Thailand, Southeast Asia’s second-largest economy, has recorded a significant decline in Vietnamese tourist arrivals in 2025, with the number of visitors from Vietnam falling by thirty-three per cent compared with the previous year.

Official tourism figures show that Vietnamese tourists to Thailand reached around six hundred thousand so far this year, down sharply from last year’s total as safety concerns and competitive pressures from neighbouring destinations weigh on travel decisions.

This decline forms part of a broader contraction in foreign tourism to Thailand, which has reported an overall decrease in international visitors in 2025 amid a series of setbacks for the industry.

Thailand’s tourism sector remains one of the main pillars of its economy, but this year it has faced multiple headwinds including high-profile safety incidents, natural disasters and geopolitical tensions that have dented confidence among international travellers.

As of late December, total foreign visitor numbers were reported at just under thirty-two million, a reduction of over seven per cent compared with the same period last year.

Malaysian and Chinese arrivals remain the largest source markets, but even these have shown signs of stalling growth in certain quarters.

The sharp drop in Vietnamese arrivals also reflects changing travel patterns within the region, with neighbouring countries such as Vietnam itself expanding their tourism sectors rapidly.

Vietnam is on track for a record year in inbound tourism, buoyed by visa reforms and increased air connectivity that have made it a more attractive destination for both regional and long-haul visitors.

This growth contrasts with Thailand’s slower recovery, underscoring competitive dynamics in Southeast Asian travel markets.

Tourism authorities in Thailand have acknowledged the challenges and are intensifying promotional campaigns, exploring incentives for key source markets, and working to improve visitor safety perceptions.

With the traditional peak season underway, authorities hope that year-end travel and special events may help to mitigate some of the downturn, but the decline in Vietnamese visitors remains a notable indicator of shifting regional tourism flows.

Economists and industry experts say that the drop in one of Thailand’s historically important source markets could have broader economic implications, particularly for local businesses and regions heavily dependent on Vietnamese visitor spending, unless targeted strategies succeed in revitalising confidence and competitiveness in the Thai tourism landscape.