Vietnam's 90 Day E-Visas Shakes Thailand's Tourism Industry

BANGKOK – For decades, Thailand has reigned supreme as the undisputed king of Southeast Asian tourism. From the bustling streets of Bangkok to the pristine beaches of Phuket, the “Land of Smiles” has been the default getaway for global travelers. However, a major shift is underway.

Vietnam is rapidly transforming from a rising star into a fierce economic challenger. Driven by aggressive marketing, modern infrastructure investments, and bold visa reforms, Vietnam is actively narrowing the gap with its neighbor. This sudden rise is putting significant pressure on Thailand to reinvent its playbook, protect its market share, and embrace a fully digital future.

The Changing Tide: Looking at the Numbers

The latest industry reports reveal a clear change in momentum between the two destinations. While Thailand still leads in total visitor volume, the growth rates tell a very different story.

Vietnam’s Historic High: Vietnam recorded an exceptional year, with international arrivals surging over 20% to reach a record 21.2 million visitors. This milestone puts the country well on track to chase its ambitious target of 25 million travelers.
Thailand’s Slowdown: Conversely, Thailand experienced a visible cooling period. Foreign arrivals dipped roughly 7.2% to 32.97 million, down from more than 35 million the previous year.
The Shrinking Gap: In 2019, Thailand welcomed more than double the number of tourists that Vietnam did. Today, that gap has narrowed dramatically, with Thailand drawing just under 1.5 times more visitors than its rapidly rising neighbor.

This data highlights a critical shift: travelers are actively seeking fresh options, and Vietnam is successfully capturing that demand.

Inside Vietnam’s Success Formula

Vietnam’s rapid growth is not accidental. It is the result of a coordinated national strategy combining policy updates with massive physical and digital developments.

1. Slashing Red Tape with Smart Visas

The biggest catalyst for Vietnam’s recent boom is its progressive approach to immigration. Realizing that travel friction deters tourists, the government rolled out a Strategic Dual Visa Policy. This initiative expands 45-day unilateral visa exemptions to a growing list of European nations—including Germany, France, Italy, and several Central European markets—while opening 90-day e-visas to travelers worldwide.

Vietnam has even launched special visa-free channels for high-net-worth individuals and scientists to capture the premium long-stay market.

2. A Massive Infrastructure Boom

Vietnam is addressing long-standing travel bottlenecks by heavily investing in domestic connectivity. The country is adding 12 new airports to its network, expanding its expressways, and planning advanced high-speed rail lines.

Furthermore, many of Vietnam’s major airports are located just 30 to 45 minutes from key holiday spots. In comparison, traveling to some of Thailand’s classic resort areas, like Hua Hin or Kanchanaburi, requires a multi-hour road trip from Bangkok.

3. Freshness and a Strong Value Proposition

For repeat travelers, Vietnam offers something crucial: novelty. Destinations like Phu Quoc Island, Da Nang, and the misty hills of Sa Pa provide a sense of pristine discovery. Combined with affordable high-end resorts, Michelin-starred dining, and a lower overall cost of living, Vietnam often costs half as much as a comparable trip to Thailand.

Why Thailand is Feeling the Heat

The impact of Vietnam’s aggressive marketing is already echoing through Thailand’s private sector. According to reports from the Bangkok Post, Thai hotel operators are seeing a noticeable decline in group bookings from Europe, particularly from emerging markets like Poland, as budget-conscious vacationers pivot to Vietnamese shores.

Even the highly competitive Chinese market—traditionally the backbone of Thai tourism—has seen a major realignment. Vietnam welcomed over 5.2 million Chinese visitors, outstripping Thailand’s 4.6 million for the first time in recent history.

Local industry leaders are raising the alarm. Representatives from the Chon Buri Tourism Association have warned that if Thailand continues to rely entirely on its old reputation without upgrading its attractions or building new infrastructure, Vietnam could realistically catch up in total arrival numbers within the next few years.

Thailand is not standing still. Rather than competing in a race to the bottom on price, Thai policymakers are choosing to adjust their strategy toward “value tourism.”

The country is rolling out targeted campaigns designed to appeal to specific, high-spending demographics rather than just chasing high arrival numbers.

The Road Ahead: The Digital Ecosystem

Additionally, tourism experts suggest that the smartest path forward might not be conflict, but cooperation. Former policymakers are urging Thailand to take the lead in creating a unified ASEAN visa system—similar to Europe’s Schengen Zone. By turning a direct competitor into a strategic partner, a traveler could seamlessly explore both the beaches of southern Thailand and the heritage sites of Vietnam on a single trip.

The future of this regional rivalry will ultimately be decided in the digital landscape. Modern independent travelers, especially Gen Z and Millennials, demand seamless, mobile-first experiences.

To maintain its competitive edge, the Tourism Authority of Thailand is focusing heavily on building a secure, comprehensive digital tourism ecosystem. This involves integrating artificial intelligence to offer personalized travel recommendations, streamlining digital payments, and improving public safety tracking to boost traveler confidence.

Meanwhile, Vietnam is building its own momentum by co-developing the “Visit Vietnam” super-app alongside private tech firms.

As the competition intensifies, one thing remains absolutely clear: the ultimate winner of this tourism showdown will be the global traveler, who can now enjoy better infrastructure, easier visa access, and richer cultural experiences across both dynamic nations.