Vietnam’s Tourism: Record Growth and Key Challenges

Vietnam has emerged as Southeast Asia’s top performer in tourism recovery, according to Bloomberg. In 2024, the country welcomed 17.5 million international visitors, overtaking Singapore and ranking third in the region after Thailand (35 million) and Malaysia (25 million).

Leading Source Markets: China and South Korea

Vietnam has recovered 98% of its pre-pandemic tourist volume, the highest recovery rate in the region. In contrast, Thailand has restored 87.5% and Singapore 86%. In early 2025 alone, Vietnam saw a 30.2% year-on-year increase in international arrivals, reaching over 6 million visitors in Q1 – a 134% rise above 2019 levels.

China topped the arrivals list with 1.58 million tourists (+78.3%), followed by South Korea with 1.26 million (+2.2%). Together, these two countries contributed nearly half of all inbound tourism. Other significant contributors include Taiwan, the U.S., Japan, Australia, and India, with growth ranging from 10% to 26%. Russian arrivals surged by 110.5% compared to early 2024.

Drivers of Growth

Key factors behind this success include:
- Direct long-haul flights (e.g., San Francisco–Ho Chi Minh City)
- Extended e-visa validity (up to 90 days)
- Visa exemptions for 12 countries, including Russia, Japan, Germany, France, South Korea, and Spain
- Luxury hotel expansions (e.g., Regent Phu Quoc, Capella Hanoi, JW Marriott Saigon)
- Michelin-starred restaurants boosting culinary tourism

The Vietnamese government is also implementing a national tourism strategy aimed at sustainable development through 2030. The plan focuses on marine, eco, and digital tourism, targeting 35 million annual visitors and aiming for the sector to contribute 13–14% of GDP.

Ongoing Challenges

Despite impressive recovery, Vietnam faces structural issues:
- Low return-visitor rate (10–15%)
- Inadequate service infrastructure and digitalization
- Tourist complaints about transport, cleanliness, and professionalism
- Unlicensed tours and guides
- Environmental degradation, especially plastic waste in coastal zones
- Decline in Vietnam’s Travel & Tourism Development Index ranking by the World Economic Forum

To maintain growth, Vietnam must prioritize sustainability, improve tourist services, and modernize infrastructure.