Continued Vietnam Tourism Growth Challenges Thailand

"The growth has strengthened Vietnam’s position as a major tourism destination in Southeast Asia and increased competition with Thailand, particularly in the important Chinese visitor market."

In all fairness to Thailand Vietnam has a geographic adavantage. Sa Pa situated in the Lào Cai province of Northwestern Vietnam shares a direct northern border with the Yunnan province of China. You can easily reach Sa Pa in under an hour by taking a local bus, minivan, or taxi from the border checkpoint. While I was in Sa Pa there were many young well to-do young Chinese on a fun weekend trip.

Thailand are driving tourist away to Vietnam Vietnam just have to sit tight and rejoice on Thailand’s governments lack of empathy for tourism. This proposal to trade with Russia is just one example.

2 hours ago, newbee2022 said:

Me too. I don't need filthy riffraff here.

With riffraff you can't get quality.

1 hour ago, FolkGuitar said:

With respect, do you consider yourself 'quality?'
Why? Because you have more money? Because you wear nicer clothes?

Sorry. Not a valid Rubrik!

43 minutes ago, MarkBR said:

I assume he is a snob

Obviously! Anyone who judges others (snobbish behavior right there!) needs to remember that others will judge him, and perhaps not by the standards he prefers!

Good for Vietnam, I'm genuinely happy for them.

I hope the country has continued prosperity in the future.

2 hours ago, Keeenok Powell said:

Some people might say with an attitude problem like yours,you are riff raff!

Not me of course but I’m only saying.

And your problem is ?

Thailand has its heads stuck in the past in most Avenues of life. They don't live in the Real World the rest of us live in and think the Thai Bubble is indestructible . They still teach their Kids at Government Schools that ''Thailand is the Greatest Country on Earth''.. The Country is run by the so called ''Elite'' together with more than 3,000 Military Generals who Rape and Exploit the People's Economy for every Baht they can take.

Don't expect any change during your Lifetime...unless there isa Full Bloodied Revolution !

4 hours ago, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

4 hours ago, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

4 hours ago, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

A very succinct summary that I agree with- Thailand seems to have an attitude that volume of tourists is everything- and we all see the consequences every day of cheap alcohol etc and cheap tourists who think and act as if they were millionaires simply because Thailand often is cheaper than their home

Vietnam will no doubt try to learn from Thailand's errors and will eventually be more popular as a result

4 hours ago, Chongalulu said:

As I’ve previously said, expect more headlines " Vietnam surpasses Thailand in X,Y". Be that industry, growth, foreign investment, tourism etc. Much of this lies with the political climate and failure to adapt / change, especially in the fundamentals like education and preserving the interests of the old order. Vietnam is more dynamic and forward looking while Thailand appears to be squandering its position as a more developed country. I don’t expect any fundamental dawning to occur as those in power preserve their own interests. Sad really..

From memory, I think VN has surpassed TH in ri ce production.

They do it properly.

Not random throwing handfuls of rice seed and fertiliser around in some lazy,half hearted scattering.

I've been to VN a few times and took my Thai wife once to Hanoi.

Small hotel but excellent with the manager/owner giving us an introductory talk on what to do,where to go and even which taxis were safe,honest and reliable.

Great service!

And our room was similar to a 4/5 star hotel/resort in Macao.

Tour operators took almost any major currency including Thai baht....at least for us.

Thailand has drifted into becoming the Benidorm of the East. Long haul tourists don't find this attractive.

Their international image especially in the West is hardly encouraging, deals with Russia, wars with Cambodia support for the Myanmar Junta and an attitude to visas that is perceived as niggardly at best....... its no wonder that people interested in S.E. Asia are less interested in Thailand and looking elsewhere for a "genuine" Asian experience.

5 hours ago, Peterphuket said:

The fact is, the Thais simply need more time to work out where things are going wrong, and that’s because it never occurs to them that the fault lies with themselves.

It may well be some time before they realise it.

Time's up. Even procrastination has given up on Thailand.

24 minutes ago, Feingeist said:

Time's up. Even procrastination has given up on Thailand.

What are they procrastinating on?

Their primary official tourism theme and slogan for 2026 is: ‘Unforgettable Experience: Healing is the New Luxury.’ And to be fair, the slogan actually isn’t half bad. But once you’ve seen Thailand’s utterly ridiculous hospital prices, you realise that ‘healing’ genuinely is a luxury over there. Frankly, it feels like a complete rip‑off.

