When Travelmao last examined Vietnam's tourism prospects in April, the country was already being hailed as Southeast Asia's comeback story. Four months on, the narrative has hardened into something more consequential: Vietnam is no longer just recovering — it is actively reshaping the region's competitive balance.
As Ho Chi Minh City prepares to host ITE-HCMC 2026, the country's tourism sector is drawing fresh attention from global travel buyers, hotel investors, and airline planners. The numbers justify the buzz. According to ASEAN Secretariat data released at the end of 2025, Vietnam's international arrivals rose 20.4% year-on-year — the steepest climb in Southeast Asia, comfortably ahead of Malaysia, Indonesia, and Singapore. UN Tourism has likewise placed Vietnam among the fastest-growing markets in Asia-Pacific.
Thailand and Malaysia still welcome more visitors in absolute terms, but the gap is narrowing. Vietnam's aggressive airport expansion, a more liberal visa regime, and a diversified product mix — from Ha Long Bay to the highlands of Da Nang and the island escapes of Phu Quoc — have turned it into a credible challenger for the region's tourism crown.
What's holding Vietnam back
Yet momentum alone does not guarantee supremacy. Vietnam's tourism marketing remains less sophisticated than Thailand's, and hospitality standards — particularly outside the major urban hubs — are still catching up. The country also faces a classic growth dilemma: rapid development risks degrading the very ecological and cultural assets that draw visitors. Overcrowding at iconic sites like Ha Long Bay and the ancient town of Hoi An has already prompted concerns among conservationists and tour operators.
Infrastructure, while improving, still lags in secondary destinations. The new Long Thanh International Airport, slated to open near Ho Chi Minh City, will help, but domestic connectivity to emerging areas like Phu Quoc and Da Nang needs further investment. As one industry analyst put it, "Vietnam has the product and the price point, but it needs to match Thailand's marketing muscle and service consistency."
What's working in Vietnam's favour
Vietnam's policy shift on visas has been a game-changer. The expansion of e-visas to 90-day multi-entry stays and the broadening of unilateral visa exemptions have significantly reduced travel friction. This has been particularly effective in attracting long-haul markets from Europe and North America, where travellers increasingly seek multi-destination itineraries.
On the aviation front, Vietnamese carriers are expanding aggressively. Vietjet's recent route additions to the Philippines, Thailand, and Japan underscore the country's growing connectivity. Meanwhile, the government's push to upgrade airports — including Noi Bai and Tan Son Nhat — is easing capacity constraints and improving the passenger experience.
Vietnam is also deliberately courting the high-yield segment. The country is scaling up investments in eco-tourism, luxury resorts, and cultural preservation, moving away from mass-market, cookie-cutter offerings. Properties like Regent Phu Quoc are positioning the island as a luxury destination, while MICE infrastructure is getting a boost — Spalba's recent signings of two Vietnam resorts are a case in point.
Thailand, for its part, is not standing still. The Tourism Authority of Thailand continues to innovate, from wellness campaigns like surf therapy to new hotel openings such as JW Marriott Khao Lak. But Vietnam's growth trajectory suggests the regional hierarchy is no longer a foregone conclusion.
For travel professionals, the implications are clear. Vietnam offers a compelling alternative for tour operators seeking fresh itineraries, for hoteliers eyeing expansion in emerging markets, and for airlines looking to add capacity on routes that are still underserved. The country's challenge is to manage growth sustainably while closing the service gap with its more established neighbour.
Whether Vietnam can ultimately surpass Thailand remains an open question. But with its current momentum, the answer may no longer be a simple no.
