Why Are Tourists Are Choosing Vietnam Over Thailand?

Vietnam is closing the tourism gap with Thailand while Thailand’s visitor numbers are starting to fall. Thailand still receives more international travelers, but Vietnam is growing faster, attracting more visitors from Western countries and offering lower prices in many tourist areas.

That shift comes down to more than hotel costs or flight routes. Visa rules, safety concerns, rising prices, commercialization, changing visitor markets, and the daily frustration of being overcharged all affect how travelers judge a destination. The numbers show the trend, but the experience explains it.

Thailand and Vietnam’s Tourism Numbers Are Moving in Opposite Directions

Thailand remains the larger tourism market, but Vietnam is gaining ground quickly. Thailand welcomed 18.5 million international visitors between January 1 and August 1, generating roughly 900 billion baht. Arrivals were down about 3.19% year over year.

The Thailand Ministry of Tourism and Sports publishes arrival statistics, while Vietnam’s National Authority of Tourism visitor data shows how quickly Vietnam’s numbers have been rising.

The 2026 figures are year-to-date snapshots rather than full-year totals, so the reporting periods aren’t identical. Even so, the direction is clear. Vietnam had already welcomed more visitors in the first half of the year than it received during all of 2023. Its annual target is now 25 million visitors, which would put it much closer to Thailand.

Growth matters more than the current total.

Thailand and Vietnam reached very different peaks before the pandemic. In 2019, Vietnam welcomed about 18 million international visitors, while Thailand received just under 40 million.

Vietnam hasn’t overtaken Thailand in total arrivals. That isn’t the main issue. The important change is that Vietnam has continued to set new growth records, while Thailand’s numbers have started moving in the opposite direction.

If Vietnam reaches its 25 million target, it would finish nearly 40% above its previous record. Thailand, meanwhile, could end up close to 17% below its pre-pandemic peak. That is a major shift in momentum.

Vietnam is closing the gap because its tourism industry is still growing rapidly, while Thailand is losing some of its previous momentum.

Who Is Visiting Thailand and Vietnam?

The visitor mix also helps explain why the two countries are performing differently.

Thailand’s leading visitor markets include:

• China, with about 2.9 million visitors
• Malaysia, with roughly 2.25 million visitors
• India, with just over 1 million visitors

Malaysia’s total needs some context. Many Malaysians cross the border for a day, work, or a short visit, so the figure doesn’t always represent people flying into Thailand for a traditional vacation.

India has also become an important market, although changing visa requirements created some uncertainty before the rules changed again.

Vietnam’s numbers are more spread across several major markets. China and South Korea account for about 40% of arrivals, but Western markets are growing quickly:

• Australia is up 18%
• The United States is up 17%
• Canada is up 24%
• European arrivals overall are up 55%

That matters because Vietnam’s growth doesn’t depend on one country alone. It is attracting visitors from Asia, Europe, North America, and Oceania at the same time.

1. Vietnam Offers Better Value for Money

Cost is the clearest reason travelers are choosing Vietnam over Thailand. After five years of living in Thailand and taking a sixth trip through Vietnam, the contrast was hard to miss.

In Vietnam, prices felt low across the entire trip. Taxis, food, hotels, drinks, and entertainment all seemed to offer more for the money. The difference wasn’t limited to one cheap meal or an inexpensive hotel. Almost every purchase created the same reaction: Vietnam felt affordable.

Drinks and nightlife show the difference.

At one of Vietnam’s fanciest bars, a cocktail cost about $5. That price would be difficult to find in Bangkok’s most famous rooftop venues.

Lebua Sky Bar is an extreme example because it offers an impressive view and an upscale setting. Still, the cheapest drink on the menu costs close to 1,000 baht before service charges and tax. Basic cocktails cost around 1,300 baht, while champagne by the glass starts at approximately 2,000 baht.

Two drinks at the rooftop bar came to about $100. The venue may be worth visiting for the experience, but it isn’t an affordable night out.

Bangkok’s tourist districts can also charge around 170 to 200 baht or more for a drink. A pair of beers by the river cost more than 250 baht each, even though the same type of beer cost about 41 baht at a 7-Eleven.

Bui Vien Walking Street in Ho Chi Minh City offered a different experience. Drinks felt much cheaper, and the street was busy with Vietnamese residents as well as foreign visitors. That mix matters because it suggests the area is part of local nightlife rather than a place reserved almost entirely for tourists.

Transportation costs add up.

Thailand can be affordable when visitors use apps such as Grab and Bolt. However, transportation still felt cheaper in Vietnam. A 40-minute ride from the airport cost about $3, a price that seemed difficult to explain from a visitor’s perspective.

Street taxis in Thailand create another problem. Some drivers refuse to use the meter and quote a flat rate of around 200 baht, even for trips that should cost less. One ride to Terminal 21 involved being quoted 200 baht before the driver agreed to a lower price.

A single inflated fare won’t ruin a vacation. Repeated fares can change the total cost of a trip, especially when visitors take several rides each day.

Tourist attractions can feel expensive too.

Thailand is well-known for dual pricing, although the experience may vary by location. Long-term residents often know which attractions and districts cater mainly to tourists. First-time visitors usually don’t have that information.

