Fueled by a surge in Chinese visitors and a growing reputation for affordability and novel experiences, Vietnam is rapidly closing the gap with Thailand in the race to attract tourists in Southeast Asia, prompting concerns in Bangkok and a reevaluation of strategies.
At an economic conference in early October 2025, Thai Prime Minister Anutin Charnvirakul voiced his concerns that Thailand was “falling behind” Vietnam, describing it as his “worst nightmare.” He admitted he never imagined Thailand’s growth would be outpaced by other Indochinese nations. While Thailand still leads in several economic indicators like GDP per capita and established industries, Vietnam’s rapid growth, particularly in attracting Chinese tourists in early 2025, signals a significant shift in the region’s tourism landscape.
Vietnam’s Tourism Boom: Numbers Don’t Lie
Vietnam’s tourism sector is experiencing unprecedented growth. According to the General Statistics Office, the country welcomed a record 15.4 million international visitors in the first nine months of 2025, a remarkable 21.5% increase compared to the same period in 2024.
The Chinese Tourist Surge
The driving force behind this surge is the influx of Chinese tourists. China represents the largest source market for Vietnam’s tourism, accounting for nearly a quarter of all international arrivals. In the first nine months of 2025, nearly 3.9 million Chinese tourists visited Vietnam, marking a substantial 44% increase compared to the previous year.
Thailand’s Tourism Troubles
In stark contrast, Thailand’s tourism sector is facing headwinds. The Thai Ministry of Tourism and Sports reported on October 28, 2025, that the country had received 26.25 million foreign tourists between January 1 and October 26, 2025. This figure represents a 7.25% decrease compared to the same period last year.
Furthermore, the number of flights from China to Thailand decreased by over 11% in the first eight months of 2025. The total number of Chinese tourists visiting Thailand from the beginning of the year to the end of September totaled approximately 3.3 million.
Thailand Losing Market Share
Bloomberg reported in September 2025 that while Thailand remains a leader in attracting international tourists in the region, it is gradually losing market share. The news agency suggests that Vietnam’s rapid growth is reshaping Southeast Asia’s multi-billion-dollar tourism industry.
Malaysia Also Benefiting
Vietnam is not the only country benefiting from this shift. Malaysia has also seen a significant increase in Chinese tourists, with a 35% rise in the first half of the year. The number of flights from China to Malaysia has increased by nearly 50%.
Financial Implications
China Trading Desk, a firm specializing in tracking Chinese travel and spending habits, estimates that this shift could cost Thailand over $3.5 billion in revenue, with that money potentially flowing into Vietnam and neighboring countries.
Why Vietnam is Winning Over Chinese Tourists
Several factors contribute to Vietnam’s growing popularity among Chinese tourists.
Safety Concerns in Thailand
Dr. Suriya Khamwan, a lecturer at Nakhon Phanom University, suggests that the shift is not coincidental but is influenced by factors including concerns about safety and Thailand’s tourism image. He pointed to the rise of illegal and underground businesses owned by Chinese nationals as a significant issue in Thailand.
The Wang Xing Incident
Dr. Khamwan referenced the case of Chinese actor Wang Xing, who was allegedly lured and held captive at a scam compound in Myanmar after flying to Thailand for an acting job. Although the actor was eventually rescued, the incident sparked widespread concern on Chinese social media, raising anxieties about traveling to Thailand.
Impact of Border Conflicts
The conflict between Thailand and Cambodia in late July also contributed to a decline in international tourist arrivals due to safety concerns.
The Appeal of New Destinations
Dr. Khamwan believes that Chinese tourists are increasingly seeking new and exciting destinations beyond the usual tourist hotspots like Bangkok, Chiang Mai, Pattaya, and Phuket.
Perceived Value for Money
Many Chinese tourists have complained on social media about the rising costs of hotels, restaurants, and transportation in Thailand, leading some to believe that traveling to the country is no longer as affordable as it once was.
According to Dr. Khamwan, Vietnam offers a perception of better value. The Vietnamese Dong is weaker than the Thai Baht, making food, shopping, and other expenses seem more affordable to tourists, creating a “worth the money” sentiment.
Regional Competition
Experts emphasize the role of regional competition. As Thailand grapples with issues of cost, safety, and tourism image, neighboring countries like Vietnam, Malaysia, and Cambodia are gaining attention as attractive alternatives.
