From oil to orchids: how Vietnam made tourism its economic engine, what Iran must learn
TEHRAN- As a tourist-journalist who has visited many countries, my long journey through Vietnam in November 2024—from the dynamic streets of Ho Chi Minh City to the lantern-lit alleys of Hoi An, the imperial citadels of Hue, the bustling energy of Hanoi, and the emerald waters of Ha Long Bay—left me not just in awe of its beauty, but profoundly impressed by its strategic genius. Vietnam has done what few developing nations have achieved: it has transformed tourism from a peripheral activity into a central economic pillar, a veritable engine of national prosperity. For Iran, a nation rich in heritage but poor in tourism revenue, the lessons are urgent and actionable.
Vietnam’s economic transformation: the numbers that matter
Vietnam’s commitment to tourism is not rhetorical; it is quantified and ambitious. In 2025, the country welcomed nearly 21.2 million international visitors, a 20% surge that set a new record. Tourism receipts reached approximately $85 billion, contributing an estimated 6-8% of GDP annually during the 2021-2025 period. But this is merely the foundation. Under the recently signed Politburo Resolution No. 26-NQ/TW, Vietnam has set its sights on tourism contributing 10-12% of GDP by 2030, with total receipts targeted at $80-90 billion. By 2045, the sector is expected to account for 14-15% of GDP, with 70 million international visitors and a place among the world’s 30 most competitive tourism economies.
More tellingly, tourism’s spillover effects are immense. In the first half of 2026, despite global geopolitical tensions and inflationary pressures, Vietnam’s GDP grew 8.18% year-on-year, with services expanding by 8.09%. Retail sales of consumer goods and services reached VND 3,889.5 trillion, growing 12.9%, driven in large part by tourism recovery. The industry already supports approximately 2.3 million direct jobs and 3.5 million indirect jobs, with targets to reach 1.5 million accommodation rooms and a workforce capable of sustaining this growth.
Strategy pillars of Vietnam’s success
What I observed on the ground confirmed what the policy documents prescribe. Vietnam’s success rests on four interconnected pillars.
First, governance and political will. The Politburo resolution explicitly calls for tourism to generate “stronger spillover effects across other sectors, helping drive economic growth and innovation while promoting sustainable development.” This is not a ministerial afterthought; it is a national priority, signed by the Party General Secretary and State President. Implementation responsibilities are assigned across the political system—from the National Assembly to provincial Party organizations—ensuring coherence and accountability.
Second, infrastructure as a growth catalyst. Vietnam plans to develop three major tourism growth poles in Hanoi, Ho Chi Minh City, and Da Nang, alongside 10 key tourism centres and 20 national tourism areas. Multimodal transport infrastructure—aviation, railways, inland waterways, seaports, and marinas—is being prioritized. During my cruise in Ha Long Bay, I saw firsthand how investment in modern vessels and passenger terminals enhances the visitor experience and extends stays, directly increasing per-capita spending.
Third, a shift from volume to value. The resolution marks a decisive move away from a tourism model focused primarily on visitor numbers towards one centred on quality, efficiency, higher added value, and distinctive experiences. Visa policies are being reformed with wider exemptions for key markets. Emerging models—the night-time economy, riverfront and coastal economies, and integrated tourism, cultural, sports, and entertainment complexes—are actively supported. Shopping tourism is being encouraged through research into value-added tax refund mechanisms. The goal is not just more tourists, but higher-spending, longer-staying visitors.
Fourth, digital and green transformation. Vietnam is establishing a national smart tourism ecosystem, including a national tourism database and digital platform. Big data and AI will be used in promotion and destination reputation management. Simultaneously, green tourism is being promoted through wastewater treatment, reduced plastic use, and circular-economy models. This dual focus on technology and sustainability positions Vietnam as a forward-looking, competitive destination.
A roadmap for Iran: what must change
For Iran, a country with 30 UNESCO World Heritage sites—more than Vietnam—and a civilization spanning millennia, the gap between potential and performance is stark. Iran's tourism sector currently contributes 5% of GDP, a fraction of what Vietnam achieves. Yet the opportunity is immense, and the lessons are clear.
First, elevate tourism to a national strategic priority. Iran lacks an equivalent to Vietnam’s Politburo resolution—a binding, high-level policy document that places tourism at the centre of economic diversification. Iran’s Supreme Leader and government must issue a similar directive, assigning clear responsibilities across ministries, provinces, and the private sector. Tourism must be treated not as a cultural sideline but as a spearhead economic sector, on par with oil and gas.
Second, invest massively in infrastructure. Iran needs an estimated 3,000 new four- and five-star hotels and a modernized aircraft fleet to compete globally. Vietnam’s target of 1.5 million accommodation rooms by 2030 should serve as a benchmark. Iran must prioritize multimodal transport—upgrading airports, expanding rail networks, and developing cruise terminals along the Caspian Sea and the Persian Gulf. Public-private partnerships, which Vietnam actively encourages for destination management and major projects, must be institutionalized in Iran.
Third, reform visa and entry policies. Iran’s visa regime remains cumbersome for many potential visitors. Vietnam is expanding visa exemptions and introducing more flexible policies for key markets. Iran should immediately implement visa-free access for citizens of major tourism-source countries, and adopt an electronic visa system to streamline entry. This alone could significantly boost arrivals.
Fourth, shift from quantity to quality. Iran must stop counting heads and start measuring value. The focus should be on attracting high-spending tourists—cultural heritage enthusiasts, wellness travellers, MICE (Meetings, Incentives, Conferences, Exhibitions) delegates, and luxury adventurers. Developing the night-time economy, shopping tourism (with VAT refunds), and integrated resort complexes would mirror Vietnam’s strategy and dramatically increase per-tourist expenditure.
Fifth, embrace digital and green transformation. Iran lags in digital tourism infrastructure. A national tourism database, AI-driven promotion, and digital booking platforms are essential. Simultaneously, Iran must invest in sustainable tourism—waste management, green transport, and heritage conservation—to protect its assets and appeal to the growing global market for responsible travel.
Sixth, develop human capital. Vietnam targets a tourism workforce of 2.3 million direct employees. Iran currently has only about 50,000 trained tourism professionals, whereas it needs at least 200,000 fluent in key languages. Investing in hospitality education and vocational training is not optional; it is foundational.
Conclusion: A window of opportunity
The first half of 2026 showed Vietnam’s resilience and diversified growth, with tourism, manufacturing, and domestic consumption driving an 8.18% GDP expansion. Iran, facing its own economic pressures, cannot afford to ignore this model. By adopting Vietnam's strategic focus—political will, infrastructure investment, visa reform, quality targeting, digital innovation, and human capital development—Iran could realistically generate $20 billion in annual tourism revenue and create 150,000 new jobs by 2030. More importantly, it would reduce its dependence on oil, diversify its economy, and project a more nuanced, welcoming image to the world.
My journey through Vietnam was a revelation—not just of natural beauty, but of national strategy. Iran has the heritage, the climate, and the geography. What it lacks is the resolve. The lesson from Hanoi to Ha Long Bay is unmistakable: tourism is not just about leisure; it is about livelihoods, growth, and national prosperity. Iran would do well to learn it.











Photos By Mahnaz Abdi (November 2024)
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