International tourism and economic growth in Vietnam

Tourism is increasingly recognized as a key economic driver in Vietnam, fostering growth and international integration. Based on the Tourism-Led Growth hypothesis, this study uses wavelet analysis (XWT, WTC, PWC) on 1995–2024 data of GDP per capita, international arrivals, and service share to examine their dynamic linkages. Results show that tourism positively relates to GDP but remains unstable, strongest in the medium term (4–6 years). When controlling for services, the linkage weakens, confirming the service sector as the main transmission channel. Tourism can thus drive sustainable growth only when supported by service development, infrastructure, and legal–policy frameworks such as Resolution 08-NQ/TW, Resolution 127/NQ-CP on e-visa expansion, digital transformation, and green tourism.