2. Ha Long Cat Ba Alliance 5 th May 2015

3. Contents 1.Overview of Vietnam tourism 2.Tourism in Ha Long Bay 3.Current challenges and opportunities for tourism in Ha Long Bay 4.About Grant Thornton 5.Our role in the Project

4. Vietnam tourism Number of arrivals to Vietnam from 2010 – Q1 2015

5. Vietnam tourism (continued) Origin of arrivals in 2014 and Q1 2015

6. Vietnam tourism (continued) Comparison with other Asian countries

7. Vietnam tourism (continued) Visitors to Cat Ba Number of visitors to Cat Ba (2013 vs 2014)

8. Vietnam tourism (continued) Visitors to Cat Ba Number of visitors to Quang Ninh (2013 – Q1 2015) In which, number of tourists to Ha Long Bay 2013: 1.2 million of both international and domestic tourists 2014: 2.8 million of both international and domestic tourists By 2020, the city is looking forward to having 5.9 million visitors and might reach 7.5 million visitors if the development plan is achieved

9. Vietnam tourism (continued) Average spending From the result of survey on tourism trends conducted by VNAT with support from an EU-funded tourism development project in July 2014: International travellers: average spend of USD102.3 per day Domestic travellers: average spend of USD65 per day Ha Long City: International travellers: the highest spend at USD125.1 per day Domestic travellers: the highest spend at USD75 per day

10. Vietnam tourism (continued) Average length of stay in Vietnam and nights spent on boats to Halong Bay Tourists to Vietnam: average length of staying time for visitor are 11.3 days (based on result of tourists expenditure survey by GSO), but by: o airway are 11.7 days, train are 7.9 days, car are 8.1 days, ship are 8.3 days and by others means are 6.6 days. o this also affirms that visitors of continents far from Vietnam often travel by airway and have the longer length of staying time Nights on boats to Halong Bay: normal cruise to Halong is around 2 – 3 days, therefore tourists will spend 1 – 2 nights on boats.

11. Vietnam tourism (continued) Current challenges and opportunities – Ha Long Current challenges: the city is facing a decrease in number of boats to Ha Long Bay in high season in 2014 – 2015 compared with 2013 – 2014 due to, Economic and political reasons e.g. East Sea Issue and Russian Rouble Weak infrastructure causing concerns over safety and security e.g. inadequate mooring facilities; Lack of tourism promotion and destination marketing; General issues facing the Tourism industry in Vietnam related to Government Policy.

12. Vietnam tourism (continued) Current challenges and opportunities – Ha Long Current opportunities Recognised as a Natural Heritage by UNESCO Quang Ninh (or Ha Long Bay) has a good development potential for travel by sea or cruise, which is expected to recover and experience strong growth in the coming years Benefit from changes being requested in Government policies to benefit travel and tourism e.g. Visa facilitation. Implement strict environmental and sustainable practices to preserve the natural beauty and heritage of Ha Long Cat Ba

13. Grant Thornton A truly global organisation The scale you need to meet your changing needs With more than 40,000 people in over 130 countries, we are a truly global organisation. However big your organisation or however international the challenges you face, we have the resources to match. We have member firms in over 130 countries worldwide. Between them, they audit more than 2,500 listed companies and work with some of the world’s largest organisations. We are ranked one of the top six firms in all major markets and we're well established in all major business centres and emerging markets.

14. Regional presence and understanding Asia Pacific

15. Kenneth Atkinson Executive Chairman Nguyen Chi Trung Managing Partner “Grant Thornton Vietnam is driven by a simple ambition: to be the first choice for dynamic business.”

16. Grant Thornton Vietnam’s Key Differentiators

17. Our Role in the Project Member of the leadership committee Carrying out Survey AMONGST Boat Owners covering o Current state of water treatment facilities o Staff training o Current state of water conditions o Current awareness of water preservation o View on state management policies and effectiveness o Recommendations to improve visitor impressions o Views on certification o Views on policies for infrastructure support

18. Q&A Questions and Answers

19. Contacts Kenneth Atkinson Executive Chairman T+84 8 3910 9108 F+84 8 3914 3748 E: Ken.Atkinson@vn.gt.com Hanoi 18th Floor Hoa Binh International Office Building 106 Hoang Quoc Viet Street Cau Giay District, Hanoi T +84 4 3850 1686 F +84 4 3850 1688 Ho Chi Minh City 28th Floor Saigon Trade Center 37 Ton Duc Thang Street District 1 T +84 8 3910 9100 F +84 8 3914 3748 Grant Thornton (Vietnam) Ltd offices: