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

 

And as as bonus, there is no war, no border squabbles,  Vietnam's war finished more than 50 years ago, and in the meantime, the Vietnamese have built a great tourist industry. I imagine that the TAT just looks enviously on as tourists "Flock, Swarm, Invade, Arrive en masse, swamp, deluge, take over, run rampant, party, holiday and spend money!!!!!

I am going with my better half for five days to Phu Quoc in October.

 

Many times in Vietnam, I love it there,

Thailand get obsessed about Vietnam.They still not want to face it.

Vietnam take over as the worlds second biggest exporter of rice after India.

Thailand still manipulate the baht makes importers buy from Vietnam and India.

But Thailand only talking about trillions of baht that they want get.

2 hours ago, Formaleins said:

And as as bonus, there is no war, no border squabbles,  Vietnam's war finished more than 50 years ago, and in the meantime, the Vietnamese have built a great tourist industry. I imagine that the TAT just looks enviously on as tourists "Flock, Swarm, Invade, Arrive en masse, swamp, deluge, take over, run rampant, party, holiday and spend money!!!!!

 

Looks like Vietnam has changed quite a lot in the past decades.

While they are said  to have:

 

Had  strong xenophobia until 1990s, because of their tragic history in the past.

 

Double pricing practice for foreigners.

 

And Vietnam is going this without being the official hub of two dozen different things! 

 

It is called progress. Something the Thai politicians seem to abhor. They prefer backwards movement. 

Vietnam is welcoming tourists and Thailand is just expecting them. Big difference. 

Have been saying it on this forum since many many years.

19 hours ago, snoop1130 said:

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.

Thailand is starting to look tired.. clean up the tourism infrastructure or keep sliding.

Slowly Thailand is sinking toward just a core group of sex tourists who keep coming back.

 

There ARE other repeat customers, but it’s a shrinking group. Fewer backpackers in the young crowd, although Thailand can argue that is part of it’s quality over quantity strategy. Middle aged tourists who are still keen to try something different is a shrinking group. They tried Thailand already. People on a budget are put off by rising prices here, higher air fares and a high exchange rate.

 

Yep, Thailand has a maturing tourist product for sure. Moving up market makes sense, but idiotic pronouncements by TAT doesn’t achieve that, improving their product does it. And let’s face it, the product hasn’t improved for years.

While Thais are very nationalistic in their drive, they also prefer "Khong nohk", i.e. imported stuff. To quite a slice of the tourism cake, Thais prefer to travel "overseas" and latter already refers to border hopping into Lao, Malaysia and - until recently - Cambodia.

The Vietnamese tourism product, meanwhile, is just much better value for money, in the hospitality industry language is never an uphill struggle compared to Thailand and the local tourists are not really attractive as twin rooms are occupied by a whole village, rooms are being sometimes devastated, anything moveable .... moves and gets stolen. This does not apply to all Thai tourists but I am doing a fair share of travel and have seen the most challenging "discussions" upon check-out. 

You would have to go to the roots; change the behavior of Thai tourists recognizing that they rent accommodation without stealing anything, not showing up with their own foam bowl of Somtam in a hotel coffee shop or restaurant and booze from outside does not enrich the restaurant's coffers as well. 

Likewise the operators need to look forward; teach staff to the level, that they understand, that salaries are paid by the guests and not by the owner in his Mercedes-Benz in front of the main entrance 😉 

It will happen over time but I think, Thailand is not quite there yet to accept, that their course of "we are the greatest" is not really true! 

Thailand needs to start treating foreigners as an asset not a liability

Meanwhile the government attempts to get Thais to take holidays in Thailand with subsidies (that don't work).  But they say it is unfair if Vietnam tries to boost its own domestic tourism.  Just like Thais, the vast majority of Vietnamese don't travel overseas anyway.  

 

Thai tourism authorities live in the past and rest on their laurels.  They make no effort to be more competitive or reduce dual pricing or other tourism scams.  Meanwhile Thai prices have become uncompetitive.  If Burma ever gets its act together, it will wipe the floor on tourism.  It has so much undeveloped coastline and islands.  I went to Napoli Beach some years ago.  Lovely coastline in Rachine State but only one semi decent hotel and, even there the swimming pool was green and smelly.  Outside nothing but crap.  People living in dire poverty.  No restaurants or attractions.  There was a big beach down the road with Burmese swimming fully clothed in car inner tubes and garbage all over the place.  No amenities and the locals stared at foreigners and asked intrusive questions.  There are thousands of beach resorts like that in Burma that will one day be transformed.  In Thailand Phuket and Samui have been completely concreted over and are unrecognisable today.  In shops and hotels you can hardly find anyone that can speak Thai, even the gardners and room maids are foreigners.  Front desk are Filipinos. .  Thais feel they are in a foreign country.  So they may as well go abroad.

4 hours ago, black tabby12345 said:

 

Looks like Vietnam has changed quite a lot in the past decades...

 

Had  strong xenophobia...

 

Double pricing practice for foreigners.

 

 

 

That is, just like Thailand now

 

5 hours ago, Scouse123 said:

I am going with my better half for five days to Phu Quoc in October.

 

Many times in Vietnam, I love it there,

 

So do I, especially with my friends in Hanoi.

Something as simple as vaping being illegal and enforced can potentially push millions of people to choose a different location to Thailand. So many things need to change here if Thailand wants to keep tourists coming back.

9 hours ago, Formaleins said:

And as as bonus, there is no war, no border squabbles,  Vietnam's war finished more than 50 years ago, and in the meantime, the Vietnamese have built a great tourist industry. I imagine that the TAT just looks enviously on as tourists "Flock, Swarm, Invade, Arrive en masse, swamp, deluge, take over, run rampant, party, holiday and spend money!!!!!

 

Not to mention reasonably priced tourist attractions... I would like to travel more often to Vietnam, but worry that, upon returning to Bangkok, I am pushing my luck to visit Thailand once more. Oh well, perhaps I will stay there longer instead in the future... 😁 

4 hours ago, Espanol said:

 

 

That is, just like Thailand now

 

Apart from some rip off often heard from touristy areas,

I haven't really experienced hate of foreigners myself.

Have been here for the past 2 decades.

Vietnam is just so much a better experience now they have improved infrustructure in many cities.

 

They still have controlled visa restrictions for Indians. And for those on long term visas they require criminal record checks so you don't have Benidorm brits around. 

On 8/8/2025 at 12:21 PM, wensiensheng said:

Slowly Thailand is sinking toward just a core group of sex tourists who keep coming back.

 

There ARE other repeat customers, but it’s a shrinking group. Fewer backpackers in the young crowd, although Thailand can argue that is part of it’s quality over quantity strategy. Middle aged tourists who are still keen to try something different is a shrinking group. They tried Thailand already. People on a budget are put off by rising prices here, higher air fares and a high exchange rate.

 

Yep, Thailand has a maturing tourist product for sure. Moving up market makes sense, but idiotic pronouncements by TAT doesn’t achieve that, improving their product does it. And let’s face it, the product hasn’t improved for years.

Maturing tourist product is right!  I can't remember when last I saw some young hotties in the tourist lady bars!