Thailand’s Response: A Multi-Pronged Approach
Thailand is implementing a three-pronged strategy to revitalize its tourism sector, focusing on policy, marketing, and new market development.
Visa Facilitation and Marketing Campaigns
Thailand is streamlining visa and entry procedures for tourists. Simultaneously, the country is launching targeted marketing campaigns like the “Nihao Month” to attract Chinese visitors and promote a positive image and high-quality services.
“Trusted Thailand” Certification
Thailand is implementing a “Trusted Thailand” certification program. This program awards a “Trusted Thailand” seal to tourism businesses that meet safety and quality standards, giving tourists assurance.
Tourist DigiPay Pilot Project
The country is also piloting a “Tourist DigiPay” project, which allows tourists to use digital currencies. The goal is to allow tourists to exchange cryptocurrency for Thai Baht for spending within Thailand.
Diversifying Tourist Base
In addition to short-term tactics, Thai authorities are pursuing long-term solutions, including diversifying their tourism markets to reduce reliance on Chinese visitors. They are expanding outreach to new markets such as Japan, South Korea, India, and the Middle East.
Recent Growth
Towards the end of October, Thailand saw a significant increase with 592,196 foreign tourists, averaging 84,599 arrivals per day. This boost was attributed to a combination of peak travel season (China’s National Day Golden Week, India’s Diwali festival) and major entertainment events, such as the world tour of the K-pop group BLACKPINK.
Thailand Still Ahead
Despite Vietnam’s recent tourism achievements, Mr. Nguyen Van My, Chairman of Lua Viet Travel Company, based in Ho Chi Minh City, believes that Thailand still has a significant advantage.
“Thailand is far ahead of Vietnam. Vietnam is running, but Thailand is also running; they are not waiting for Vietnam, so Vietnam must find a way to run faster,” he said.
Vietnam’s Strengths and Weaknesses
With 17.5 million international visitors in 2024, Vietnam surpassed Singapore and ranked only behind Malaysia and Thailand in attracting tourists in Southeast Asia.
Untapped Potential
According to Mr. Nguyen Van My, Vietnam possesses unique tourism assets that Thailand lacks, such as highlands, a network of canals in the Mekong Delta, and numerous caves. Vietnam is also considered politically stable, free from protests, attacks, or wars.
Artificial Tourist Attractions and Open Policies
Dr. Suriya Khamwan emphasizes that in addition to its rich natural landscapes, Vietnam boasts varied man-made attractions and open tourism policies, especially post-COVID-19.
He believes that artificial tourist attractions like Vinpearl facilities or Ba Na Hills are attracting more and more Thai and international tourists.
Service Quality Concerns
However, experts note that Thailand’s service and tourism professionalism remains superior to Vietnam’s.
Lack of Integration
“What Vietnam lacks far behind other countries is integration. Visitors to Thailand are visitors of the Thai people; they can eat and play anywhere. But in Vietnam, if you go to this place, the other place will not allow you to use any services; they will give you dirty looks,” Mr. My said.
He explained that Thailand integrates shopping destinations, distributing revenue and income from those destinations, leading to fully subsidized transportation for tours, even providing rebates to tour companies, transportation providers, and even Vietnamese tour guides. This contributes to the affordability of tours to Thailand.
Affordable Tours
According to BBC News Tiếng Việt, package tours from Vietnam to Bangkok and Pattaya in Thailand lasting 5 days and 4 nights can cost as little as over 7 million VND (Vietnamese Dong), a price comparable to or even cheaper than domestic travel.
Revenue Sharing
In contrast, Mr. My says that while Vietnam has shopping destinations, most are small, and there is no revenue sharing. Instead, there is a fixed fee per vehicle.
“That is mainly shared between the driver and the guide; the companies do not benefit, and the tourists even less,” he said.
Tax Incentives and Special Programs
The Chairman of Lua Viet Travel also notes that Thailand offers tax breaks for travel companies and special incentive programs.
“We buy rooms even cheaper than Thais, because they believe that foreign tourists who come to Thailand usually eat and stay there. When filmmakers register to film there, they take care of all the paperwork and provide free backstage support, only charging for the Vietnamese crew’s food and lodging,” Mr. My told the BBC.
