Khanh Hoa is a province in the South Central Coast region, which islikened to the image of a miniature Vietnam with forests and mountains,possessing a plain having a coastal area with several beautiful beaches, islands andarchipelagos, not to mention a long history of culture creating favorable conditionsfor tourism development. Despite bestowed with many potentials and advantagesfor development, the development results of Khanh Hoa tourism are still modestcompared to expectations unstable increase in the number of international visitors,unbalanced structure in source of visitors, slow increase in revenue, low visitor’saverage expenditure, modest contribution of the tourism industry in the GRDP ofthe province... In the face of this situation, research was conducted to answer twoquestions (i) What key factors play a role in promoting or hindering thecompetitiveness of Khanh Hoa tourism industry? and (ii) What should be done toimprove the competitiveness of Khanh Hoa tourism cluster business?. Thereby, thestudy evaluates the current state of competitiveness of Khanh Hoa’s cluster tourismsector and recommends some appropriate solutions to improve the competitivenessof this industry cluster.