An elephant attraction, for example, quoted a price of 550 baht. The issue isn’t that every attraction must be cheap. The problem is that tourists may assume the price they’re given is standard, even when locals pay less or visit other places entirely.

Travelers aren’t comparing hotel prices alone. They’re comparing the total cost of the experience, including taxis, food, drinks, attractions, and unexpected charges.

2. Thailand’s Visa and Entry Rules Create Uncertainty

Thailand’s entry system has changed several times. Tourist visa rules, repeated entries, border runs, and immigration checks have all become sources of concern for some travelers.

The digital arrival card has added another step. Travelers arriving in Thailand have reportedly encountered confusion when people in front of them at immigration hadn’t completed it. Even a small problem at the border can create delays and make the process feel less predictable.

Vietnam’s tourist visa feels straightforward.

For an Australian traveler, Vietnam’s e-visa process took about two days and cost roughly $10. The visa provided 90 days with multiple entries.

That type of permission works well for travelers planning a longer trip or combining Vietnam with visits to neighboring countries. The process may still require preparation, but the requirements feel easier to understand.

Thailand’s official tourism website provides travel information, but the larger concern is the perception that immigration rules can change or that officers may examine a traveler’s history more closely than expected.

Social media spreads entry problems quickly

Travelers who are denied entry to Thailand often share their experiences on TikTok, Instagram Reels, and other platforms. Those stories can reach thousands of potential visitors before they book a flight.

Some travelers have said they were told they couldn’t re-enter Thailand after being away for 45 days. Others have posted about being deported after repeated border runs. Another group said immigration reviewed their travel history and cited insufficient funds when denying entry.

These cases may not represent every visitor’s experience, but they create uncertainty. A traveler who sees several videos about denied entry may decide that Vietnam offers a safer and simpler choice.

A complicated entry process can damage demand before a traveler ever arrives.

3. Thailand’s Image Has Taken Several Hits

Travel decisions are shaped by more than price. News reports and social media videos have also affected Thailand’s image.

Recent coverage has included reports about tourists behaving badly, fights involving visitors, crime networks, aggressive behavior during Songkran, a school shooting, and increased attention on gun crime. Videos of street fights, particularly in Phuket, can make the country appear less safe even when those incidents involve a small number of people.

Safety affects destination choices.

Most travelers don’t research every incident in detail. They see a short video or headline and form a quick impression. Families may become cautious. First-time visitors may choose another destination. Repeat travelers may decide to try somewhere that appears calmer.

Negative coverage can affect travel decisions in several ways:

• Visitors may worry about personal safety.
• Families may prefer a destination with fewer alarming headlines.
• Travelers may question whether tourist areas are being managed well.
• Social media users may share the most dramatic incidents more widely than ordinary experiences.

Thailand isn’t defined by every fight or crime report. Still, repeated exposure to negative stories can change how people view the country.

4. Thailand May Be a Victim of Its Own Success

Thailand’s tourism industry has attracted major investment. Hotels, restaurants, bars, shopping centers, and attractions have become more polished, but that progress has also made popular areas more expensive and commercial.

Older local businesses disappear as newer, higher-priced businesses move in. Rising rents push locals away from the districts that attract the most tourists. As a result, the area may look more modern while feeling less connected to everyday Thai life.

Bangkok’s prices don’t always match the experience

There is nothing wrong with Bangkok charging prices similar to Tokyo, New York, or Sydney. The concern is whether visitors receive the same standard of service and infrastructure.

Tourists may pay premium prices while dealing with poor sidewalks, aggressive sales tactics, overpriced tuk-tuks, taxi drivers who refuse to use meters, and people offering questionable services in the street. A visitor can pay for a global-city experience and still spend part of the day arguing about a taxi fare.

Residents often know how to avoid these problems. They use reliable apps, skip certain districts, and recognize which businesses charge fair prices. Tourists don’t have that local knowledge.

The result is a disconnect between what visitors pay and what they receive. The food or hotel may be excellent, but the surrounding experience can still feel frustrating.

5. Thailand’s Changing Tourist Mix Is Affecting the Experience

India has become a fast-growing visitor market for Thailand. In Pattaya, many bars and restaurants have changed their menus, entertainment, and services to appeal to Indian travelers.

That shift has caused strong reactions from some repeat visitors. People who return once a year or once every few years often expect familiar areas to remain unchanged. When businesses adapt to a new market, those visitors may feel that the Thailand they remember is disappearing.

Prejudice has made the conversation worse.

Racism and prejudice toward Indian people exist in Thailand and in many other countries. Online discussions about Indian tourism can quickly become abusive and openly racist. Those reactions are unfair and shouldn’t be treated as a reasonable criticism of the visitors themselves.

The issue is better understood as a reaction to change. Businesses are responding to a growing customer base, and that adaptation helps support Thailand’s tourism industry. Some travelers simply dislike the new atmosphere, especially when it appears alongside higher prices and more commercial tourist areas.

The changing tourist mix connects to the wider concern about local character. Visitors may feel less attached to a place when the businesses, crowds, and atmosphere no longer resemble the destination they first visited.

