BANGKOK, THAILAND – Vietnam surpassed Thailand in 2025 in the number of Chinese visitors, capitalising on new travel trends, lower costs and better connectivity as Thailand’s image as a “safe, trustworthy” destination came under strain.
Thailand loses its core Chinese market
For Thailand’s tourism industry, long seen as the leading destination for Chinese holidaymakers in Southeast Asia, the shift raised fears over lost market share and a damaged image. The kingdom had for years been regarded as the undisputed favourite for Chinese travellers, built on a perception of an open, friendly country where tourists felt “safe and familiar”. In 2025, however, more than 5.3 million Chinese visitors travelled to Vietnam for the first time, while the number going to Thailand fell by 30 percent compared with 2024, a development experts described as an erosion of a once-clear lead rather than a short-term fluctuation.
Safety concerns and loss of trust
Several negative developments undermined Chinese confidence in Thailand, including the country’s role as a transit point for the kidnapping of Chinese celebrities by cross-border call centre gangs in Myanmar, as well as border incidents with Cambodia. Added political instability and security debates further weakened Thailand’s image as a reliable destination and made Chinese tourists more receptive to alternatives such as Vietnam.
Small businesses feel the downturn
A rental operator for traditional Thai costumes said his Chinese clientele had dropped by about 60 percent compared with the peak two and a half years earlier, despite already reduced prices. A nearby juice shop owner reported a 40 percent decline in revenue from the previous year and warned,
“If things continue like this for another three to six months, this shop will not survive.”
said the juice shop owner, who urged the government to clearly demonstrate that the country was safe.
Vietnam moves into the gap
As Japan lost appeal among Chinese travellers following political tensions over Taiwan and cancelled flights, Vietnam stepped into the gap and positioned itself as a new preferred destination. According to Nikkei Asia, Vietnam benefited from additional direct flights from major Chinese cities, eased visa rules and border openings that allowed short trips without passports in certain areas.
New generation, new travel style
A decisive factor in the shift was changing behaviour among younger Chinese tourists under 40, especially Generation Z, who increasingly turned away from traditional package tours and planned trips independently via smartphone. A local tour guide in Vietnam with more than 15 years of experience said that in the past most backpackers had come from Western countries, but now Chinese travellers dominated and often booked day trips online only after arrival, stressing,
“As long as they have a phone, they can go anywhere.”
said the Vietnamese tour guide.
Individual travel boom and road trips
According to the Australian Hospitality Alumni Network in Vietnam, drawing on data from the platform Klook, more than 70 percent of young travellers preferred individual trips, with road trips and short border crossings particularly in demand. Vietnam responded with low prices, straightforward organisation and diverse experiences, and industry representative Bich Phuong explicitly described “road trips” as a new focus of independent travellers.
Cultural proximity as an advantage
Despite historical conflicts such as the 1979 war and disputes in the South China Sea, tourism experts saw cultural similarities between Vietnam and China as a clear advantage for the Vietnamese market. Shared elements like Lunar New Year celebrations, familiar cuisine, a comparable climate and Buddhist traditions helped Chinese visitors adapt and were viewed as a bridge separating political tensions from personal contact.
Spending patterns and price advantage
Compared with Thailand or Indonesia, Vietnam remained the cheaper option for many Chinese tourists, with average spending of about US$379 to US$569 per person and trip in 2025, according to a report by Hanoi-based Vietnam Report. Higher spending was concentrated in major cities, while observers noted that young Chinese holidaymakers were increasingly paying for food, quality experiences, Michelin-listed restaurants and cultural tours.
Food at the centre of tourism spending
Pham Hai Quynh, director of the Asia Tourism Development Institute in Hanoi, said consumption was clearly shifting away from standard group menus towards authentic local culinary experiences and upscale restaurants. Food tours featuring regional specialities and venues with high online ratings were in particularly strong demand, a trend Vietnam was using to its advantage through its diverse street food and new fine-dining establishments.
Thailand’s cost disadvantage
Bhumikitti Ruktaengam, deputy president of the Tourism Council of Thailand, acknowledged in comments to the newspaper Krungthep Turakij that Vietnam’s lower costs gave it a clear edge and that Thailand risked losing further markets. As an example, he cited Russian tourists, who increasingly chose the Vietnamese island of Phu Quoc instead of Phuket because staying there was cheaper.
Phu Quoc milestone highlights Vietnam’s ambitions
Vietnam’s determination to attract international guests was underscored on 15 December 2025, when Phu Quoc celebrated its 20 millionth foreign visitor with extensive gifts. Polish traveller Karolina Agnieszka Muskus was honoured as the 20 millionth visitor and received pearl jewellery, flight tickets, accommodation and entertainment vouchers worth almost 500 million dong; she was deeply moved by the warm welcome and said she would return and tell friends and family about Vietnam.
Tourism boosts Vietnam’s economy
In total, Vietnam received more than 21 million international tourists in 2025 and generated nearly US$30 billion in tourism revenue, providing crucial support to the economy amid inflation, natural disasters and global trade pressures. Although average spending per trip remained below Thai levels, consumption by younger Chinese visitors was rising as they invested more in high-quality experiences, reinforcing a shift towards quality rather than pure volume.
Image risks and social media backlash
At the same time, Pham Hai Quynh warned that inappropriate behaviour by individual holidaymakers could damage China’s image and spark social media debates in Vietnam, as seen recently over “cheap, low-quality tours”. She also stressed that tourism exchanges made it easier for Vietnamese people to separate political or historical tensions from personal relationships and the economic ties created by travel.
Surging online interest from China
Vu Ngoc Lam, director of Agoda Vietnam, reported that search queries from Chinese users for Vietnam on the booking platform had risen by 90 percent over the past year, with particular interest in Ho Chi Minh City, Phu Quoc, Hanoi and Da Nang. He saw this as evidence of growing tourism links between the two markets, reinforced by new flight connections and illustrating how quickly the balance of power in post-pandemic competition could shift.
Race for the post-pandemic traveller
In the global tourism race after the pandemic, no country could rely indefinitely on past success, as former leaders risked falling behind if they stuck to old formulas. Vietnam was currently demonstrating that tourism was a game of adaptation, while for Thailand the unresolved question was whether it could regain its former image as a “safe and trustworthy” destination.