Vietnamese Korean Economy Also Shaken by Entry Restrictions on Korean Tourists

Sharp Decline Expected This Year from Last Year's 4.3 Million

"Reduced Staff but Closed Last Month"

Surge in Korean Town Real Estate Listings

[Asia Economy Hanoi Jo Ara, Guest Reporter] As overseas departures from Korea were blocked due to the spread of the novel coronavirus infection (COVID-19), the Korean economy in Vietnam also began to suffer collateral damage. With Vietnam's restrictions on Korean arrivals causing a sharp drop in visitors, travel agencies and restaurants targeting them are being adversely affected.

Midingsongda, the Korean Town in Hanoi, appears deserted as the air routes between Korea and Vietnam have been blocked. According to statistics from the Vietnam Tourism Administration, the number of Korean visitors reached 4.3 million last year, but since Vietnam implemented entry restrictions on Koreans last month, the number of visitors has sharply decreased. According to the Korean Ministry of Foreign Affairs, as of the 9th, 430 Koreans are reported to be quarantined immediately after arrival in Vietnam.

A local Korean resident operating a gift shop said, "We reduced staff starting in January, and have been completely closed since last month." Although employee salaries were cut to about 30%, they could no longer endure and decided to close temporarily. This resident added that there is a high possibility the current situation will continue until July and that they are also considering permanent closure. Travel industry workers are no exception, with some companies entering unpaid leave for three months.

As the Korean community suffers from the shock of COVID-19, real estate listings are flooding the local market. A Korean resident running a real estate agency in Hanoi hinted that many commercial properties have been listed, especially in Korean Town, since the spread of COVID-19. Monthly rent for Korean commercial spaces is around USD 4,000 to 5,000 for 132㎡ (approximately 40 pyeong), but due to uncertain future prospects, listings are pouring in. On the other hand, local delivery companies are enjoying a windfall. A Korean resident operating a local supermarket reported that delivery volume has increased by more than 40% compared to usual due to some panic buying demand.