Vietnam and Malaysia Rise as Southeast Asia’s Tourism Powerhouses in 2025, Overtaking Thailand as Traveller Preferences Evolve-What You Need to Know

Published on December 27, 2025

In a major shift in Southeast Asia’s tourism landscape, Vietnam and Malaysia have emerged as the region’s top travel destinations in 2025, surpassing Thailand in both recovery and visitor growth. As the tourism sector rebounds post-pandemic, travellers planning their next vacation will find that the two countries are not only leading the pack but are also offering unique opportunities for exploration.

Vietnam: Southeast Asia’s Resilient Champion

Vietnam is on track to reach a record-breaking 21 million international visitors by the end of 2025, cementing its position as one of the fastest-growing tourism destinations globally. The country has posted a remarkable recovery, outpacing many of its regional counterparts, including Thailand.

Thanks to visa reforms, improved infrastructure, and the expansion of international flights, Vietnam is drawing travellers from all corners of the globe. Key airports, including Tan Son Nhat International in Ho Chi Minh City and Noi Bai International in Hanoi, have seen significant passenger increases, while the stunning coastlines, cultural treasures, and dynamic cities like Hanoi and Ho Chi Minh City continue to attract tourists.

The Vietnamese government’s strong marketing efforts and policies encouraging investment in the tourism sector have yielded tremendous results, making it a prime destination for families, adventure-seekers, and cultural explorers alike.

Malaysia: A Rising Star in Regional Tourism

Meanwhile, Malaysia has become a strong competitor to Thailand, with international visitors flocking to this vibrant nation known for its tropical beaches, historic cities, and lush rainforests. In fact, Malaysia surpassed Thailand in terms of visitor arrivals early in 2025, showcasing an unexpected surge in tourism.

Factors contributing to Malaysia’s success include easier visa access, diverse cultural attractions, and the country’s efforts to modernize its tourism infrastructure. With its unique blend of Malay, Chinese, and Indian cultures, Malaysia offers an eclectic mix of experiences that appeal to both luxury and budget travellers. Cities like Kuala Lumpur, Penang, and Langkawi continue to draw record numbers of visitors.

Malaysia’s tourism campaigns and efforts to boost direct international flights have played a key role in its rise, as the country continues to outpace regional competitors, including Thailand.

Thailand Faces Challenges in 2025

Thailand, once the region’s undisputed leader in tourism, is now struggling to maintain its growth momentum. The tourism sector in Thailand has faced multiple challenges, including a slower recovery from the pandemic, political unrest, and safety concerns that have dampened some travellers’ enthusiasm. Although still a major destination, visitor numbers have been disappointing compared to its thriving neighbours.

Official reports indicate that Thailand’s tourism growth has been significantly outpaced by Vietnam and Malaysia, with figures showing that the country has not reached pre-pandemic visitor levels as quickly as expected. Concerns over border tensions and the country’s economic recovery have played a role in reducing Thailand’s attractiveness for many tourists.

What Travellers Should Know

If you’re planning to visit Southeast Asia in 2025, Vietnam and Malaysia should be at the top of your list. These countries not only offer beautiful landscapes, rich cultures, and affordable travel options, but they are also leading the way in tourism innovation and recovery. Here’s what you should keep in mind when planning your trip:

1. Visa and Entry Requirements: Both Vietnam and Malaysia have relaxed visa policies to attract more international tourists. Malaysia has introduced easier visa-free access for key markets like India and China, making it more convenient than ever to explore.
2. Flight Accessibility: Vietnam boasts improved flight connectivity, particularly from major markets like Europe and Australia, with direct flights now more frequent. Similarly, Malaysia has strengthened its position with enhanced flight services, particularly with budget airlines catering to regional traffic.
3. Cultural Festivals and Events: Vietnam’s cultural festivals, such as the Tet Lunar New Year, continue to attract tourists seeking an authentic cultural experience. Meanwhile, Malaysia is renowned for its annual rainforest music festivals and the George Town Festival, making it a top choice for those seeking a cultural and culinary adventure.
4. Affordability: Both Vietnam and Malaysia remain affordable for budget-conscious travellers. Vietnam, with its vibrant street food scene and low-cost hotels, offers a unique travel experience at a fraction of the cost of neighbouring destinations. Malaysia provides a similar experience but with a greater emphasis on eco-tourism and luxury resorts, perfect for a mixed travel experience.
5. Thailand’s Tourism Landscape: While Thailand remains a top destination, travellers should be mindful that growth has been slower in 2025, particularly in comparison with Vietnam and Malaysia. Safety concerns and economic challenges may affect travel decisions for some tourists, though Thailand remains a popular tourist hub.

The Road Ahead for Southeast Asia’s Tourism

With Vietnam and Malaysia leading the way in Southeast Asia’s tourism recovery, the region’s tourism future looks promising. Vietnam’s rise as a tourism powerhouse signals a broader trend of regional diversification, where travellers have more options than ever before. Malaysia’s success further confirms that tourism is shifting toward new emerging markets in Southeast Asia, away from the more traditional hotspots like Thailand.

As travellers adapt to new opportunities, these countries offer more than just affordable vacations; they provide a chance to discover untouched landscapes, vibrant cities, and authentic cultural experiences.

What Travellers Should Do

1. Book Flights Early: Both Vietnam and Malaysia have been seeing increased demand, especially during peak tourist seasons. To secure the best deals, plan and book your flights well in advance.
2. Embrace Local Culture: In both countries, embracing local traditions and cultures can enhance your travel experience. Whether it’s sampling Vietnamese pho or exploring Malaysia’s colonial architecture, there’s something for every traveller to enjoy.
3. Stay Informed: Stay updated on any changes to travel restrictions, visa policies, and flight schedules by checking government websites or trusted travel platforms before departure.

Southeast Asia’s tourism landscape in 2025 is more vibrant and diverse than ever, with Vietnam and Malaysia firmly positioning themselves as leaders. The region continues to evolve, with new destinations emerging and longstanding ones like Thailand facing a slower recovery. For savvy travellers looking for adventure, culture, and affordability, Vietnam and Malaysia are the destinations to watch this year.