Vietnam pushes duty-free models to boost spending by international visitors

Outlet retailing, widely used globally as a strategic distribution channel, remains underdeveloped, with only fragmented and small-scale operations.

Tran Huu Linh, head of Agency for Domestic Market Surveillance and Development under the ministry, stressed that developing outlet and duty-free models is not only about expanding distribution channels but also about transitioning toward a modern retail ecosystem, with spillover effects on tourism and services.

Tourism spending is another untapped area.

International visitors to Vietnam currently spend about US$1,050-1,150 per trip, significantly lower than in Thailand and Singapore, indicating substantial room to increase value through shopping – an essential pillar of modern tourism strategies, he noted.

Globally, outlet retail has proven its scale and impact.

The U.S. generates around $65 billion annually from hundreds of outlet centers, while Europe recorded 21.4 billion EUR ($25.2 million) in outlet revenue in 2023, surpassing pre-pandemic levels.

Across Asia, countries such as Japan, China and Thailand have successfully integrated outlet “villages” into tourism offerings, combining shopping with entertainment, dining and cultural experiences.

Under the draft project, Vietnam aims to establish at least five outlet centers linked to tourism by 2030 in major hubs such as Hanoi, Ho Chi Minh City, Da Nang, Quang Ninh and An Giang. By 2045, the country plans to develop premium outlet “villages” across the nation.

Two main outlet formats are proposed. The first is large-scale premium outlet villages designed as integrated complexes combining shopping, entertainment and cultural experiences, targeting mid- to high-end customers and serving as tourism destinations. The second includes smaller urban or suburban outlet centers with more flexible scale, focusing on mid-range and mass-market brands suited to local infrastructure conditions.

For duty-free retail, the goal is to cover all international airports and major border gates, while expanding into downtown areas in key tourism cities. Notably, the model would allow services for both domestic customers and eligible duty-free shoppers, broadening consumption space.