Vietnam Joins India, Thailand and Southeast Asia in Witnessing a Major Tourism Realignment as Indian Travellers Abandon Traditional Thai Holidays for Vietnam’s E-Visas, Lower Costs and Less Crowded Destinations: Here’s What Is Driving the Shift
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Vietnam Joins India, Thailand and Southeast Asia in Witnessing a Major Tourism Realignment as Indian Travellers Abandon Traditional Thai Holidays for Vietnam’s E-Visas, Lower Costs and Less Crowded Destinations.
For years, Thailand occupied a dominant position in the outbound travel plans of Indian holidaymakers seeking affordable international experiences. From the beaches of Phuket and Krabi to the bustling streets of Bangkok and Pattaya, the country benefited from strong air connectivity, competitive pricing and relatively simple entry requirements. However, a notable shift is now emerging across the Southeast Asian tourism landscape. Indian travellers choosing Vietnam over Thailand has become one of the most significant travel trends of 2026, driven by changing visa policies, better value for money and evolving traveller preferences.
The immediate catalyst behind this transformation is Thailand’s decision to reinstate visa charges for Indian passport holders after ending its temporary visa-free entry arrangement. While the fee may appear modest for individual travellers, it substantially increases holiday costs for families and group travellers. At the same time, Vietnam has strengthened its position through a seamless digital visa system, attractive tourism investments and expanding airline connectivity. As a result, destinations such as Hanoi, Ho Chi Minh City, Da Nang, Hoi An and Ha Long Bay are witnessing growing interest from Indian tourists seeking both affordability and authentic travel experiences. The trend reflects a broader shift in how Indian travellers evaluate international destinations, increasingly prioritising convenience, value and less crowded attractions over traditional tourism favourites.
The Policy Change That Altered the Competitive Balance in Southeast Asia
The recent reintroduction of Thailand’s e-visa fee has changed the economics of travel for many Indian visitors.
Under the revised system, Indian travellers entering Thailand through the Visa-on-Arrival route are required to pay approximately 2,000 Thai Baht, equivalent to roughly ₹5,500. While seasoned travellers may absorb the additional expense, families face a significantly larger financial commitment before accommodation, flights or local transport are even considered.
In contrast, Vietnam continues to promote a streamlined digital entry process that has become a major competitive advantage in the regional tourism market.
Entry Comparison for Indian Travellers
| Factor | Thailand | Vietnam |
|---|---|---|
| Visa Process | Visa-on-Arrival with fee | Fully digital e-visa |
| Approximate Cost | Around ₹5,500 | Lower application costs depending on visa type |
| Processing Method | Airport processing | Online before departure |
| Waiting Time | Potential airport queues | Typically approved within days |
| Traveller Convenience | Moderate | High |
The difference may appear administrative, yet convenience increasingly influences destination selection, especially among younger travellers, remote workers and short-break holidaymakers.
Why Vietnam Is Emerging as Southeast Asia’s Most Attractive Value Destination
The growing popularity of Vietnam extends far beyond visa convenience.
Travel spending analyses across Southeast Asia consistently show that Vietnam offers excellent value in accommodation, dining and domestic transportation. This affordability enables visitors to upgrade their travel experiences without significantly increasing their budgets.
Typical Travel Cost Comparison
| Travel Component | Vietnam | Thailand |
|---|---|---|
| Mid-Range Hotel | Generally lower | Generally higher in major tourist hubs |
| Local Dining | Highly affordable | Competitive but often higher in tourist zones |
| Domestic Transport | Cost-effective | Moderate |
| Guided Excursions | Lower average cost | Higher in heavily visited destinations |
| Luxury Resort Access | Often more affordable | Premium pricing in popular coastal regions |
For Indian tourists travelling from metropolitan centres such as Delhi, Mumbai, Bengaluru, Chennai and Hyderabad, this translates into greater spending power and longer holiday durations.
Many travellers report that destinations such as Da Nang, Nha Trang and Hoi An provide upscale resort experiences at costs substantially below comparable offerings in Phuket or Koh Samui.
Vietnam’s Tourism Boom Reflects a Larger Regional Realignment
The surge in Indian arrivals is not merely anecdotal. It aligns with broader tourism growth patterns across Vietnam.
