Future Economic Consistency?

Throughout our stay in Hoi An, and especially when we took a day trip into Da Nang, I was continuously shocked at the amount of construction for resorts. After our reflection period, it definitely made me realize that Vietnam’s exploding economy is extremely dependent on tourism. As Vo said, all of the retailers depend on tourists to make their money as it’s more or less seasonal based with peak season in the summer and winter breaks and slow season otherwise. I found it a little shocking because I feel like a lot of these resorts will cause the competition amongst the resorts to rise, which in turn doesn’t fill up all the hotel rooms. To further explain, say there are 5 resorts that consistently are completely booked, especially in peak tourism seasons, then what happens in 10 years when there are 20 resorts? All of these resorts cost millions of dollars and if they can’t be continuously occupied, then they lose money, thus limiting profits and spending habits that help out the average retailer at the end of the block. When looking out the window on our way to Da Nang, it became apparent that throughout the country, more so in more popular tourist areas, that the rich will only get richer and everyone else struggles to remain at the same social status. Along the fences of these blocked off grids for resorts to be built, were hundreds of homes housing citizens. What happens to them when the resorts are finished and restrict their access to the beaches they used for fishing, a main source of food and income? That became more apparent when driving through the city to the big pagoda, where we drove along this massive beach for tourists, but then at the corner of the cove, was the area that was allowed for fishing, which was clearly over crowded. Although Vietnam is economically growing at a rapid pace because of tourism, I’m intrigued to see if that will eventually be bad for them because it seems as if it’s a business sector that both domestic and foreign investors are diving into increasing the amount of competition with every investor.

Another thing that really struck me was the aggressiveness and persistence of the “promoters” or doors people at restaurants, and the foot vendors. I have worked in retail for more than 10 years and I know the first rule of thumb is to make your customers experience memorable and enjoyable so they come back. However in Hoi An, the amount of people that literally stop me in my tracks to try and get me to buy something with somewhat of a begging tone is out of control. From my perspective, imagine if I stood on the sidewalks of my town stopping people in their tracks forcing them into the store to buy something. To me, that doesn’t sound like I’m enhancing the quality of their experience so that customer is inclined to come back. This sort of lead to me to my next point, which is that most of their economy seemed to be retail based, and as someone who knows retail very well, success doesn’t last forever. When I looked around at the products sold in Hoi An, they were a dime a dozen meaning I could find the same exact product two doors down. So, similar to the resort topic, the level of competition amongst the retailers limits their ability for success. Also, none of the products they sell are commodities or something a person needs or expects to have. For example, I don’t need a piece of artwork to get by, but if I want one, I’ll buy it and that’s it, I don’t need a new piece of artwork every year. The same idea goes with the tailored suits, as say I buy 3 suits. Those 3 suits will last me a very long time. My point is that once enough tourists come here, the level of competition of lack of differences amongst resorts and products will cause the economy to come to a holt. Once someone buys a painting once, they keep it for a while, whereas stores like hardware stores can serve a large market population via construction, interior/exterior designing, and agriculture, on a consistent basis.

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