Vietnam Tourism Surges as Indian Arrivals Challenge Thailand

Vietnam is rapidly climbing the shortlist of preferred overseas destinations for Indian travelers, as rapidly rising visitor numbers, new flight connections and favorable visa rules begin to challenge Thailand’s long-held dominance in the segment.

Indian Arrivals to Vietnam Post Record Growth

Public data from Vietnam’s tourism authorities shows that arrivals from India have expanded at one of the fastest rates among all source markets. Indian visitor numbers rose from about 138,000 in 2022 to nearly 392,000 in 2023 and then exceeded 500,000 in 2024, marking roughly a 2.6-fold increase in just two years. India has now entered the ranks of Vietnam’s top ten tourism source markets, a significant shift for a destination that only recently began targeting South Asia in a systematic way.

The strong momentum continued through late 2024, when India ranked among the leading markets contributing to Vietnam’s total of more than 17.5 million international arrivals. Sector updates describe India as one of the most dynamic contributors to Vietnam’s post pandemic recovery, alongside traditional Northeast Asian markets such as South Korea, China and Taiwan.

Although Indian visitors currently represent a single digit share of total arrivals, analysts note that the rapid percentage growth is drawing attention across the region. Industry commentary points out that Vietnam has moved from being a niche choice for Indian holidaymakers to a mainstream option, particularly for first time international travelers from major cities and emerging secondary markets in India.

Officials in charge of tourism strategy have repeatedly highlighted India’s expanding middle class, rising disposable incomes and growing appetite for short haul international breaks as structural drivers that are expected to sustain demand in the coming years.

Thailand Still Leads, but the Gap Is Narrowing

Thailand remains the most popular Southeast Asian destination for Indian tourists in absolute numbers, supported by decades of marketing, a large Indian diaspora and a dense network of non stop flights. Recent reporting on regional travel trends indicates that Thailand welcomed around 2 million Indian visitors in 2024, roughly four times Vietnam’s total. Thailand’s visa free entry for Indian passport holders and the option of stays of up to 60 days have long given it a clear advantage.

However, comparative data suggests that while Thailand’s Indian arrivals are growing from a high base, Vietnam is expanding at a much faster rate. By late 2024 India had become one of Vietnam’s top eight markets, while Thailand, in contrast, has seen some fluctuations in its own inbound numbers from India in the wake of changing airline capacity and shifting travel preferences among younger Indian tourists.

Regional economic and travel analyses also show that Indian outbound demand is diversifying beyond familiar hubs. Locations such as Vietnam, Indonesia and Japan have increased their share of Indian travelers since 2019, reflecting an appetite for new experiences and destinations perceived as good value. Against that backdrop, tourism commentators increasingly frame the competition for India’s booming market as a race in which Vietnam has emerged as Thailand’s most serious challenger in mainland Southeast Asia.

Market observers add that Thailand is responding through its own promotional campaigns and air service agreements, suggesting that the rivalry for Indian arrivals is likely to intensify across the medium term.

Visas, Air Connectivity and Value Drive Vietnam’s Appeal

Policy shifts in Vietnam have played a central role in reshaping the travel landscape for Indian tourists. Vietnam introduced convenient electronic visas and simplified entry procedures for many markets, a move that has been widely cited in trade press as lowering barriers for first time visitors. Travel agencies serving Indian clients emphasize that the ability to obtain an e visa without extensive paperwork has made Vietnam a more practical alternative to destinations that still require in person consular applications.

At the same time, airlines across India and Southeast Asia have opened or restored multiple direct and one stop connections linking Indian metros to Vietnamese gateways such as Hanoi, Ho Chi Minh City and Da Nang. Low cost carriers have particularly increased capacity on routes from Delhi, Mumbai and key cities in southern India, allowing packages that combine airfare and accommodation at price points similar to or lower than comparable trips to Thailand.

Price competitiveness has become another defining factor. Industry surveys and booking data referenced by regional tourism organizations indicate that hotel rates, dining costs and on ground services in Vietnam often undercut equivalent offerings in some rival destinations, even in peak seasons. For Indian travelers traveling in family groups or on multi city itineraries, this cost advantage can be decisive in choosing Vietnam over Thailand or other locations.

The combination of relaxed entry rules, expanding seat capacity and relatively affordable experiences is widely regarded as the core engine behind Vietnam’s surge in the Indian market.

Experiential Travel and New Itineraries for Indian Visitors

Beyond logistics and pricing, Vietnam’s tourism authorities and private sector partners have focused on tailoring products to Indian tastes. Tour operators have expanded offerings that blend cultural sightseeing in Hanoi and Ho Chi Minh City with beach stays in Da Nang, Nha Trang or Phu Quoc, as well as cruise style excursions through Ha Long Bay. Many packages highlight vegetarian and Indian cuisine options, wedding and honeymoon facilities, and shopping experiences that appeal to Indian travelers.

Industry reports describe a noticeable shift toward experiential travel among Indian visitors, echoing broader global trends. Younger tourists in particular are seeking activities such as trekking in the northern highlands, cave exploration in central provinces and culinary tours that showcase Vietnamese street food. Several travel trade features note that repeat Indian visitors are venturing beyond classic circuits to lesser known destinations, signaling a maturing market.

Vietnam is also positioning itself as a venue for large scale Indian weddings, corporate incentives and film shoots. Local tourism boards and hospitality groups have launched promotional campaigns aimed at event planners in India, emphasizing high capacity resorts, scenic backdrops and relatively permissive event regulations compared with some competitors. While this segment remains small, stakeholders view it as a high value niche that can further raise Vietnam’s profile.

These developments mirror trends seen earlier in Thailand, where Indian destination weddings and incentive trips became significant revenue drivers. Analysts argue that Vietnam’s rapid embrace of similar segments underscores how closely it is tracking Thailand’s playbook while attempting to differentiate with new locations and experiences.

Regional Competition Sets the Stage for the Next Phase

The growing importance of Indian travelers is reshaping tourism strategies across Southeast Asia. Besides Thailand and Vietnam, destinations such as Singapore, Malaysia and Indonesia are also intensifying outreach in India through roadshows, joint promotions with airlines and digital marketing campaigns. Some policy discussions in the region have floated ideas such as harmonized visa regimes or multi destination packages that would allow Indian tourists to visit several countries on a single trip.

Analysts note that in this competitive environment, sustaining growth will require Vietnam to maintain service quality, manage congestion at popular sites and expand tourism infrastructure beyond major cities. Transport capacity to secondary destinations, language support and standardized service levels are cited as areas that could influence visitor satisfaction and repeat travel among Indians.

Thailand, for its part, retains significant advantages in brand recognition and tourism experience but is facing more direct competition than in previous decades. With India’s outbound market still in an expansion phase, many observers view the contest not as a zero sum game but as a race to capture a larger share of a rapidly growing pie.

For now, available data suggests that Vietnam has secured a firm foothold among Indian travelers and is moving rapidly up their list of preferred international destinations. The coming seasons will test how far this momentum can carry the country in its bid to challenge Thailand’s long established role as India’s favorite Southeast Asian getaway.