3 minutes ago, kwilco said:

What are they procrastinating on?

Was meant to be a joke. Did not work out it seems. Must be my English. Sorry,

18 minutes ago, Feingeist said:

Their primary official tourism theme and slogan for 2026 is: ‘Unforgettable Experience: Healing is the New Luxury.’ And to be fair, the slogan actually isn’t half bad. But once you’ve seen Thailand’s utterly ridiculous hospital prices, you realise that ‘healing’ genuinely is a luxury over there. Frankly, it feels like a complete rip‑off.

All thet does is promote Thailand as a hub of quackery - I suppose that will attract some.

5 hours ago, Guderian said:

With Vietnam's tourism industry in the ascendant and at least one Thai politician now calling for ending all visa-free entry, you'd think they might appreciate long-stay retired expats and the money they bring into the economy a bit more. No sign of them even starting to recognise the contribution may of us make to the lives, finances and well-being of many of the Thai people we know, though. It's not hard; create a special long-stay visa for ordinary retired people (not the fickle HiSo set) that doesn't involve 90-day reports and all the other reporting and renewal nonsense, and allow a retired foreigner to own, say, a rai of land for residential purposes, perhaps with the proviso that after death it must be left to a Thai citizen. Then go and sell that to prospective retirees overseas rather than always focusing on the two-week millionaires.

Good post and I totally agree. Unfortunately, the current Thai government is the worst of any I can remember. So far they've accomplished very little except to push Thailand backwards. No bold thinking, no new ideas, no new nothing.

5 hours ago, Sir Dude said:

It's inevitable that Vietnam will surpass Thailand in most areas and it can be boiled down to the general attitude of the people... Thais are nowhere near as focused and determined to succeed like the Viets are.

Vietnam doesn't do the flip-flopping that Thailand does, it sets policies and sticks to them.

3 hours ago, Legal Lifeline said:

A very succinct summary that I agree with- Thailand seems to have an attitude that volume of tourists is everything- and we all see the consequences every day of cheap alcohol etc and cheap tourists who think and act as if they were millionaires simply because Thailand often is cheaper than their home

Vietnam will no doubt try to learn from Thailand's errors and will eventually be more popular as a result

Vietnam won't stand for nonsense.

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9 hours ago, Pesche said:

On the contrary, (Thailand) Immigration red-tape & regulations are ridiculous and make it more difficult (i.e. for retirees) to enjoy a long term stay.

Ahh yes, Vietnam has that easy to acquire Retirement visa /s

I don't go to Vietnam because it's a PITA to get there with visas. Maybe that's what Thailand's aim is ? make it more of a PITA and more people will arrive ah la Vietnam ? I'm currently in Thailand on the last of the 60 day visa exempt visas, (at Day 8) and next years 8 months abroad trip looks to be Malaysia (90 days visa exempt) and Cambodia, unless I opt for elsewhere completely.

6 hours ago, Guderian said:

No sign of them even starting to recognise the contribution may of us make to the lives, finances and well-being of many of the Thai people we know, though. It's not hard; create a special long-stay visa for ordinary retired people

Why ? Most countries don't want "poor people". The current "retirement" visa will surely be phased out eventually, or have much higher cost hurdles, like Malaysia's MM2H was a few years back. You can get the Thailand "Elite" visa now so perhaps they'll phase out the retirement visa and if you cant afford "Elite" (or whatever it's called now) they'll just say, oh well, so sad, go home ? The current "retirement" visa is an annual visa, not a residency permit (unlike The Philippines, which at least has residency) The only SE Asian country currently that seems ok with poor immigrants is Cambodia (and they do have there new CM2H). Vietnam doesn't and their system is ascendant, so why not emulate that ? Even The Philippines has made it harder.

Maybe many tourists are bored of Thailand ? they've been 3 - 5 times and are looking for something else, everyone I know has been to Thailand multiple times, only about 1/3 of them have been to Vietnam.

Xenophobia is rampant, be it in the UK, EU, US, Aus or Thailand.

9 hours ago, Pesche said:

"...and ongoing debate about prioritising quality over quantity in tourism."

