Tourism Thailand Struggles as Vietnam Prioritises Local Tourism

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Photo courtesy of Bangkok Post

 

Vietnam's growing tourism industry is posing significant challenges for Thailand in attracting Vietnamese tourists. The Tourism Authority of Thailand (TAT) reports that carriers in Vietnam are reallocating aircraft to bolster domestic tourism, impacting travel between the two nations.

 

Supakan Yodchun, director of TAT’s Ho Chi Minh City office, highlighted a 10% reduction in available seats on flights connecting Vietnam and Thailand, dropping from 2.6 million in 2023 to 2.34 million this year. The trend shows no signs of abating, with a further 12% decline in seat capacity observed.

 

A key development is the opening of Terminal 3 at Tan Son Nhat airport, dedicated to domestic flights. This has prompted Vietnamese airlines to shift approximately 40 aircraft to cater to domestic holidaymakers. In 2024 alone, Vietnam recorded 110 million domestic tourists, with expectations of reaching 120-130 million this year.

 

“This growth in international arrivals boosts national pride in Vietnam’s tourism as an economic engine. Many Vietnamese are now prioritising travel within their own country,” explained Mrs Supakan.

 

The economic impact is evident. Vietnam’s tourism sector generated roughly 840 trillion dong (about 1 trillion baht) in 2024, a 23.8% increase from foreign visitor numbers reaching 17.5 million. The country aims to further escalate revenue to 980–1,050 trillion dong by 2025, welcoming 22-23 million tourists.

 

Recent administrative changes in Vietnam also pose potential hurdles. The country restructured its provinces from 63 to 34, and reduced ministries and departments from 22 to 17, as part of a wider tax reform. This upheaval has led to a temporary halt in international travel decisions, with bureaucrats advised to avoid overseas trips and tourists cautiously assessing the economic shifts.

 

Compounding the challenge is the rise of China as a competitive tourist destination. Offering 460 weekly flights and economical travel packages, China is increasingly attractive to Vietnamese tourists.

 

“Though Thailand remains the second favourite overseas choice for Vietnamese travellers this year, many are increasingly wary of safety concerns due to negative reports,” Mrs Supakan noted.

 

Despite these setbacks, Vietnam’s growing population of 101.4 million, particularly the 32.9 million in the median age group, signals continued growth potential. With an average income of 10,239 baht monthly (8.3 million dong), rising 8.6% year-on-year, the urban population earns even more, at around 12,337 baht (10 million dong).

 

As Vietnam focuses on its own tourism industry, Thailand faces the challenge of redefining its appeal to Vietnamese visitors amid shifting dynamics and intensifying regional competition.

 

  Adapted by ASEAN Now from Bangkok Post 2025-08-07