Thailand’s tourism industry may soon lose its top spot in Southeast Asia as Vietnam continues to grow rapidly. In March 2025, Vietnam saw a 50% rise in foreign visitors compared to the time before the COVID-19 pandemic. In contrast, Thailand’s growth was much slower.
Vietnam Sets Ambitious Tourism Goal
Vietnam is aiming to welcome 23 million foreign visitors this year. Meanwhile, Thailand’s Finance Ministry has lowered its own forecast from 38.5 million to 36.5 million tourists. This has raised concerns among Thai tourism officials.
Thanet Supornsahasrungsi, President of the Chon Buri Tourism Federation, said Vietnam may soon overtake Thailand. He believes it could happen in just two or three years if current trends continue.
March Numbers Show a Growing Gap
In March 2025, Thailand welcomed 2.7 million foreign tourists. That is still 20% below the number in March 2019, before the pandemic. On the other hand, Vietnam attracted more than 2 million tourists during the same month. That’s a 40% increase compared to March 2019.
Experts say Vietnam’s lower costs are attracting more visitors. Hotels, meals, and services are cheaper there. Family-friendly resorts and theme parks in Vietnam are newer and more affordable than similar places in Thailand.
Vietnam Offers Better Deals for Travel Agents
Thanet said Vietnam is also helping travel agents from other countries. The government offers subsidies for air travel and lower landing fees at airports. This has made it easier for agents to choose Vietnamese cities like Nha Trang instead of popular Thai spots like Phuket.
Many of Vietnam’s airports are closer to tourist areas. Large airports in cities like Ho Chi Minh City or Da Nang are only 30 to 45 minutes away from popular destinations. This is not the case in Thailand. Tourists flying into Bangkok must travel more than three hours by car to reach places like Hua Hin or Kanchanaburi.
Thai Officials Call for Government Action
Thanet warned that if the Thai government does not improve its tourism strategy, it will be hard to meet the goal of 36.5 million visitors. He also urged the government to improve tourist safety to stay competitive.
Sanga Ruangwattanakul, President of the Khao San Road Business Association, agreed. He said Bangkok might see fewer tourists this year. One reason is the drop in visitors from China. Many Chinese tourists are now choosing Vietnam and other new destinations instead.
Industry Group Proposes Plan to Boost Chinese Tourism
To address this issue, the Association of Thai Travel Agents (ATTA) has submitted a proposal. They asked the Tourism Authority of Thailand and the government for a 320 million baht (about US$9.7 million) subsidy. The goal is to bring in more Chinese tourists.
ATTA believes this plan could generate at least 8.3 billion baht in tourism revenue. This is based on an average spending of 55,869 baht per Chinese tourist. The plan aims to attract 150,000 tourists from China.
The proposal suggests a joint investment model. The private sector would cover 80% of the cost. The government would only pay if a flight brings at least 150 Chinese tourists. In that case, the travel company would receive a 300,000 baht subsidy.
Vietnam’s Rise: A Wake-Up Call for Thailand
Thailand’s tourism sector was once the strongest in the region. However, Vietnam is now becoming a serious competitor. With better infrastructure, cheaper packages, and stronger support for travel agents, Vietnam is quickly catching up.
Experts say Thailand must act fast. Improving transport access, supporting tourism businesses, and offering competitive packages are key. Without these changes, Vietnam could become the new leader in Southeast Asian tourism.
