Vietnam Surges as New Favorite for Indian Tourists

Vietnam is rapidly emerging as a new favorite for Indian holidaymakers, with a surge in arrivals, relaxed visa rules and expanding air links positioning the country as a serious challenger to Thailand’s long-held dominance in the region.

Indian Arrivals to Vietnam Climb to Record Levels

Publicly available tourism data show that Vietnam welcomed around half a million visitors from India in 2024, more than three times the pre-pandemic total. Industry reports describe India as one of Vietnam’s fastest growing source markets in the last two years, lifting it into the upper tier of international visitor origins for the country.

Vietnam’s national tourism authorities highlight India as a “potential” market that has moved into the mainstream as flight connectivity and marketing efforts have intensified. Arrivals from India rose from well under 200,000 in 2022 to several hundred thousand in 2023, before crossing the 500,000 mark in 2024. That trajectory contrasts with many traditional markets, where growth has been steadier rather than explosive.

Analysts note that India’s expanding middle class, increased disposable income and appetite for short international breaks are reinforcing the new trend. Vietnam’s relatively affordable prices compared with long-haul destinations in Europe or North America are also drawing cost-conscious but experience-focused travelers.

The acceleration has continued into 2025, according to sector commentary, with travel businesses in both countries reporting strong forward bookings, particularly for peak Indian holiday periods such as Diwali, school vacations and major wedding seasons.

Vietnam Challenges Thailand in the Regional Tourism Race

Thailand remains the most popular Southeast Asian destination for Indian travelers, with recent tourism data indicating around two million Indian arrivals in 2024 and higher volumes projected for 2025. However, reports from regional media suggest the gap is narrowing as Vietnam scales up its exposure and infrastructure for the Indian market.

Comparative analysis in trade publications points out that while Thailand still welcomes roughly four times as many Indian tourists as Vietnam, the growth rate in Vietnam is significantly higher. Vietnam’s Indian arrivals have multiplied several-fold since before 2020, while Thailand is building back from pre-pandemic baselines.

Travel industry observers say the competitive dynamic is now visible in airline scheduling, destination marketing campaigns and package pricing tailored to Indian preferences. Vietnam’s emergence is changing how Indian travelers think about Southeast Asia, with Hanoi, Ho Chi Minh City and Da Nang increasingly appearing alongside Bangkok, Phuket and Krabi in travel searches and itineraries.

Some regional analysts describe the situation as a “race” for India’s booming outbound market, noting that both countries are betting on Indian tourists to help sustain post-pandemic tourism recoveries and diversify away from overreliance on a handful of Northeast Asian and Western markets.

Visa Reforms and Direct Flights Boost Accessibility

One of Vietnam’s most notable advantages in recent seasons has been the liberalization of entry rules. Public information from Vietnam’s immigration authorities confirms that the country now issues electronic visas valid for up to 90 days, with both single and multiple-entry options available to most nationalities, including Indian citizens. The extended validity gives Indian travelers more flexibility for longer trips and multi-country itineraries across Southeast Asia.

Thailand has responded with its own measures, using limited-period visa waivers and simplified procedures to keep Indian arrivals strong. Nonetheless, Vietnam’s shift from short-stay, single-entry permits to longer and more flexible e-visas is widely seen by the travel trade as a turning point in its competition for Indian visitors.

Connectivity has expanded in parallel. Airlines from both countries now operate dozens of direct services every week between major Indian cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad and Vietnamese hubs including Hanoi, Ho Chi Minh City and Da Nang. New routes launched by carriers such as Air India and Vietnamese airlines in 2024 and 2025 have significantly increased seat capacity on the corridor.

Travel planners say that flight times of roughly four to five hours put Vietnam in the same range as Thailand for many Indian cities, making it an appealing choice for long weekends, corporate incentives and destination weddings. Competitive airfares on newly added routes are further lowering barriers for first-time travelers.

Targeted Marketing, Weddings and Corporate Travel Drive Demand

Vietnamese and Indian tourism agencies have stepped up joint promotions in recent years, with Indian tourism fairs in Hanoi and Ho Chi Minh City mirrored by Vietnam’s participation in major travel trade shows in India. Published coverage of these events highlights a deliberate focus on segments where Indian demand is particularly strong, such as weddings, honeymoons, family packages and corporate incentives.

Destination marketing materials emphasize Vietnam’s mix of beaches, heritage sites and city experiences, which align closely with Indian travelers’ preferences for diverse activities within a single trip. Beach resorts along the central and southern coasts, cruise-style day trips in places such as Ha Long Bay, and cultural circuits linking Hanoi, Hue and Hoi An are being packaged for Indian tour operators at increasingly competitive rates.

Corporate travel is also playing a visible role. Reports from Vietnam’s tourism authorities note that large Indian companies have recently chosen Vietnamese cities for incentive trips involving thousands of employees, signaling the country’s growing capacity to host big groups. Hotels, convention centers and local destination management companies are adapting services, including food and event management, to cater more effectively to Indian corporate clients.

For Indian travelers, these developments translate into a wider array of itineraries and budgets, from mid-range family holidays to luxury experiences and high-profile events. For Vietnam, they represent a strategic push to secure a larger share of a rapidly expanding outbound market that is reshaping tourism flows across Asia.

Pricing, Experiences and Future Prospects

Comparative pricing remains one of Vietnam’s strengths. Travel commentaries often note that four-star and five-star accommodation, spa services and guided excursions in Vietnam can cost less than similar experiences in many other Asian hotspots. For Indian visitors balancing rising airfares and currency considerations, this relative affordability is an important factor when choosing between destinations.

Beyond price, Indian travelers are responding to Vietnam’s varied experiences, from street food and coffee culture in Hanoi and Ho Chi Minh City to natural landscapes in Ninh Binh, Phu Quoc and the central highlands. Short domestic flights and improved road links are making multi-city itineraries more practical within a week-long stay.

Tourism planners in both countries are watching how policy decisions will influence the next stage of growth. Vietnam continues to refine its e-visa system and promote itself in secondary Indian cities, while Thailand is weighing the long-term shape of its visa policies and product offerings for South Asian markets. Industry forecasts suggest that if current trends persist, Vietnam’s share of Indian outbound travel will keep rising, even as Thailand maintains a lead in absolute visitor numbers.

For now, the rapid increase in Indian arrivals is already reshaping Vietnam’s visitor profile and underlining the importance of South Asia in the country’s tourism strategy. As more flights, tailored products and cooperative campaigns come online, competition for Indian tourists is set to remain a central theme in Southeast Asia’s travel landscape.