Vietnam has outpaced Thailand to become the leading Southeast Asian destination for tourists from mainland China, reflecting a major shift in regional travel dynamics as the world’s largest source market recalibrates its preferences.

In 2025, Vietnam welcomed approximately 5.3 million visitors from China, a year-on-year increase of about forty-one per cent and a figure that surpassed Thailand’s roughly 4.5 million arrivals from the same market.

This change is part of broader growth in Vietnam’s tourism sector, which recorded a record twenty-one million total international arrivals last year, driven by strong demand from China and supported by relaxed visa policies, expanded flight connectivity, and competitive travel costs.

Mainland Chinese travellers now account for about a quarter of Vietnam’s foreign visitors, drawn to its proximity, diverse landscapes and emerging tourism offerings that range from cultural heritage sites to experiential travel opportunities.

By contrast, Thailand’s tourism industry has faced headwinds in 2025, with overall foreign arrivals declining by over seven per cent, marking the first annual drop outside the pandemic period in nearly a decade.

Factors weighing on Thailand’s appeal to Chinese tourists include high-profile safety incidents, natural disasters and regional tensions that have dampened confidence among prospective visitors.

Industry observers also cite rising travel costs and perceptions of stronger value elsewhere as contributing to the shift.

While Thailand remains a major global tourist destination with appeal across multiple markets, the redirection of Chinese travel towards Vietnam underscores intensifying competition in Asia’s tourism landscape and highlights the importance of safety perception, pricing and policy incentives in attracting visitors from key international source markets.