Enterprise

The Tourism Industry Still Struggles in Q2 Despite a Rise in International Arrivals

Despite a 21% increase in international arrivals to Vietnam in the first half of the year, particularly from Europe, due to visa-waiver policies and the April 30th holiday in Ho Chi Minh City, the second-quarter financial performance of listed tourism businesses remained lackluster.

Administrator

13 September, 2025

According to data from VietstockFinance, 18 enterprises in the industry recorded a revenue of 5.98 trillion VND, a decrease of 27% compared to the same period; net profit was just over 264 billion VND, which is less than half. The main impact came from VPL due to the loss of real estate revenue.

Even the strong growth in international visitors and the festival season in Ho Chi Minh City did not create a significant boost. Out of the 18 enterprises, 10 reported a decrease in profit, with many names turning from profit to loss, such as VNG, DSP, DAH, and VTG; other enterprises such as VTR, DSN, and VTD also saw a reduction in profit.

Bright spots were only seen in a few units that took advantage of their unique strengths, such as NVT, RIC, TCT, and DSD.

“Big player” in accommodation falters

Vinpearl (HOSE: VPL) remained the industry leader, but its revenue fell by 41% to 2.9 trillion VND due to the absence of real estate income. However, the core hotel and entertainment segment increased by 31% to more than 2.7 trillion VND, with the gross profit margin improving from 11% to 24%. Thanks to a surge in interest income of 477 billion VND, net profit stood at 166 billion VND, a decrease of 50%.

Meanwhile, Thanh Cong Tourism (HOSE: VNG) incurred a loss of 48 billion VND due to a 19% decline in revenue to 176 billion VND, interest expenses of 64 billion VND, and the absence of abnormal investment. The report showed that many branches in Da Nang, Vinh Long, Dong Thap, and Lam Dong temporarily ceased operations.

At the annual general meeting of shareholders held in April, the leadership of VNG acknowledged that despite strong growth in Ho Chi Minh City and Hanoi, the company has not fully capitalized on its potential. The trend of frugal spending and escalating input costs since 2024, along with the concentration of international visitor growth in Hanoi, Ha Long, and Ho Chi Minh City – where VNG has no presence – has caused the main destinations like Nha Trang to see very modest growth.

VNG‘s business declined, and it only escaped consecutive losses thanks to financial income.

Provincial hotels still struggling

Dong A Hotel Group (HOSE: DAH), which operates a hotel in Thai Nguyen, turned from profit to a loss of nearly 1 billion VND, as revenue decreased due to the exclusion of a consolidated subsidiary.

PetroVietnam East Tourism (UPCoM: PDC), which operates the Phuong Dong Hotel in Nghe An, saw its profit drop by 56% to 931 million VND.

The revenue of Huong Giang Tourism (UPCoM: HGT), which operates the Huong Giang Resort & Spa in Hue, fell by 34% to 10.2 billion VND, but its loss narrowed to 260 million VND thanks to dividends from a joint venture.

Despite a slight increase in revenue to 8.1 billion VND, Ba Ria-Vung Tau Tourism (UPCoM: VTG) incurred a net loss of 3.6 billion VND due to the absence of compensation of more than 22 billion VND compared to the previous year. VTG is still struggling after ceasing operations at Bai Sau in Vung Tau City, with revenue insufficient to cover financial expenses.

A few rare bright spots in the hotel group (Unit: billion VND)

Source: Author’s compilation

A few rare bright spots

Ninh Van Bay Tourism Real Estate (HOSE: NVT) benefited from the peak season in Khanh Hoa and Lam Dong, with revenue increasing by 16% to 116 billion VND; profit reached 5.2 billion VND, reversing the loss in the same period last year. According to the company, the strong recovery in tourism demand boosted both revenue and profit at the resorts managed by its subsidiaries.

Sai Gon Hotel (HNX: SGH) also demonstrated a recovery thanks to the 50th anniversary of the liberation of the South at the end of April. Revenue reached 12.4 billion VND, a 20% increase, and the highest level since the COVID-19 pandemic. Revenue from accommodations – the main pillar – rose by 18% to 7.3 billion VND, while cost of goods sold remained almost unchanged, helping profit surge by 37% to 2.7 billion VND.

Sai Gon Hotel’s revenue recovers positively after the pandemic

Amusement group sees mixed performance

The 30/04 holiday effect in Ho Chi Minh City was not enough to offset the trend of tightening spending and new competition. Dam Sen Water Park (HOSE: DSN) reported revenue of 68 billion VND, a 21% decrease, reaching the lowest level since 2017 if we exclude the two COVID-19 years. DSN stated that tourism and entertainment spending declined, while many new entertainment spots shared the market, directly impacting visitor numbers.

