optional services (such as insurance, VIP lounges, etc). OTAs need to list the ancillary services separately and as optional so that consumers will not be misled and choose the bundled sales unknowingly. The new regulation responds to rising Chinese consumers’ complaints on…

China to Tighten the Regulations on Online Airline Ticket Sale

China

Tuniu Corporation is an online leisure travel company. The Company provides packaged tours, organized tours, self-guided tours and other travel related products and services.

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Tuniu Corp Spon Adr (TOUR US)

Vietnam's Tourism Sector: Come for Boom In Int'l Visits, Stay for Domestic Growth (& Maybe Gaming)

We believe the growth of Vietnam's tourism sector presents an attractive near- and long-term investment theme.In the near-term, Vietnam will...

Daniel Hellberg

China to Tighten the Regulations on Online Airline Ticket Sale

On August 9, the Civil Aviation Authority released a new regulation on the internet flight ticket sales. The regulation states to strictly...

JL Warren Capital

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52-week Range

Market Cap (USDm)

P/E

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