Why Indian Tourists Are Pivoting From Thailand and Bali to Vietnam

Vietnam is emerging as one of the fastest rising destinations for Indian outbound travel, with recent tourism data and airline capacity pointing to a clear shift away from long-favoured favorites such as Thailand and Bali.

Surging Indian Arrivals Put Vietnam on the Map

Publicly available figures from Vietnam’s tourism authorities show how quickly India has become a key source market. Vietnam welcomed about 138,000 visitors from India in 2022, rising to nearly 392,000 in 2023. By 2024, that number had climbed to around 501,000 Indian arrivals, making India one of Vietnam’s top inbound markets and placing it alongside long-established Asian and Western source countries.

The pace of growth stands out when viewed against the broader regional landscape. While Thailand and Indonesia, including Bali, continue to draw large volumes of Indian holidaymakers, Vietnam’s jump in arrivals in just two years suggests many travelers are now distributing their trips more widely across Southeast Asia, rather than defaulting to the traditional hot spots.

Tourism analysts note that this shift is driven by a combination of affordability, novelty and policy reforms that have made it easier for Indian visitors to enter Vietnam and move around the country. As awareness grows through social media, word of mouth and travel-agency promotions, Vietnam is increasingly seen as a place that offers a similar tropical escape to Thailand and Bali, but with a different cultural and culinary flavor.

Visa Reforms and Simpler Entry Tilt the Scales

One of the most significant structural changes underpinning Vietnam’s rise with Indian travelers is the expansion of its electronic visa scheme. From August 2023, Vietnam extended the validity of its e-visa from 30 days to a maximum of 90 days, and allowed both single and multiple entries, provided visitors meet standard eligibility conditions. Official portals indicate that the e-visa is applied for and issued entirely online, removing much of the friction that once came with planning a multi-city or multi-country Southeast Asia trip.

For Indian tourists comparing options, this policy makes Vietnam more attractive for longer holidays and combined itineraries across the region. A 90-day, multiple-entry e-visa allows travelers to enter Vietnam, hop out to neighboring countries and return, or spend extended time working remotely while exploring cities such as Hanoi, Da Nang and Ho Chi Minh City. The online process and published turnaround times of a few working days also appeal to the growing segment of last-minute Indian travelers.

By contrast, visa rules for other popular destinations have been in flux in recent years, occasionally creating uncertainty on processing times or documentation requirements. In that context, Vietnam’s clear, digitally managed and relatively low-cost e-visa framework has become a competitive differentiator, particularly for price-conscious and first-time international travelers from India’s smaller cities.

Cheap Fares and New Direct Flights From Indian Cities

Air connectivity has expanded rapidly between India and Vietnam, further accelerating the trend. Route and schedule data show that low-cost carriers now operate multiple direct services linking major Indian metros to Vietnamese gateways such as Hanoi, Ho Chi Minh City and Da Nang. Some Vietnamese airlines have also added new routes from cities like Ahmedabad, increasing the total number of India–Vietnam routes and boosting weekly seat capacity.

These additional flights have helped push down average fares, especially outside of peak festival and school-holiday periods. Travel-industry tracking indicates that promotional return tickets from Indian hubs to Vietnam often undercut prices to Bali and sometimes rival budget fares to Thai beach destinations, even when booked relatively close to departure. For younger travelers and first-time flyers, these price points can be decisive.

The spread of routes beyond Delhi and Mumbai to tier-two cities makes Vietnam accessible to a wider swathe of Indian travelers. Tour operators report that customers who once defaulted to Bangkok, Phuket or Bali now increasingly ask about Ho Chi Minh City, Da Nang or Phu Quoc, drawn by the combination of short flight times, competitive fares and the perception of visiting somewhere still slightly under the mainstream radar.

Value for Money and a Fresh Coastal Alternative

On the ground, many Indian travelers are finding that their budgets stretch further in Vietnam compared with more established beach hubs. Hotel benchmarks compiled by global accommodation platforms show that mid-range and boutique properties in cities like Da Nang, Hoi An and Nha Trang can be significantly cheaper than equivalent stays in central Bali or on popular Thai islands during peak months.

Dining, transport and excursion costs tell a similar story. Street food culture, affordable ride-hailing and reasonably priced domestic flights make it possible to cover multiple regions of Vietnam on a modest budget. This value proposition resonates with Indian families and groups who want a beach holiday that also includes historic towns, mountain scenery and urban nightlife, without the premium that often attaches to heavily commercialized destinations.

At the same time, Vietnam offers landscapes and cityscapes that feel distinct from the well-trodden Thai and Balinese circuits. Heritage-rich Hoi An, the karst seascapes of Ha Long Bay, the terraced hills around Sa Pa and the rapidly developing coastal strip around Da Nang and Quy Nhon present a different visual identity in social-media feeds. For Indian travelers who have already visited Bangkok or Kuta, Vietnam provides the chance to post new backdrops and experiences that feel less repetitive.

Cuisine, Culture and the Social Media Effect

Cuisine has also become a major draw. Vietnamese food is increasingly visible in Indian cities, with new restaurants and cloud kitchens introducing pho, banh mi and fresh herb-based dishes to urban diners. When these travelers head to Vietnam, they are already primed to seek out local food experiences they recognize from home, from coffee chains in Ho Chi Minh City to street-side stalls in Hanoi’s Old Quarter.

Culturally, Vietnam delivers a mix of Buddhist temples, French-colonial architecture, war history sites and modern nightlife that plays well with Indian visitors looking for more than a resort stay. Museums, walking streets and night markets offer relatively low-cost entertainment that can be enjoyed by multigenerational families and groups of friends alike.

Social media has amplified these attractions. Indian influencers and everyday travelers are filling Instagram and short-video platforms with images of lantern-lit streets in Hoi An, cable cars over coastal mountains and rooftop cafes in Ho Chi Minh City. This user-generated content, combined with aggressive promotional campaigns by airlines and tourism boards, is steadily repositioning Vietnam in the Indian imagination from a niche, long-haul-type destination to a practical, near-neighbor holiday rival to Thailand and Bali.

As Indian outbound travel continues to expand, analysts expect Vietnam’s share of the market to grow further, especially among younger and more adventurous segments. With visa rules clarified, flight networks deepening and word of mouth gathering pace, Vietnam appears set to remain a prominent fixture on Indian travelers’ shortlists alongside, and increasingly in place of, the more familiar shores of Thailand and Bali.