Vietnam Tourism Surges Among Indian Travelers as Thailand Rivalry Grows

Vietnam is rapidly emerging as a preferred Southeast Asian destination for Indian travelers, with rising arrivals, expanded air links and evolving visa policies positioning the country as a growing rival to Thailand in the race for South Asia’s outbound tourism market.

Indian Arrivals to Vietnam Climb to Record Levels

Publicly available tourism data indicates that Vietnam has seen a sharp rise in visitors from India over the last two years, turning what was once a modest market into one of its fastest growing segments. Figures released by the Vietnam National Authority of Tourism show Indian arrivals increasing from around 138,000 visitors in 2022 to approximately 392,000 in 2023 and about 501,000 in 2024, more than tripling in just two years.

This acceleration has pushed India into the upper tier of Vietnam’s source markets. Official statistics for 2024 identify India as Vietnam’s sixth largest inbound market by visitor volume, up from lower rankings in previous years, underscoring how quickly demand from the world’s most populous country is scaling up.

Monthly bulletins from Vietnamese tourism authorities also highlight India among the top ten feeder markets in 2024, alongside traditional Northeast Asian and Western markets. The trend is widely interpreted by analysts as evidence that India is no longer a niche source but a core pillar of Vietnam’s inbound growth strategy.

While India still trails leading markets such as South Korea and China in absolute numbers, the growth rate from the Indian market has outpaced many established sources, drawing attention from airlines, hotel operators and destination marketers across the region.

Thailand’s Visa-Free Push Raises the Competitive Stakes

Thailand remains the most popular Southeast Asian destination for Indian holidaymakers, supported by long-standing familiarity, extensive air connectivity and an expansive hospitality sector tailored to Indian tastes. In recent years, Bangkok has moved to cement that position through increasingly liberal entry rules for Indian nationals.

A temporary 30 day visa exemption for Indian passport holders was first rolled out between late 2023 and mid 2024, and was subsequently extended. By mid 2024, Thai authorities had shifted to a broader 60 day visa exemption scheme covering dozens of nationalities, with India included among them. Indian travelers can now enter Thailand without a visa for up to 60 days and may extend their stay further by applying in country.

Coverage in Indian and Thai media during late 2024 and 2025 indicates that the visa free arrangement for Indians has effectively become open ended rather than a short term promotion. Travel advisories and consular notices describe Indian citizens as eligible for ongoing visa free tourist visits, a move widely seen as an explicit bid to lock in India’s fast expanding outbound market.

For Vietnam, this shift has raised the competitive stakes. Industry observers note that Thailand’s liberal visa regime, combined with strong brand recognition among Indian travelers, sets a high bar for neighboring destinations that hope to capture a greater share of India’s tourism spending.

Vietnam Relies on E Visas While Eyeing Further Liberalization

In contrast to Thailand’s visa free model, Vietnam currently requires Indian visitors to obtain an electronic visa or a conventional visa prior to arrival. Under the e visa system, Indian citizens can apply online for a stay of up to 90 days, with the option for multiple entry, provided they meet basic eligibility criteria and hold a passport valid for at least six months.

The e visa scheme has been repeatedly expanded and simplified since 2023, and travel industry reports suggest that processing has become more predictable and user friendly. Tour operators serving the Indian market often promote the Vietnamese e visa as straightforward, particularly for tech savvy urban travelers accustomed to digital applications.

Vietnamese policymakers have signaled interest in going further. In late 2023, proposals surfaced to abolish visa requirements for citizens of several key markets including India and China. In July 2024, the Prime Minister publicly instructed relevant ministries to develop plans to expand the list of visa exemption countries, and India is regularly mentioned in local commentary as a priority candidate.

Although a formal visa waiver for Indian tourists has yet to be enacted, the direction of policy appears to favor gradual liberalization. Tourism analysts in Hanoi and Ho Chi Minh City note that aligning Vietnam’s entry regime more closely with Thailand’s would likely accelerate Indian arrivals and narrow the competitive gap.

Air Connectivity and Product Positioning Drive Momentum

Improved direct air connectivity has played a critical role in Vietnam’s appeal to Indian travelers. Since mid 2022, Vietnamese and Indian carriers have launched a series of non stop routes linking major Indian cities such as New Delhi and Mumbai with Hanoi and Ho Chi Minh City, reducing flight times to around four to five hours. Additional services have connected secondary Indian cities with coastal hubs like Da Nang and Nha Trang.

Vietnamese tourism bulletins highlight that national carrier Vietnam Airlines alone transported more than 240,000 passengers on India routes in the first two years after launching direct services. Low cost airlines from both countries have added capacity, often targeting leisure and group traffic that traditionally flowed to Thailand.

Destination marketing has evolved in parallel. Campaigns in the Indian market increasingly present Vietnam as a compact multi city experience that combines historic sites, beach resorts and urban nightlife within a relatively short trip. Coastal destinations such as Phu Quoc and Da Nang are often promoted as alternatives to Phuket or Krabi, while Hanoi and Ho Chi Minh City compete with Bangkok as short break city options.

Industry reports also point to rising demand from Indian wedding, incentive and corporate groups. Vietnamese economic bulletins have cited large Indian companies chartering flights and booking entire resorts for employee incentive trips, reinforcing the perception that Vietnam is gaining traction in segments once dominated by Thailand.

Regional Competition for India’s Outbound Market Intensifies

The rapid expansion of India’s middle class and the easing of post pandemic travel constraints have triggered fierce competition among Southeast Asian countries for Indian tourists. Thailand, Vietnam, Singapore, Malaysia and Indonesia are all tailoring policy and marketing to capture more visitors and higher spending from India.

Thailand has leaned heavily on visa free stays and extensive low cost air connectivity, coupled with a long established reputation among Indian travelers. Vietnam has focused on rapid capacity growth, digital visa reforms and targeted campaigns that position the country as a newer, less saturated alternative that offers value for money and diverse experiences.

Analysts note that Vietnam’s relatively late start in the Indian market may now be working to its advantage. The novelty factor, rapidly improving infrastructure and the perception of being less crowded than some Thai resorts are cited by travel agents as selling points, particularly for younger Indian travelers and first time international tourists from smaller cities.

At the same time, Thailand’s entrenched popularity and its now liberal visa regime mean it remains the benchmark. For Vietnam to further challenge Thailand’s dominance among Indian tourists, observers argue that progress on visa exemptions, continued expansion of direct flights and sustained promotion in tier two and tier three Indian cities will be critical in the coming years.