6. Thailand’s Chinese Market Has Been Damaged

Chinese travelers remain Thailand’s largest visitor market year to date, but arrivals have fallen significantly compared with the years before COVID-19. A decline in the country’s biggest market naturally affects the overall total.

Safety concerns changed public perception.

A high-profile case involving a Chinese actor who was reportedly kidnapped while traveling in the region had a major effect on how some Chinese travelers viewed Thailand. The story spread quickly, and public perception appeared to change almost overnight.

A single case doesn’t describe an entire country. However, high-profile incidents can influence travel decisions when people already have other destinations to choose from.

Domestic travel in China can offer better value.

After several trips through China, the cost difference also became clear. Domestic travel in China often felt cheaper than visiting Thailand’s main tourist destinations.

Bangkok, Phuket, Koh Samui, and Chiang Mai are all geared toward international visitors. Prices in their most popular districts reflect that audience. In contrast, travelers moving around China may find lower prices for transportation, food, hotels, and attractions.

Thailand has long benefited from its reputation as an affordable vacation destination. When another country offers better value, and travelers can find inexpensive options closer to home, that advantage becomes less convincing.

7. Vietnam Can Feel More Local and Culturally Integrated

Some travelers describe Vietnam as feeling like Thailand did about 15 years ago. That comparison is subjective, but it captures a common impression: Vietnam’s tourist areas can still feel closely connected to local life.

Thailand has become more Westernized and commercialized in its most popular districts. On Sukhumvit Road in Bangkok, visitors encounter malls, beauty parlors, cafes, and expensive restaurants at nearly every turn. Those businesses can be useful and attractive, but the street can feel like it belongs to an international city rather than a distinctly Thai neighborhood.

Local culture still exists throughout Bangkok. Visitors who know where to look can find it every day. Tourists with only a few days in the city may spend most of their time in areas built primarily for visitors.

Saigon blends tourists and locals.

Ho Chi Minh City, also known as Saigon, offered a different experience. Staying in District 1 meant staying in a tourist area, yet Vietnamese people still filled the bars, restaurants, and cafes.

That mix made the city feel more culturally integrated. Visitors didn’t have to leave the main district to see residents using the same businesses. In Thailand, tourists in major tourist areas can sometimes feel separated from ordinary local life.

For travelers who want culture, that difference matters. Many people don’t travel to visit malls that could exist in any large city. They want food, neighborhoods, businesses, and social spaces that feel tied to the place they’re visiting.

Vietnam can offer a local experience without requiring visitors to leave the main tourist districts.

Tourists Don’t Want to Feel Like Walking ATMs

The final reason connects most strongly with the experience of living in Thailand for five years. Over time, repeated attempts to charge foreigners more can create the feeling that people see visitors as wallets rather than guests.

The examples include overpriced taxis, dual pricing, different restaurant menus, inflated service costs, and car servicing quotes that appear higher because the customer is foreign. None of these incidents has to be dramatic to become tiring. The frustration builds each time a visitor has to question a price.

Small overcharges create a lasting impression.

A taxi driver may quote 250 baht for a journey that should cost less. A restaurant may provide an English-language menu with different prices from the Thai menu. Another driver may refuse to turn on the meter and expect the passenger to accept a fixed fare.

These situations make visitors watch every transaction. Instead of relaxing, they wonder whether the next price is fair.

Restaurants can add to the problem by listing one price and adding a 10% service charge plus tax when the bill arrives. The final total may be about 17% higher than the menu price. When the extra charges weren’t clear, customers feel misled.

“No one wants to go on holiday and feel like they’re being taken advantage of at every opportunity.”

Vietnam may not be free from overcharging or tourist pricing. The difference described here is the overall feeling during the trip. When travelers don’t feel constant pressure to check every fare and bill, the destination becomes easier to enjoy.

Visitors take those impressions home. They tell friends that Vietnam was affordable, simple, and welcoming. Those conversations can influence the next holiday, which is how small individual experiences eventually affect tourism demand.

Thailand’s Tourism Challenge Is About Value, Trust, and Experience

Vietnam’s rapid growth comes from several factors working together:

1. Lower prices in many tourist areas make the full trip more affordable.
2. Easier visa rules reduce uncertainty before arrival.
3. Additional flight connections make Vietnam easier to reach.
4. Visitors from Europe, the Americas, and Oceania are increasing quickly.
5. Tourist districts often feel more connected to local life.
6. Prices and experiences can feel more consistent.
7. Travelers may feel less pressure to watch for overcharging.

Thailand still has major advantages. It has a larger tourism industry, worldwide recognition, established destinations, extensive hotel capacity, and popular cities and islands such as Bangkok, Phuket, Koh Samui, and Chiang Mai.

Those strengths won’t disappear overnight. However, they may not be enough if travelers continue to feel that prices are too high, entry rules are unclear, taxis are unreliable, and tourist areas offer less local character than they once did.

Thailand doesn’t need to become Vietnam. It does need to address the gap between price and experience. Clearer immigration rules, transparent pricing, functioning taxi meters, better sidewalks, safer tourist areas, and room for local businesses would improve the trip for residents and visitors alike.

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