Vietnam’s Tourism Boom: Chinese Visitors Drive Record-Breaking Recovery

Hanoi, Vietnam—Vietnam has emerged as a regional leader in Asia’s post-pandemic tourism recovery, with data from 2024 showing its international visitor arrivals nearly returned to pre-COVID-19 levels, far outpacing several regional rivals, including Thailand. The engine of this impressive surge is the dramatic return of Chinese tourists, a shift that is redefining the competitive landscape in Southeast Asian travel.

Vietnam is on track to welcome over 22 million international visitors this year, marking a historic rebound for its tourism sector. The surge, led by a wave of Chinese travelers, positions Vietnam as Southeast Asia’s new tourism powerhouse. Thailand’s tourism sector is now engaged in an escalating “Tourism War” across Asia. While Thailand remains a global draw, its slower recovery rate in the Chinese market highlights a need for strategy adjustment.

The China Factor: A Market Shift

Vietnam has overtaken Thailand as the top destination for mainland Chinese tourists, drawing 4 million visitors from China through October. Safety concerns in Thailand and cautious consumer spending have redirected travel flows, with Vietnam benefiting from its proximity and perceived stability.

The influx of Chinese visitors is the single biggest catalyst for Vietnam’s boom and is actively shifting the regional tourism hierarchy:

• Explosive Growth: China became Vietnam’s second-largest source market in 2024 (behind South Korea), with nearly 3.74 million visitors, marking a staggering 114% increase over 2023.
• Surpassing Thailand: Analysts note that Vietnam has become the top destination for mainland Chinese tourists in ASEAN, reportedly surpassing Thailand. This shift is driven by Chinese travelers’ increased focus on lower travel costs (due to Vietnam’s geographic proximity and a weaker Dong) and safety concerns that have recently impacted other destinations.
• Economic Impact: The direct and indirect contribution of tourism to Vietnam’s GDP is estimated to be over 15%, with the resurgence of Chinese spending driving retail sales and boosting revenues for local operators.

Vietnam Leads ASEAN Recovery

By the end of 2024, Vietnam is estimated to have welcomed nearly 17.6 million international visitors, reaching approximately 98% of its record 2019 figures. This recovery rate is significantly higher than the average for the Asia-Pacific region and notably surpasses major competitors in ASEAN:

This success is largely attributed to proactive government strategies, particularly an expanded and more liberal visa policy and targeted promotion efforts.

Stability and Strategy Pay Off

Vietnam’s political calm stands in contrast to regional unrest, including ongoing border tensions between Thailand and Cambodia and lingering protests in Indonesia. The government has extended visa-free stays for 12 countries and pursued a weaker currency policy to attract foreign spending.

Cultural Appeal and Media Influence

Vietnam’s rich heritage and natural beauty continue to captivate visitors. Recent media exposure—from Netflix’s A Tourist’s Guide to Love to Bollywood’s Love in Vietnam—has amplified its global allure. A viral YouTube video by a local singer also helped spotlight the country’s landscapes and culture.

Economic Impact and Domestic Investment

This boom represents a significant realignment of tourism capital in Southeast Asia. Business and tourism operators in Thailand should analyze the value proposition being offered by Vietnam (affordability, proximity for road/rail access, and effective visa rules) to identify key areas for competitive differentiation in the coming years.

Tourism revenue rose 48.4% year-on-year in the first eight months of 2024, fueling a 6.7% growth in retail. Major Vietnamese firms are capitalizing on the boom:

• Sun Group launched a new airline focused on Phu Quoc Island.
• Vinpearl and Saigon Tourist are expanding hospitality offerings.

Challenges and Headlines

Future Focus: With Vietnam aggressively targeting 22-25 million foreign visitors in 2025, the competition for tourists from China, Korea, and India will only become fiercer, demanding that Thai tourism continues to innovate its offerings and enhance its digital marketing presence.

Despite the upswing, the sector faces risks. A tragic boat accident in Ha Long Bay claimed 38 lives during a typhoon, highlighting safety concerns. Meanwhile, Vietnam drew global attention with high-profile events, including the 50th anniversary of the Vietnam War’s end and a controversial trade deal with U.S. President Donald Trump, whose family plans to build a golf course near Hanoi.

Vietnam’s simplified visa policies have proven highly effective in attracting high-volume markets. Thai businesses and policymakers must monitor these dynamics closely and continue adapting strategies—such as the existing visa exemptions and destination safety initiatives—to compete for the high-value traveler segment.