Shouldn't it rather be "prioritising quantity over quality in tourism" following the Visa-Free incentive?!

Opposite to Vietnam, Thailand does not aim at all for long stay tourism!

On the contrary, Immigration red-tape & regulations are ridiculous and make it more difficult (i.e. for retirees) to enjoy a long term stay.

Still the old mentality:

"Welcome to Thailand, come to party and shopping (spend all your money) and go home!"

Isn't that the aim of the tourist industry in ALL countries?

Spend your money, enjoy yourself and then leave.

9 hours ago, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

Backpackers bring a lot of money for Thailand 🤣🤣🤣 Stay off the weed my friend.

14 hours ago, Georgealbert said:

Vietnam’s tourism sector is expanding rapidly, with the country welcoming more than 21 million foreign visitors in 2025, around 20% higher than the previous year. The growth has strengthened Vietnam’s position as a major tourism destination in Southeast Asia and increased competition with Thailand, particularly in the important Chinese visitor market.

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According to a report cited by Fortune, Vietnam attracted 5.3 million Chinese tourists in 2025, surpassing Thailand’s approximately 4.5 million arrivals from China. The figures highlight Vietnam’s emergence as a significant regional rival as international tourism continues to recover following the COVID-19 pandemic.

A key factor behind Vietnam’s success is the diversity of its tourism offerings. Destinations include major cities such as Hanoi and Ho Chi Minh City, coastal resorts including Da Nang and Phu Quoc, and mountain areas such as Sa Pa. These locations appeal to a broad range of travellers interested in nature, culture, history, food and luxury experiences.

Tourism growth is also spreading beyond the country’s largest cities. Visitor numbers increased sharply in secondary destinations such as Phu Quoc and Sa Pa during 2025, reflecting changing travel preferences as tourists increasingly seek unique experiences and closer connections with nature.

Vietnam has supported this growth through more accessible visa policies, allowing visitors from several countries to enter without visas or remain for longer periods. The country has also invested heavily in infrastructure, including airports, hotels and international flight connections.

Vietnamese airlines have expanded services from China, Japan and Singapore, with potential future growth into European markets. These developments are designed to support long-term tourism growth rather than relying solely on natural demand.

Alongside increasing visitor numbers, Vietnam is seeking to attract higher-spending travellers who stay longer and return more frequently. Target markets include business travellers, conference and seminar groups, luxury tourists and medical tourists.

The strategy reflects lessons learned from established tourism destinations such as Thailand and Bali. Vietnam aims to avoid some of the challenges associated with mass tourism, including overcrowding, environmental pressure, rising living costs and uneven service standards.

Thailand’s experience remains particularly relevant. While Thailand has long been a leading tourism destination, the sector has faced challenges since the pandemic, including a slower recovery in Chinese arrivals, safety concerns, crime-related perceptions and ongoing debate about prioritising quality over quantity in tourism.

However, analysts note that Vietnam’s rapid expansion also carries risks. Significant investment in hotels, airports and tourism developments could create excess capacity if future visitor demand declines.

The Nation reported that the country’s long-term challenge will be balancing growth with sustainability while maintaining service quality, controlling overdevelopment and encouraging repeat visits. Success in these areas could help Vietnam establish itself as one of Asia’s leading tourism hubs while increasing competitive pressure across the ASEAN tourism market.

Picture courtesy of The Nation

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Anybody who travels to Thailand regular or a expat who lives here have been watching this coming year on year except the Thai authority’s who are too stupid or don’t care anyway.

25 minutes ago, Reddavy said:

Backpackers bring a lot of money for Thailand 🤣🤣🤣 Stay off the weed my friend.

I ran a successful business here for 10 years, supported mainly by those backpackers. 🤣I finally sold out when their numbers dropped due to visa changes.

21M tourists will soon overrun V-N just as they have overrun tourists. To quote a Canadian CEO I know: "Tourists are a goddamn plague.! In the instance he was citing, he proved absolutely correct.

As a snowbird who has been spending just short of 6 months each year between mid October to mid April for over 12 years now, I have to say Thailand is actually encouraging people like me to spend some time in Vietnam, thanks to their visa policies and their on-going border dispute with Cambodia. Instead of a same day trip to the border to reactivate another 60 days on your METV because of the border dispute, it's now either 2 trips to Vietnam, or an extension, a trip to Vietnam, then another extension (that was last year's itinerary). I enjoyed the trip to Vietnam last winter, and was very impressed with the beach in DaNang (nice clean beach and they were surfing). I might just do 2 trips to Vietnam next winter and spend more time there each trip (which means I'll be spending less time and money in Thailand). Figure it out Thailand, or lose out.