He added that Vietnam has yet to implement such incentives.
Management Issues
Mr. My points out inefficiencies in management: “We often joke that they are in a vertical line, while the system in Vietnam is like a star. For example, the Ho Chi Minh City Department of Tourism, in terms of expertise, has a superior, the National Tourism Administration, but is appointed by the City Party Committee and paid by the Ho Chi Minh City People’s Committee, so there are many overlaps. In Thailand, if a lower-level department does not complete its tasks, they are immediately dismissed, but Vietnam cannot do that.”
He believes that the apparatus and mechanisms are bottlenecks hindering Vietnam’s tourism development. For example, most tourism managers come from political backgrounds rather than technical expertise, leading to tourism being done in a movement style, focusing on quantity but not revenue, per capita expenditure, or the number of returning visitors.
High-End Tourism
Mr. Pham Ha, Chairman and CEO of Lux Group, a luxury travel company in Vietnam, agrees that Vietnam has more resources than Thailand. If these bottlenecks could be resolved, for example, if institutions and policies were changed to be more open and tourism was truly considered as an economic industry, Vietnam would have a very good opportunity to become a competitor and a tourism powerhouse in Southeast Asia.
He also suggests that Vietnam’s tourism slogan, “Vietnam – Timeless Charm,” which was announced in 2011, is outdated and needs to be refreshed, along with upgrading infrastructure.
“Currently, Vietnam’s management agencies are not really strong; if [they] were stronger, with capabilities like Thailand, for example, Vietnam could be a very good tourism country in the near future,” he added.
Can Vietnam Overtake Thailand?
While Vietnam has surpassed Thailand in the number of Chinese tourists for most of 2025, indicating a clear shift in the Southeast Asian tourism market, experts believe that Thai tourism still outperforms Vietnam in the short term.
Short-Term Advantages for Thailand
“In the short term, Thailand will still maintain its number one position, thanks to good infrastructure, long-standing tourism management experience, and professional tourism services,” Dr. Khamwan said.
Long-Term Potential for Vietnam
“However, in about 5 years or more, if Thailand does not solve the problems of safety, cost, and saturation of tourism products, Vietnam may surpass it to become the number one destination in Southeast Asia, especially for Chinese tourists,” he added.
Importance of Leadership
Mr. Nguyen Van My emphasizes the importance of change in leadership levels.
“Since General Secretary To Lam took office, there have been many positive signs. He wants to open a new era, but it is important to remove the long-standing obstacles, because if someone else comes in halfway and they change again…”
“Currently, Vietnamese tourism and the Vietnamese economy are developing like a penguin, overcoming difficulties. If it can be removed, it can definitely surpass Thailand in 5-10 years, provided there is a change in thinking, mechanisms, and ways of doing things,” Mr. My said.
“First, there should be a change in thinking, identifying tourism as an economic industry, not focusing on quantity for reporting but focusing on revenue, high-end segments, the number of returning visitors, and also need technocrats, people who are good at management.”
“Second, the problem of integration in the industry and between industries must be solved, because now everyone is doing their own thing, making it very difficult for Vietnamese businesses. Foreign tourists to Vietnam often buy tours at least 6 months in advance, while Vietnam suddenly increases prices; if we continue to do that, we will lose money, and if we don’t, customers will sue.”
“Currently, those involved in tourism are also very difficult as the Vietnamese Dong depreciates against the dollar and gold,” he shared.
Focus on Luxury Tourism
Mr. Pham Ha adds that Vietnam needs to position itself as a high-end, luxury destination in addition to attracting mass tourists.
“We specialize in the luxury market, which only accounts for about 3-5% of the number of tourists to Vietnam. In the time working with them, it is clear that Vietnam is a new destination with many experiences, and they focus on personalization, using services that suit their preferences and cultural experiences,” the Chairman of Lux Group said.
He believes that tourism needs to focus on “5C”, including culture, customization, cuisine, community, and content.
“To attract 5-star guests, Vietnam must have 5-star human resources, be able to speak English, improve skills, services, and finally reposition the Vietnamese tourism brand and promote it more effectively on the international stage,” he concluded.
Despite facing numerous challenges, Vietnam’s tourism sector remains poised for continued growth, potentially reshaping the Southeast Asian tourism landscape in the years to come.
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