Is Vietnam catching up with Thailand as Southeast Asia’s tourism powerhouse?

Thailand, once the clear leader in Southeast Asia's tourism industry, is now facing a growing threat from Vietnam, which is rapidly closing the gap in international visitor numbers. In 2019, Thailand attracted 39.9 million foreign tourists, while Vietnam welcomed just 18 million. By 2025, Thailand's tourist arrivals had dropped to about 33 million, while Vietnam's had risen to 21.2 million, narrowing the gap to 11.8 million.

The latest data shows the gap closing even further. During the first 10 months of 2026, Thailand welcomed 25.4 million foreign tourists, while Vietnam saw 19.5 million, a difference of just 5.9 million.

This narrowing gap has raised concerns among Thai tourism operators, with 59.1% of them surveyed by the University of the Thai Chamber of Commerce (UTCC) believing Thailand is now less competitive than its Asian peers. Thanavath Phonvichai, president of UTCC, noted that tourism remains a key driver of Thailand's economy, but the industry is now facing significant challenges as neighboring countries, particularly Vietnam, are attracting a larger share of international visitors.

Vietnam's growing competitiveness is evident in several areas. The country has introduced new tourist attractions and offers travel costs and expenses perceived as better value for money. Vietnam's network of direct international flights has expanded, providing a more convenient travel experience for visitors. Moreover, Thailand's reliance on connecting flights through Middle Eastern hubs, as opposed to direct flights, is putting it at a disadvantage.

Vietnam's strong performance is particularly notable in the Russian market. In the first nine months of 2026, Vietnam welcomed 1.13 million Russian tourists, a 160.6% increase from the 430,000 Russian visitors in the same period a year earlier. Thailand, in contrast, saw a negligible increase of 1.27 million Russian tourists during the same period.