Is Vietnam Stealing Thailand’s Tourism Spotlight?
Thailand, long hailed as Southeast Asia’s tourism powerhouse, may be facing serious competition from an unexpected rival: Vietnam. Recent tourism figures have sparked concern among Thai industry leaders, as Vietnam’s visitor numbers surged by nearly 50% in March compared to pre-pandemic levels — a stark contrast to Thailand’s sluggish recovery.
According to Thanet Supornsahasrungsi, President of the Chon Buri Tourism Federation, Vietnam’s rising popularity is no coincidence. With its affordable living costs, modern family-friendly resorts, and attractive all-inclusive packages, the country is rapidly becoming a favourite among global travellers. “Vietnam’s resorts offer similar experiences at half the price,” Thanet noted, adding that this cost advantage is drawing tourists away from traditional Thai destinations.
Vietnam has set an ambitious target of 23 million foreign arrivals in 2025, while Thailand recently lowered its forecast to 36.5 million, down from the earlier goal of 38.5 million. The numbers from March paint a telling picture: Vietnam welcomed over 2 million tourists — a 40% jump from 2019 — while Thailand received 2.7 million, still 20% below pre-pandemic levels.
Vietnam’s edge also lies in its aggressive support for international travel agencies. Measures like subsidised flights and reduced airport fees — particularly for markets like Russia — have encouraged agents to shift tours from Phuket to emerging hotspots such as Nha Trang. Add to that Vietnam’s efficient airport infrastructure, which cuts down travel time, and it’s clear why the country is gaining ground fast.
In Thailand, tourism experts are urging action. Thanet warns that without infrastructure upgrades and fresh attractions, Thailand could lose its competitive appeal. He’s calling on the government to intensify tourism development and boost safety standards to meet arrival targets.
Echoing these concerns, Sanga Ruangwattanakul, President of the Khao San Road Business Association, highlights Bangkok’s decline in tourist traffic, especially from China, as more travellers pivot toward Vietnam’s diverse landscapes and vibrant nightlife.
In response, the Association of Thai Travel Agents (Atta) has pitched a 320 million baht subsidy plan aimed at revitalising Chinese tourism. The proposal, backed by projections of 8.3 billion baht in revenue, hinges on strict conditions, including flight quotas and private sector partnerships to share the cost burden.
With Vietnam gaining momentum, Thailand faces mounting pressure to innovate and reclaim its status as Southeast Asia’s top tourist destination. The race is on — and the world is watching.
