Nha Trang City in Khanh Hoa province, in Vietnamese people’s view, is a friendly and peaceful city by the sea, with a mild and open climate.

Nha Trang has experienced brilliant stages of development since 1986 when Vietnam began doi moi (renovation). The city’s leaders, together with enterprises, have been developing tourism as the key business field. Nha Trang has been trying every possible method to attract foreign travelers and encourage all economic sectors to invest in tourism, thus creating a healthy competitive market.

Since then, NhaTrang has been following the model of growing towards modernity – market economy, opening, tourism-based development under the spirit of differentiation and high level.

Nha Trang authorities, using Vietnamese businesses as the fundamental and economic pillars, have been focusing on building a growth pole to make a breakthrough in its development path.

The growth model, plus strong determination, have helped Nha Trang make a strong rise in the race for development, becoming a large tourism center of international stature, and an economic-scientific-technological and educational center of Khanh Hoa and the coastal central area.

Khanh Hoa’s GRDP reached VND60.158 trillion in 2023, an increase of 10.35 percent over 2022, with the economic structure of agriculture-forestry-seafood accounting for 11 percent of GRDP, industrial production and construction accounting for 32.23 percent, and service sector accounting for 47.56 percent

The income per capita of Khanh Hoa province in 2023 was VND86.44 million, while productivity was VND164.55 million per laborer.

Over many years, Nha Trang has been serving as the ‘locomotive’ of the provincial train of development. It is the only unit at district level that can contribute high amounts to the provincial and the country’s budget.

Under Khanh Hoa development planning in 2021-2030 approved by the Prime Minister in March 2023, the province would have three areas serving as driving forces for development, namely Van Phong Bay, Cam Ranh Bay and   City.

On March 31, 2024, Deputy Prime Minister Tran Hong Ha approved a plan on adjusting the overall development planning of Nha Trang City by 2040, which says that Nha Trang will promote the brand of a beach city of the nation and the world.

Nha Trang is planned to become a nucleus city, a national and international beach tourism urban area which plays an important role in the country’s national defence and marine environmental protection.

The locality is designed to become an administrative, political, economic, healthcare, cultural, educational and technological center of the province and the country.

Of the three areas serving as driving forces for development, Nha Trang has great advantages to become the center of the areas.

First, Nha Trang is well located in Khanh Hoa province, in the middle of the two other development points of Van Phong and Cam Ranh. Its transport network is favorable, with a coastline (Nha Trang Port), a developed road system (Highway 1A, inner-city road networks and routes connecting with other localities in the same province), Thong Nhat Railway, and Cam Ranh International Airports designed to serve 4 million passengers a year.

Nha Trang not only can connect with other areas of Khanh Hoa, but also with other cities and provinces such as Da Lat, Tuy Hoa and Phan Rang.

Nha Trang has beautiful beaches and a network of wonderful islands, which attract travelers. It also has many universities, academies, research institutes, junior colleges, vocational schools, and technological centers.

Covid-19 caused Nha Trang’s local economy to suffer from a minus growth rate in 2020-2021. Many problems were revealed after the pandemic, including an imbalanced economic structure, which relied on certain markets and groups of products, posing high risks and an over-concentration on certain growth poles.

However, the city has realized the problems and has gathered its strength to escape them, and find ways to recover the economy.

Analysts say that for a long time, Nha Trang development was based on traditional tourism, focused on exploiting natural advantages. 

Khanh Hoa authorities also gathered strength to develop Nha Trang, resulting in disconnection with other localities in the province.

Though Nha Trang has original natural and cultural resources, an abundant and skillful workforce, the resources still cannot be optimized to suit modern conditions and needs.

Analysts have warned that if Nha Trang continues overexploitation as it has done for many years, it may fall into the middle-income trap.

Lan Anh