THE allure of Vietnam’s ancient underbelly has for some time proved a powerful attraction for incentive groups. But with its rapidly improving infrastructure, a growing number of travel managers are gravitating towards this Asian jewel.

Despite the recent setback caused by the bird flu virus, growth has been strong. Accor Asia Pacific, which lost 10,000 room nights as a result of bird flu, told BTN Asia-Pacific that year-to-date growth in Ho Chi Minh City had been 10 per cent over last year and seven per cent in Hanoi.

Accor Asia-Pacific director of operations, Mr Patrick Basset, said: “You can only imagine what it would have been without that setback.”

The chain operates seven properties including Sofitel Plaza Saigon and Novotel Garden Plaza Saigon in Ho Chi Minh City, and Sofitel Metropole Hanoi and Sofitel Plaza Hanoi in the capital, Hanoi.

Mr Basset said regional corporate business was the main driver this year. “Corporate business has been strong with a lot of small meetings being held by government and corporate delegations working on special projects.

“Vietnam is opening up and is a stronger investment than in the past. There is still a long way to go, but it is moving in the right direction and has a very good future with many big commercial and infrastructure projects under way,” he said.

Five-star hotel rates range from US$60 to US$140 for superior room accommodation with discounts available to corporate travel planners through volume-based contracts.

International brand room supply is on the rise too. Ho Chi Minh City boasts more accommodation choices than Hanoi, the newest being the Sheraton Saigon Hotel and Towers, which comprises 1,800 m2 of combined meeting and pre-function space.

In Hanoi, the 299-room Sheraton Hanoi opened in February. Its meeting facilities include 465 m2 of pre-function room space linked to a 570 m2 grand ballroom divisible into three sections.

Sheraton Hanoi director of sales, Ms Diane Curtis, said the country’s corporate travel industry had huge growth potential.

“Vietnam has a fresh innocence about it. People are discovering the destination for the first time,” she said.

The Hilton Hanoi Opera, situated next to the city’s famous Opera House, is another popular business travel property with a ballroom catering to more than 400 people. Nearby in Halong Bay, a 200-room Novotel is expected to open in early 2006, with the group also investigating options in Danang in central Vietnam.

Air access is contributing to the growth with Air France running daily flights into Ho Chi Minh City and Hanoi from April.

Moreover, Vietnam Airlines is equipping itself with new aircraft for new routes and a forecast of five million passengers a year.

The airline bought four Boeing 777-200 ER aircraft last year and leased a further two this year along with four Airbus 321s. New routes include seven flights a week to Australia. Others include Paris, Fukuoka, Busan, Singapore, Kuala Lumpur and Siem Reap. Flights from Ho Chi Minh City to Frankfurt and Russia are now available.

Destination management companies see a bright future ahead after the recent blip.

Destination Asia (Vietnam) general manager, Mr Paul Levrier, said: “People are now seeing the destination for what it really is – they are not put off by media scare tactics like what happened with the bird flu.

“There is more focus on Vietnam as a regional location for corporate meetings from the likes of Singapore, Hong Kong and Bangkok.”

Getting a room, however, is not always easy, particularly during peak season.

“Catering for small groups is generally not a problem, but bringing in incentives is a little limited. Big groups are starting to come in, and a lot of hotels are blocking off large conferences – that did not happen before, because we did not have the business.” Mr Levrier said.

The confidence the trade has in Vietnam is echoed by the managing director of corporate teambuilding specialist Dalat-based Phat Tire Ventures, Mr Brian Vierra. Mr Vierra said: “Business has really taken off for us. I cannot speak for other operators, but the general feeling is we have moved out the first phase and are now starting to get pretty serious.”