Recent tourism data indicates that Indian visitor arrivals to Vietnam have risen dramatically, with growth rates exceeding 60% year-on-year and total arrivals surpassing half a million visitors. This increase places India among Vietnam’s fastest-growing source markets.
Key Drivers Behind Vietnam’s Growth
| Growth Factor | Impact on Tourism |
|---|---|
| Digital e-visa programme | Faster trip planning |
| Expanded airline routes | Greater accessibility |
| Competitive pricing | Higher affordability |
| Diverse landscapes | Appeals to multiple traveller segments |
| Lower crowd density | Improved visitor experience |
| Social media exposure | Strong destination awareness |
The result is a destination that increasingly appeals to leisure travellers, honeymooners, adventure seekers and premium travellers alike.
Beyond Beaches: The Diversity Advantage Drawing Indian Tourists
One reason Vietnam is outperforming expectations is its remarkable geographical diversity.
Unlike destinations that rely heavily on beach tourism, Vietnam offers a broad range of experiences across relatively short travel distances.
Popular Vietnamese Experiences for Indian Travellers
| Destination | Key Attraction |
|---|---|
| Hanoi | Historic architecture and cultural heritage |
| Ha Long Bay | UNESCO-recognised limestone seascapes |
| Da Nang | Beaches and luxury resorts |
| Hoi An | Heritage streets and lantern culture |
| Ho Chi Minh City | Urban experiences and gastronomy |
| Sapa | Mountain landscapes and trekking |
This variety allows travellers to combine culture, adventure, wellness and luxury within a single itinerary.
Thailand continues to offer diverse tourism products, yet overtourism concerns in several flagship destinations have led some visitors to seek alternatives.
Travel Insight: Why Overtourism Is Influencing Holiday Decisions
The issue of overtourism has become increasingly important worldwide.
Popular destinations often experience:
- Higher accommodation rates
- Longer attraction queues
- Increased transport congestion
- Reduced authenticity
- Environmental pressures
Several major Thai tourism centres have experienced these challenges in recent years due to exceptionally strong visitor numbers.
Vietnam, by comparison, still offers numerous destinations where travellers can enjoy relatively uncrowded environments. This factor resonates strongly with modern tourists seeking immersive and meaningful travel experiences rather than heavily commercialised sightseeing.
Airline Connectivity Is Strengthening Vietnam’s Position
Another important contributor to Vietnam’s tourism growth is expanding aviation connectivity.
Airlines across Asia have increased services linking Indian cities with Vietnamese destinations. Direct and one-stop flight options now connect travellers with major gateways including Hanoi and Ho Chi Minh City.
Connectivity Trends Supporting Tourism Growth
| Trend | Tourism Impact |
|---|---|
| More direct routes | Reduced travel time |
| Increased airline competition | Better airfare options |
| Growing airport infrastructure | Enhanced passenger experience |
| Multi-city itineraries | Greater destination flexibility |
Improved accessibility reduces barriers for first-time international travellers while supporting repeat visitation.
Thailand vs Vietnam in 2026: Which Destination Delivers Better Value for Indian Travellers?
The competition between Thailand and Vietnam has entered a new phase in 2026 as Indian travellers increasingly weigh visa policies, travel budgets and overall visitor experiences before booking international holidays. While Thailand remains one of Asia’s most established tourism destinations, Vietnam has emerged as a formidable challenger by offering streamlined entry procedures, competitive pricing and a growing portfolio of cultural and leisure attractions.
For many Indian families, couples and first-time international travellers, the decision is no longer based solely on airfare. Instead, travellers are evaluating the total holiday cost, including visas, accommodation, food, local transport and sightseeing expenses. In this environment, Vietnam has gained a significant advantage by positioning itself as a destination where visitors can enjoy premium experiences without stretching their travel budgets.
The comparison is particularly relevant as Thailand has reintroduced visa charges for Indian passport holders, while Vietnam continues to benefit from its efficient digital visa system. At the same time, growing concerns about overcrowding in some of Thailand’s most popular destinations have encouraged tourists to explore alternative destinations across Southeast Asia.
