Continued Vietnam Tourism Growth Challenges Thailand

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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Adapted by ASEAN Now Nation 20 June 2026