Why Indian Tourists Are Pivoting From Thailand And Bali To Vietnam

Vietnam is emerging as a powerful new favorite for Indian holidaymakers, increasingly competing with long-established favorites such as Thailand and Bali as visa rules, air links and traveler tastes shift across Asia.

Surging Indian Arrivals Put Vietnam On The Map

Tourism data released by Vietnamese authorities show that India has become one of the country’s fastest growing source markets, with arrival numbers multiplying over the last few years. Official statistics indicate that Indian visitor arrivals rose from around 138,000 in 2022 to nearly 400,000 in 2023, and then passed the half‑million mark in 2024. The pace of growth, rather than the absolute volume, is drawing attention across the region.

This boom has helped diversify Vietnam’s inbound tourism, which historically depended heavily on nearby markets such as China, South Korea and Japan. Industry analyses describe India as one of the few markets where arrivals now exceed pre‑pandemic levels by a wide margin, helping to offset slower recoveries elsewhere in Asia. That shift has encouraged both Vietnamese destinations and Indian travel companies to invest more heavily in routes, marketing and tailored packages.

Despite this strong growth, Thailand still receives far more Indian visitors in total, and Bali remains a coveted beach destination. However, analysts note that Vietnam’s share of Indian outbound travel is climbing from a low base, and that the country is now consistently featured alongside Thailand and Indonesia in searches and itineraries. The trajectory suggests that Vietnam is rapidly moving from a “second choice” to a primary option for many Indian travelers.

Travel industry observers say this momentum is particularly visible among younger Indian tourists and first‑time international travelers, who are more willing to try a new country when prices are competitive and access is straightforward. Vietnam’s growing visibility on social media and in Bollywood productions has reinforced that appeal.

Longer, Simpler Stays With Vietnam’s E‑Visa Advantage

One of the clearest structural shifts in favor of Vietnam has come from visa policy. Since August 2023, Vietnam has offered a streamlined electronic visa to citizens of all countries and territories, including India, with stays permitted for up to 90 days on a single or multiple entry basis. For many Indian visitors, this means they can plan longer holidays, slow‑travel itineraries or combined work and leisure trips without complex paperwork.

By contrast, Thailand and Indonesia have generally limited short‑term tourism stays. Thailand introduced and then extended a temporary visa‑free scheme for Indian visitors, initially allowing 30 days and later moving to stays of up to 60 days, but the measure has been time‑bound and subject to periodic reviews. Indonesia typically grants Indian tourists a shorter visa‑on‑arrival permit, often around 30 days, with extensions involving additional procedures and cost.

For cost‑conscious Indian travelers planning multi‑destination or long‑duration trips, a 90‑day e‑visa that can be obtained online ahead of time can significantly simplify planning. Travel agents in India report that this flexibility makes Vietnam particularly attractive to remote workers, students on break and families who want to combine multiple cities such as Hanoi, Da Nang and Ho Chi Minh City in a single visit.

Visa policy is not the only factor at play, but the perception that Vietnam offers a more predictable and generous stay period has become a notable selling point. As Indian outbound travel becomes more frequent and more independent, ease of entry and clarity on length of stay are becoming as important as airfares or resort deals when travelers compare destinations.

Direct Flights And Low‑Cost Fares Reshape Regional Choices

Growing air connectivity between India and Vietnam is another critical reason behind the shift. In recent years, Vietnamese low‑cost carriers and Indian airlines have steadily expanded direct routes linking major Indian cities to Hanoi, Ho Chi Minh City and the central resort hub of Da Nang. Vietjet now operates multiple non‑stop services from cities such as New Delhi, Mumbai, Ahmedabad and Kochi, while Air India launched direct flights between Delhi and Ho Chi Minh City in 2024 and has since increased capacity.

This network gives Indian travelers a choice of several point‑to‑point routes into Vietnam, often at promotional fares that undercut or match tickets to Thailand and Bali, especially outside peak holiday periods. For travelers from western and southern India, new connections into Da Nang in particular reduce overall journey times and make central Vietnam’s beaches and heritage towns far more accessible than in the past.

Thailand and Indonesia still benefit from a much denser web of flights from India, including full‑service and low‑cost options to Bangkok, Phuket and Bali. Yet the narrowing gap in frequency and pricing has changed how travelers shop for tickets. With more search engines now returning Vietnam alongside Bangkok or Denpasar for similar dates and prices, Indian travelers are more likely to weigh the relative value of a Vietnamese itinerary against the traditional beach breaks they already know.

Analysts note that budget carriers have also been crucial in opening Vietnam to smaller Indian cities beyond the usual metropolitan hubs. Connecting itineraries via Delhi or Mumbai now allow travelers from tier‑two cities to reach Vietnamese resorts with only one stop, widening the potential customer base.

Value For Money And A Different Kind Of Beach Holiday

Price comparisons are a major factor behind Vietnam’s rising popularity. Travel cost trackers and booking platforms show that average hotel rates in many Vietnamese destinations remain lower than in comparable Thai or Indonesian resorts, especially during India’s peak holiday seasons. Mid‑range hotels and homestays in cities such as Da Nang, Hoi An and Nha Trang often offer competitive nightly rates, while food and in‑country transport remain relatively affordable.

Indian travelers frequently report that they can secure sea‑view stays, rooftop pools and centrally located accommodation in Vietnam at prices that would buy more modest rooms in heavily touristed parts of Phuket or Bali. Package tours sold in India increasingly highlight these savings, bundling direct flights with three or four‑star properties and guided excursions at price points targeted at young professionals and middle‑income families.

Beyond cost, Vietnam offers a somewhat different style of beach holiday from Thailand and Bali. Coastal cities such as Da Nang and Nha Trang are framed not just by beaches but also by nearby mountains, historic towns and river landscapes, making it easy to combine sightseeing with relaxation. For Indian travelers who may have already visited Thai resorts several times, the mix of French‑influenced architecture, local street food culture and new theme parks provides novelty without a steep learning curve.

Travel trends also show a growing interest in multi‑city itineraries in Vietnam, pairing beach time with cultural hubs like Hanoi or heritage destinations such as Hue and Hoi An. This approach appeals to groups and families looking to balance relaxation with museums, temples and scenic train rides, rather than spending an entire week in a single resort area.

Cultural Curiosity, Food And The Search For “New” Asia

A final driver behind Vietnam’s emergence as a rival to Thailand and Bali is changing traveler psychology. As outbound tourism from India matures, more travelers are seeking destinations that feel both accessible and fresh. Published analyses of card transaction data and booking patterns across Asia describe a broader shift toward “new corridors,” with Vietnam increasingly appearing alongside established hot spots in itineraries and spending flows.

Vietnam’s food culture, coffee scene and historic cityscapes have become a major part of its appeal for Indian travelers active on social media. Influencers and vloggers showcase street food tours in Hanoi, lantern‑lit evenings in Hoi An and motorbike rides through Ho Chi Minh City, presenting Vietnam as a place where visitors can experience a dense urban culture and natural scenery within a single trip.

At the same time, Vietnam’s Buddhist pagodas, coastal temples and riverfront shrines offer some cultural familiarity to Indian visitors while still feeling distinct from the temples of Bangkok or Bali. Travel companies have started designing itineraries around vegetarian‑friendly food options, coffee tastings and heritage walks, responding to Indian travelers who want more than nightlife or beach clubs.

Industry reports suggest that this desire for “new Asia” is not replacing Thailand and Bali but rather broadening the shortlist for Indian travelers. With a favorable e‑visa regime, more direct flights and a perception of strong value for money, Vietnam is increasingly the destination that tips the balance when Indians decide where to go next.