Thailand vs Vietnam: Travel Comparison for Indian Visitors in 2026
| Category | Vietnam | Thailand |
|---|---|---|
| Entry Process | Digital e-visa application completed before travel | Visa-on-Arrival with applicable fee |
| Visa Convenience | High | Moderate |
| Average Daily Budget | Lower | Higher in major tourist centres |
| Accommodation Value | Strong value across all categories | Competitive but often higher in resort destinations |
| Luxury Travel | Premium experiences at relatively lower prices | Extensive luxury offerings but at higher costs |
| Food and Dining | Affordable local cuisine and cafés | Diverse dining scene with higher tourist-area pricing |
| Crowd Levels | Generally less crowded | High visitor volumes in key destinations |
| Cultural Attractions | Historic cities, heritage towns and UNESCO sites | Temples, royal landmarks and cultural districts |
| Beach Tourism | Da Nang, Nha Trang, Phu Quoc | Phuket, Krabi, Koh Samui |
| Nature Experiences | Mountains, caves, rice terraces and bays | Islands, forests and marine parks |
| Family Travel Appeal | Growing rapidly | Long-established family destination |
| Honeymoon Market | Increasing popularity | Mature and highly developed |
| Social Media Popularity | Fast-growing among younger travellers | Consistently strong |
| Value for Indian Rupee | Excellent | Moderate to strong |
Where Thailand Still Holds an Advantage
Despite Vietnam’s rapid rise, Thailand retains several competitive strengths. The country benefits from decades of tourism development, extensive tourism infrastructure, a larger inventory of international hotel brands and exceptional domestic connectivity. Bangkok remains one of the world’s leading aviation hubs, while destinations such as Phuket and Krabi continue to attract millions of international visitors annually.
Thailand also offers a wider range of established entertainment districts, shopping centres, family attractions and integrated resort experiences, making it particularly attractive for repeat travellers and larger holiday groups.
Why Vietnam Is Capturing Growing Attention
Vietnam’s appeal lies in its combination of affordability and authenticity. Travellers can explore the lantern-lit streets of Hoi An, cruise through Ha Long Bay, trek in the mountains around Sapa and relax on the beaches of Da Nang within a single itinerary. Many of these experiences remain less commercialised than comparable attractions elsewhere in the region.
Furthermore, Vietnam’s tourism strategy has focused heavily on digital convenience, destination diversification and expanding international air connectivity, all of which align closely with the preferences of modern Indian travellers.
The Verdict for Indian Holidaymakers
For travellers seeking established tourism infrastructure, vibrant nightlife and a familiar international holiday experience, Thailand continues to be a strong choice. However, for those prioritising affordability, digital convenience, cultural immersion and less crowded attractions, Vietnam is increasingly emerging as Southeast Asia’s most compelling travel destination in 2026.
The growing shift in booking patterns suggests that the question for many Indian travellers is no longer whether Vietnam can compete with Thailand, but whether Thailand can maintain its traditional dominance as Vietnam’s tourism momentum continues to accelerate.
Practical Travel Advice for Indians Considering Vietnam in 2026
Travellers planning a Southeast Asian holiday should evaluate more than airfare costs alone.
Factors worth considering include:
- Total visa expenditure.
- Local transportation costs.
- Accommodation value.
- Attraction accessibility.
- Seasonal weather patterns.
- Crowding levels.
- Length of stay flexibility.
Vietnam currently performs strongly across many of these categories, particularly for budget-conscious families and younger travellers.
For travellers seeking cultural depth, culinary experiences and strong value for money, destinations such as Hanoi, Hoi An and Da Nang offer compelling alternatives to traditional regional favourites.
A New Chapter in Southeast Asian Travel Competition
The rise of Indian travellers choosing Vietnam over Thailand illustrates how quickly tourism markets can evolve when policy, affordability and traveller expectations intersect.
Thailand remains one of Asia’s most important tourism destinations and continues to attract millions of visitors annually. However, Vietnam’s combination of efficient digital visas, competitive pricing, expanding air connectivity and comparatively uncrowded attractions is creating a powerful alternative for Indian holidaymakers.
As travel demand across Asia continues to recover and diversify, the competition between Southeast Asia’s leading destinations is likely to intensify. For now, Indian travellers choosing Vietnam over Thailand reflects a broader shift towards destinations that offer convenience, value and authentic experiences in equal measure. The trend is not simply about saving money; it signals changing traveller priorities and the emergence of Vietnam as one of the region’s most influential tourism success stories.