Phu Tho Tourism Service (UPCoM: DSP), the operator of the Vam Sat Ecological Tourist Area in Can Gio, incurred a loss of 9.2 billion VND due to the absence of land rent incentives, despite a negligible decrease in revenue.

On the other hand, DHC Double Falls (UPCoM: DSD) which operates the Nui Than Tai Tourist Park in Da Nang, reported a revenue of 76 billion VND, an increase of 11%. The gross profit margin improved from 10.8% to 15.2%, helping profit surge by 37% to 32 billion VND.

Tay Ninh Mount Ba Cable Car (HOSE: TCT) also saw a positive performance with revenue increasing by 122% to 8.8 billion VND thanks to a significant rise in cable car and slide riders; net profit rose by 128% to 5.5 billion VND. Consequently, the profit of its parent company, Tay Ninh Tourism-Trade (HNX: TTT) also increased by 105% to nearly 6 billion VND.

Positive performance in the amusement group based in Da Nang and Tay Ninh (Unit: billion VND)

Source: Author’s compilation

Travel enterprise profits narrow

Vietravel Tourism (UPCoM: VTR) maintained revenue of 2 trillion VND, but the gross profit margin decreased from 5.4% to 5.1%, and financial expenses increased by nearly 50% due to exchange rate fluctuations, causing net profit to fall to just 1.3 billion VND, a decrease of 78%.

Vietourist Holdings (UPCoM: VTD) fared no better, with revenue falling by 32% to 45 billion VND and profit plunging by 77% to 264 million VND.

In contrast, Hanoi Tourism Service (UPCoM: TSJ) recorded a profit of 59 billion VND, an increase of 21%, thanks to dividends from a joint venture, despite a significant drop in revenue, especially from the tourism operation segment, which halved.

Narrowing profits in the travel group (Unit: billion VND)

Source: Author’s compilation

Bright spot from the operator of reward games

Hoang Gia International (UPCoM: RIC) operates the Hoang Gia Hotel in Quang Ninh and offers reward games for foreigners. The company reported revenue of 47 billion VND, a 31% increase, and a profit of 10 billion VND, ending a streak of losses since 2019.

This is seen as an early sign that the rise in international visitors, especially from Europe after the visa waiver policy, is spreading to models with higher spending levels.

Accounts receivable from customers increase

The recovery signs in the tourism industry are also reflected in the short-term accounts receivable from customers in travel enterprises, which have risen sharply since the COVID-19 pandemic.

VTR had accounts receivable of nearly 397 billion VND at the end of the second quarter, a significant increase compared to the hundred billion VND range in 2020-2021. This is similar to VTD.

Accounts receivable of TSJ stood at over 12 billion VND, higher than during the pandemic years but not as high as the peak in 2018-2019. Meanwhile, accounts receivable of BTV reached a peak of 211 billion VND.

Short-term accounts receivable from customers of some travel enterprises increased significantly compared to the pandemic period (Unit: billion VND)

Source: Author’s compilation

Positive expectations for the second half

According to the General Statistics Office, in the first six months of 2025, Vietnam welcomed nearly 10.7 million international visitors, an increase of nearly 21%, and achieved nearly 49% of the annual plan. Visitors from Europe increased by 27%, along with China, South Korea, the US, and Japan, forming the foundation for the industry to enter the final stretch.

Major domestic markets were also bustling. Ho Chi Minh City, in seven months, welcomed 4.6 million international visitors, an increase of nearly 48%, and 21.7 million domestic visitors, an increase of over 8%; tourism revenue exceeded 140 trillion VND, a nearly 30% increase, with the highlight being the 50th anniversary of the liberation of the South at the end of April.

Da Nang recorded summer hotel occupancy rates of 75-80%, with many beachfront hotels fully booked on weekends. In the first seven months, the city welcomed 10.7 million staying visitors, an increase of 18%; including 4.2 million international visitors, an increase of 21%; and the industry’s revenue reached 33.8 trillion VND, an increase of 23%.

To achieve the target of 22-23 million international visitors, the tourism industry needs an additional 11.3 million visitors in the next six months. The e-visa policy for 90 days, applicable to all countries, and the visa waiver for 24 countries, especially in Europe, are expected to boost long-stay, high-spending visitors.

Tu Kinh

– 12:00 09/09/2025