Night-time economy helps stimulate domestic consumption, tourism development

Ha Noi municipal authorities are seeking feedback for a pilot scheme to allow recreational establishments in Hoan Kiem area to stay open past midnight.

In July 2020, Prime Minister Nguyen Xuan Phuc greenlighted the night-time economy development plan in Viet Nam.

The plan aims to exploit the potential of the night-time economy in Viet Nam to promote overall economic growth, improving incomes for residents while limiting risks and negative impacts on political security, social order and safety.

According to the plan, the Government supports economic development at night in line with the international development trend in order to make the most of the time, create more opportunities for economic growth, diversify economic activities, and at the same time better serve the material and spiritual life of people, especially foreign tourists.

The Government encourages the development of the night-time economy to stimulate domestic consumption and tourism development, through cultural, entertainment, catering, shopping and tourism services, taking place from 6 pm till 6 am the following day.

Under the plan, night-time activities would expand opening hours in some key tourism areas, including Ha Noi, Quang Ninh, Hai Phong, Ho Chi Minh City, Da Nang, Hoi An, Thua Thien-Hue, Can Tho, Da Lat and Phu Quoc.

Accordingly, policies to encourage enterprises and business households to participate in the night-time economy would be developed, including improving their capacity to access official financial sources, especially banking credit.

Tourism promotion for night-time activities would be enhanced together with building night-time tourism products based on the cultural factors of each locality.

Night-time economy-global trend to boost tourism 

Night-time economy development is a global trend that helps boost the tourism sector by offering travelers more choice.

According to an article themed “The growing importance of the night-time economy” released by BBC, the night-time economy is a growing part of the UK economy. Nationally, it is the UK's fifth-biggest industry, accounting for at least 8% of the UK's employment and annual revenues of £66 billion, according to the Night Time Industries Association.

Meanwhile, the night-time economy in New York generates US$35.1billion (£27 billion) in economic activity, and nearly US$700 million in local tax revenue.

Based on an article titled “Night economy will bolster China's openness and vitality” of China Global Television Network, the dynamism and the strength of the night-time economy in China are also reflected in recent figures. 

Meituan-Dianping, China's leading e-commerce platform for services, in its latest report, highlighted that the nationwide consumer spending on late-night dining had swelled by 47% in 2018, which is 2% higher than the expenditure during the day time. 

Also, the number of ticket bookings for visiting theme parks at night doubled this year while the page views of similar items swelled by almost 40%, as per the platform. 

Cities such as Shanghai and Guangzhou reported an increase in their revenue as a result of booming night-time activities. 

The night economy contributes 62% of the daily retail sales in Shanghai, while the nighttime consumption in Guangzhou accounts for 55% of the revenue generated by its services sector.

By Thuy Dung