Vietnam: An Emerging Tourism Advantage over Thailand
LuxGroup’s Chairman and CEO Pham Ha speaks to BBC Vietnamese
On the Southeast Asian tourism map, Thailand has long been considered a “powerhouse,” welcoming more than 39 million international visitors before the pandemic. Yet, the post-COVID period has witnessed a remarkable shift: Vietnam has become the fastest-recovering country in the region, even outpacing Thailand’s growth momentum. By 2024, Vietnam welcomed over 17.6 million international visitors, reaching 98% of its pre-pandemic level, while Thailand managed only about 87.5%.
Cultural Diplomacy and a Friendly Image
One key driver behind Vietnam’s breakthrough is “soft diplomacy” through everyday images. International leaders strolling around Hoan Kiem Lake, enjoying street food, or dining simply at small restaurants in Hanoi have repeatedly made global headlines.
From former U.S. President Barack Obama enjoying bún chả to Asian politicians walking through Hanoi’s Old Quarter, such moments have acted as powerful “free advertising,” positioning Vietnam as a safe, welcoming, and authentic destination that inspires visitor confidence.
Cinema, Cannes, and European Promotion
Beyond cuisine and scenery, cinema and the arts are increasingly shaping Vietnam’s tourism promotion. Ha Long Bay, Hoi An Ancient Town, and Hue Imperial City have featured in international films, bringing Vietnam’s landscapes closer to global audiences.
At the Cannes Film Festival, not only films but also the images of Hue, Hanoi, and Ho Chi Minh City have been introduced as heritage-rich destinations. Similarly, events such as “Vietnam Days in France and Germany” have strengthened cultural and tourism links with Europe. This heritage-driven strategy sets Vietnam apart from Thailand, which excels in entertainment but has yet to fully leverage cultural heritage and history in tourism promotion.
Vietnam’s Competitive Edge
Compared with Thailand, Vietnam holds several advantages:
• Affordable costs: Spending in Vietnam is 20–30% lower than in Thailand, while service quality remains comparable.
• Rich heritage: With nine UNESCO World Heritage Sites, Vietnam ranks just behind Indonesia in the region.
• Sense of novelty: While Thailand is sometimes seen as saturated, many of Vietnam’s destinations retain a pristine charm that appeals to explorers.
• Visa & air connectivity: The e-visa policy for 80 countries and growing direct flights to Australia, India, and Europe reduce reliance on transit hubs like Bangkok.
Why Vietnam Recovered Faster than Thailand
Four factors explain Vietnam’s rapid recovery:
1. Lower starting point – before COVID, Vietnam received only half the number of visitors Thailand did, leaving more room for growth.
2. Timely stimulus – festivals such as the Da Nang Fireworks Festival, Nha Trang beach season, and Hanoi’s food weeks created steady momentum.
3. High value, low cost – in times of global inflation, Vietnam offered “more for less.”
4. Soft diplomacy – from world leaders dining in Hanoi to Vietnamese films at Cannes, cultural moments reinforced trust and curiosity.
Government Leadership
According to Dr. Pham Ha, a decisive factor is the government’s strong commitment. The Prime Minister has repeatedly emphasized tourism as a spearhead industry, instructing ministries and provinces to capitalize on post-pandemic opportunities and transform tourism into a growth engine.
“The vision is not just about direct revenue from visitors, but about spillover effects for aviation, retail, agriculture, handicrafts—the entire value chain of the national economy,” Dr. Ha noted.
The government has set an ambitious goal: by 2026, tourism should contribute to GDP growth in the double digits.
Outlook and Challenges
Vietnam aims to attract 22–23 million international visitors in 2025, generating revenues between 980 trillion and 1.05 quadrillion VND. However, challenges remain: overloaded airports, environmental pressures at hotspots, and uneven service quality.
To achieve sustainable growth, Vietnam must simultaneously invest in infrastructure, tighten heritage management, and enhance service standards. These are essential conditions to become the region’s new tourism hub.
Conclusion
While Thailand remains a familiar destination, Vietnam is emerging as Asia’s new tourism star. The combination of affordability, heritage richness, flexible visa policies, direct air connectivity, and cultural soft power has enabled Vietnam to recover faster.
With decisive government leadership and businesses aligning with sustainable development, Vietnam is not only catching up but positioning itself as a direct competitor to Thailand on the global tourism stage.
Dr. Pham Ha
Chairman & CEO of LuxGroup, Vice Chairman of the Vietnam Green Tourism Association.
With 30 years of expertise, he has pioneered luxury heritage tourism in Vietnam, aligning with ESG standards. Under his leadership, LuxGroup became Travelife Certified and aims for a Net Positive Impact by 2030. His vision goes beyond economic value, integrating cultural preservation, environmental stewardship, and enriched visitor experiences.