On 6/19/2026 at 8:59 PM, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

The actual economic data does not support you glorification of backpackers and their impact upon the economy. Can you cite any reputable economic sources for your claim or are your relying on imagined data? The backpackers offer little financial benefit to the overall economy which is why Vietnam has moved to quality hospitality facilities. Da Nang illustrates that with its bulldozing of the cheap hostels and building of affordable 3* and 4* hotels. A 10 storey hotel that occupies the space of a budget hostel and a few noodle shops employs more people at higher wages. It generates the tax revenue that the local government uses to pay for the road and sewage improvements. It also pays for the schools and health services. The guests of these hotels will spend much more on local goods and services than the backpackers.

Ho Chi Minh city isn't very walkable.

Very low walk scores.

If you love cheap chaos, go!

😀😃😄😁😆😅😂🤣

19 minutes ago, Patong2021 said:

The actual economic data does not support you glorification of backpackers and their impact upon the economy. Can you cite any reputable economic sources for your claim or are your relying on imagined data? The backpackers offer little financial benefit to the overall economy which is why Vietnam has moved to quality hospitality facilities. Da Nang illustrates that with its bulldozing of the cheap hostels and building of affordable 3* and 4* hotels. A 10 storey hotel that occupies the space of a budget hostel and a few noodle shops employs more people at higher wages. It generates the tax revenue that the local government uses to pay for the road and sewage improvements. It also pays for the schools and health services. The guests of these hotels will spend much more on local goods and services than the backpackers.

I have always thought an eclectic mix was the most successful blend for tourism, encompassing all people and budgets.

1 hour ago, Canadian Snowbird said:

As a snowbird who has been spending just short of 6 months each year between mid October to mid April for over 12 years now

Thailand needs to offer a 6-mo 'snowbird' visa, multi-entry, applied for beforehand and non-extendable.

More farang from colder climes are choosing to do 6-month splits between home country and Se Asia rather than living full time in Se Asia.

Thailand could charge a decent (but fair) price for this visa and attract some of those going to VNam simply because it's less hassle to stay longer.

On 6/20/2026 at 7:59 AM, FolkGuitar said:

About 15 years ago, Thaksin changed the visa rules and made it difficult for backpack travelers to stay in the Kingdom for more than 14 days without another visa run. At the same time, Vietnam was quickly building up its backpacker guest houses, resorts, and beach sites, attracting the backpackers with easy immigration rules and low costs. This cost Thailand dozens of closed and shuttered guesthouses everywhere. More and more backpack tourist changed their destinations, and headed for Nam.

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists. It's the backpack tourists who eat in the Mom&Pop noodle shops, buy T-shirts and circus pants from the local stores rather than from the big shopping malls, and take the classes [yoga, jewelry making, massage, cooking, etc.] that most package tours don't, bringing more income to locals.

Now Thailand is building big hotels as if the more they build, the richer tourists will come. And more and more of them are sitting deserted, half-built shells quickly being taken over by jungle vines. I can think of three of them within 5k of my house.
Tourists don't come to Thailand for the hotels. They come to Thailand for the rich and diverse cultural activities, the relaxed beaches, and the interesting cities with their nightlife and sightseeing.

What we seem to be left with is the TAT telling us that tourism is improving, the Hotel industry telling us that they are having trouble filling even 50% of their rooms with the richer package tourists, and the Guest Houses sitting empty. A drive through the back sois inside the Old City in Chiang Mai is on empty streets. Only a few individuals are walking around. Looking at empty tables at outdoor restaurants completes the story.
High Season will still see an increase, but will it ever be as it was before the Pandemic?

(Some people think it's good to get rid of backpackers, but they actually bring a LOT of income into Thailand because they stay longer and do more activities than the package tour tourists

Backpackers are a plague if you want to improve quality. And the few Baht spending at the market or 7/11 you can't address as SPENDING. Wealthy tourists don't want to be forced to mingle with filthy backpackers.