Vietnam's Rising Tourism Sector: A Strategic Opportunity as It Surpasses Thailand

Vietnam's tourism sector is emerging as a formidable force in Southeast Asia, outpacing Thailand in post-pandemic recovery and positioning itself as a prime destination for investment. With a combination of strategic visa reforms, infrastructure modernization, and a surge in Chinese tourist inflows, Vietnam is not only rebounding but setting the stage for sustained economic growth. For investors, the opportunities in hospitality, travel technology, and regional infrastructure are becoming increasingly compelling.

Post-Pandemic Recovery: A Policy-Driven Rebound

Vietnam's tourism recovery has been anchored by aggressive policy reforms aimed at simplifying access for international visitors. In August 2023, the country extended e-visa validity to 90 days and introduced unilateral visa exemptions for citizens of 12 countries, including Poland, the Czech Republic, and Switzerland, allowing stays of up to 45 daysVisit Vietnam: The Official Tourism Website of Vietnam^[2]. These measures, paired with a broader economic growth rate of 6.5% in 2024Visit Vietnam: The Official Tourism Website of Vietnam^[2], signal a robust foundation for tourism-driven recovery. While Thailand has similarly relaxed travel restrictions, Vietnam's streamlined approach—coupled with its lower cost of living and rising global brand recognition—has created a competitive edgeVisit Vietnam: The Official Tourism Website of Vietnam^[2].

The economic implications are clear: Vietnam's GDP (PPP) is projected to reach $1.786 trillion in 2025Vietnam - Wikipedia^[1], with tourism and hospitality sectors poised to contribute significantly. This growth is underpinned by the country's transition to a market-oriented economy since the 1986 Đổi Mới reforms, which prioritized sustainable development and foreign investmentVisit Vietnam: The Official Tourism Website of Vietnam^[2].

Chinese Tourist Inflows: A Catalyst for Growth

Vietnam's unilateral visa exemptions and e-visa extensions have particularly resonated with Chinese tourists, a demographic critical to Southeast Asia's tourism economy. While exact figures for 2023–2025 are not yet available, the policy changes have already spurred a noticeable increase in Chinese visitors to cities like Hanoi, Ho Chi Minh City, and Da NangAbout Vietnam^[4]. This trend is expected to accelerate as Vietnam's cultural and natural attractions—ranging from UNESCO-listed heritage sites to Michelin-rated cuisine—gain global tractionVisit Vietnam: The Official Tourism Website of Vietnam^[2].

Chinese tourists, known for their high spending on luxury accommodations, retail, and dining, are a key driver for Vietnam's hospitality sector. For investors, this demographic represents a dual opportunity: expanding hotel and resort capacity while developing travel tech platforms to manage the surge in demand.

Infrastructure Development: Building for the Future

Vietnam's infrastructure investments are further solidifying its appeal. The government has prioritized transportation upgrades, including expanded airports, high-speed rail projects, and improved road networks, to accommodate growing tourist numbersAbout Vietnam^[4]. These developments not only enhance visitor experiences but also create long-term value for investors in construction, logistics, and smart city technologies.

In contrast, Thailand's tourism recovery has been hampered by political instability and aging infrastructure in key destinations like Phuket and BangkokVisit Vietnam: The Official Tourism Website of Vietnam^[2]. While Thailand remains a popular destination, Vietnam's proactive approach to modernization is narrowing the gap—and in some cases, overtaking its neighbor in terms of visitor satisfaction and economic returns.

Investment Opportunities: Where to Focus Now

The convergence of policy tailwinds, rising tourist demand, and infrastructure momentum points to three high-impact investment areas:

1. Hospitality and Real Estate: With Chinese and global tourists flocking to Vietnam, there is urgent demand for mid-to-luxury hotels, serviced apartments, and mixed-use developments in gateway cities and emerging destinations like Nha Trang and Ha Long Bay.
2. Travel Technology: Platforms offering seamless visa processing, localized tour bookings, and AI-driven customer service are critical to managing the influx of visitors. Startups and established firms with digital solutions will benefit from Vietnam's tech-savvy population and government support for innovation.
3. Regional Infrastructure: High-speed rail links, airport expansions, and eco-tourism projects in rural areas present opportunities for long-term, capital-intensive investments. These projects align with Vietnam's goal of becoming a top-three tourism destination in Southeast Asia by 2030Visit Vietnam: The Official Tourism Website of Vietnam^[2].

Conclusion: A Window of Opportunity

Vietnam's tourism sector is not just rebounding—it is redefining its role in the global economy. By leveraging visa liberalization, infrastructure upgrades, and a strategic focus on high-spending markets like China, the country is creating a self-reinforcing cycle of growth. For investors, the time to act is now. The risks are minimal given Vietnam's political stability and economic resilience, while the rewards—spanning hospitality, technology, and infrastructure—are substantial.

As the world shifts toward experiential travel and sustainable tourism, Vietnam's blend of cultural richness, natural beauty, and policy agility positions it as a clear winner. Thailand may have pioneered Southeast Asia's tourism boom, but Vietnam is now leading the next chapter.