But in a dramatic post-pandemic twist, Vietnam has emerged as the fastest-growing tourism hotspot in the region, shattering records and outpacing its rivals.
With a staggering 17.5 million international arrivals in 2024, Vietnam has overtaken Singapore and is now setting its sights on Malaysia and Thailand, both of which have traditionally dominated the industry.
The country’s momentum is unstoppable—nearly 4 million visitors arrived in the first two months of 2025 alone, marking an explosive 30.2% year-over-year increase.
But what’s behind this meteoric rise?
The answer lies in a perfect blend of strategic reforms, seamless accessibility, and an elevated luxury experience—turning Vietnam into an irresistible magnet for international travellers.
From Backpackers’ Paradise to Luxury Hotspot
Vietnam has long been a favourite among backpackers, known for its affordability, breathtaking landscapes, and vibrant street food culture.
But the country is no longer just a budget traveller’s haven—it’s now a premier destination for high-end tourism.
The hospitality industry has undergone a dramatic transformation.
Global luxury brands like Regent Phu Quoc, Capella Hanoi, and JW Marriott Saigon have redefined Vietnam’s hotel scene, while upcoming projects from Ritz-Carlton Reserve, the Luxury Collection, and Park Hyatt promise to take it even further.
But the real game-changer?
Vietnam’s rising status as a culinary powerhouse.
The expansion of the Michelin Guide in 2024 has put Vietnam on the map for food lovers, drawing high-spending tourists who might have previously chosen Thailand, Japan, or Singapore for their gourmet adventures.
Accessibility Without Barriers
Vietnam’s explosive tourism boom didn’t happen by chance—it was carefully engineered through smart policy shifts and strategic connectivity upgrades.
Before 2023, international visitors faced rigid visa restrictions, limiting their stay to just 30 days.
But in a landmark move, Vietnam introduced a 90-day e-visa system—three times the previous limit—making it one of the most traveller-friendly destinations in Asia.
Vietnam expanded its visa-free policy to France, Germany, Italy, Japan, Russia, South Korea, and Spain, removing one of the biggest friction points for tourists from these major markets.
And with more countries set to be added to the list, Vietnam’s accessibility continues to grow.
The launch of Vietnam Airlines’ first-ever nonstop flight from the US to Vietnam in 2021—connecting San Francisco to Ho Chi Minh City—was a game-changer.
The direct link eliminated layover hassles and positioned Vietnam as a prime alternative for American travellers who might have traditionally chosen Thailand or Japan.
Outpacing the Competition: The Post-Pandemic Race
While other countries in the region are still recovering, Vietnam has already bounced back to 98% of its pre-pandemic tourism levels—the highest recovery rate in Southeast Asia, trailed by Thailand at 87.5% recovery, and Singapore at 86% recovery.
This rapid rebound isn’t just about numbers—it’s a shift in regional tourism dynamics.
Thailand’s dominance is being challenged, Singapore’s exclusivity is being rivalled, and Malaysia’s visitor numbers are under pressure.
Vietnam has cracked the code: a perfect mix of accessibility, luxury, and cultural richness that appeals to both budget-conscious and high-end travellers.
With Thailand still leading Southeast Asia’s tourism rankings at 35 million arrivals in 2024, Vietnam isn’t the top dog—yet.
But with its record-breaking growth rate, aggressive expansion in luxury tourism, and bold visa policies, the race is closer than ever.
The real question isn’t if Vietnam will become the top destination in Southeast Asia—it’s when.
