Thailand is no longer the top vacation destination for Vietnamese travelers, having lost its crown to Japan. The latest report from travel platform Agoda, released last month, reveals that Thailand has slipped to second place on the list of overseas destinations favored by Vietnamese tourists in the first half of 2025. Japan now claims the number one spot.
According to Vietnam Express, as of July 9, 2025, Thailand was still holding the top position just a year ago, followed closely by Japan, South Korea, Singapore, and Malaysia.
The Thai Ministry of Tourism and Sports reports a 4.6% year-on-year decline in foreign tourist arrivals, totaling 16 million visitors. Shockingly, Vietnam, which was once the ninth-largest market for Thailand, has fallen out of the top ten in the first five months of this year. Hanoi travel agency director, Hoang Minh, noted a staggering 75% drop in searches for travel packages to Thailand. BKT Bangkok Tourist has also recorded a 50% decrease in interest, while VietGoGo observed visitor numbers plummeting by 30-40%.
Group tour prices, which typically ranged from VND 7-8 million (around Rp 4-5 million), have now been discounted to VND 4 million (about Rp 2 million) but still struggle to attract interest. A representative from VietGoGo explained, “Thailand is currently facing numerous challenges, including earthquakes, a surge in Covid cases, and political tensions with Cambodia.”
In addition to external factors, Thailand’s tourism sector is also suffering from a lack of innovation in its traditional destinations. Tran Duy Vu, a regular visitor from Ho Chi Minh City, expressed his dissatisfaction with rising costs and uninspiring cultural programs. “The floating markets feel overly commercialized and have lost their local charm. Only Bangkok still captivates; other places just aren’t as appealing,” he lamented.
While interest in Thailand wanes, China is experiencing a remarkable surge. Agoda’s report indicates a staggering 478% increase in searches for destinations in China compared to the previous year, making it the third most popular choice for travelers. Nguyen Dong Giang from BKT Bangkok Tourist noted that competition from China is becoming increasingly palpable due to aggressive social media promotions. Nguyen Huu Cuong from Trang An Travel stated that tours to China, starting at VND 4 million, are gaining popularity thanks to their diverse routes and affordable pricing.
Political conditions in Thailand are also impacting tourism. Escalating tensions on the Cambodian border and the suspension of Prime Minister Paetongtarn Shinawatra by the Constitutional Court, as reported by Reuters, have further deepened uncertainties.
Pham Quoc Khanh, Deputy Director of Du Lich Viet, remarked that Thailand is losing its allure, particularly among younger travelers and loyal clients who now seek more personalized and high-quality experiences. Travel agency data reveals a 20-30% increase in interest in tours to China compared to the same period last year.
With domestic flight prices soaring, travel packages to China—especially land routes or short flights—offer a more economical and appealing alternative.
