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From the North to the South, Vietnam is an increasingly attractive tourist destination thanks to affordability, global exports of its popular cuisine, and growing awareness of its beautiful destinations and views, including Ha Long Bay and the beaches of Da Nang. The country is entering a decisive tourism cycle. After a rapid rebound off the pandemic trough, the country has shifted from recovery to expansion, with policy, infrastructure, and product development moving in tandem. From MICE (Meetings, Incentives, Conferences, and Exhibitions) to retirees, growth in tourism is an increasingly significant driver of economic growth.
If you could harness global intake of dishes like phô and cha gio, Vietnam’s tourism economy would already outweigh many others. They certainly don’t hurt in awareness. As it is, tourism already generates 6-9% of the country’s economy (9% pre-pandemic). The government’s stated tourism ambition is to position it as a pillar of the economy by the end of the decade, lifting both international arrivals and domestic travel while spreading visitor spend beyond a handful of coastal hubs. The levers are clear: easier visas, better air and road connectivity, more diversified experiences (from MICE to wellness), and a sustainability push that protects Vietnam’s natural assets as volumes rise.
Policy tailwinds: visas, airlift, and the night-time economy
A major structural change arrived with the expansion of e-visas and longer visa-free stays for select markets. The three-month, multi-entry e-visa and the 45-day visa-exempt window for visitors from 13 countries have shortened booking lead times and increased repeat visitation. Airlines responded by restoring and adding capacity from Northeast Asia (South Korea, Japan, Taiwan), Southeast Asia (Thailand, Singapore, Malaysia), and key long-haul feeders (Australia, Middle East hubs). On the ground, provinces are piloting “night-time economy” zones—later operating hours for dining, markets, live music, and cultural shows—to extend length of stay and average daily spend.
Equally important is connectivity inside the country. Expressway mileage is increasing, shrinking travel times between city pairs such as Ho Chi Minh City–Mui Ne and Da Nang–Hue. New and upgraded terminals in Da Nang, Cam Ranh, and Phu Quoc have lifted peak-hour handling capacity. The Long Thanh international airport near Ho Chi Minh City—now under construction—will be the single biggest capacity unlock for the southern gateway once Phase 1 opens, creating space for more long-haul and regional flights. Picturesque high speed trains are planned to replace slower moving routes beginning in 2030, cutting current travel time between capitol Hanoi and commercial centre Ho Chi Minh City from 30 to 5.5 hours.
Demand outlook: what the next five years could look like
Vietnam welcomed a record ~18 million international visitors in 2019, then rebuilt to the low-teens in 2023–24 as borders reopened and airlines rebuilt networks. Looking forward, a reasonable base-case view is mid- to high-teens (millions) in annual international arrivals by 2026, with domestic trips surpassing pre-COVID levels and continuing to grow on the back of rising middle-class incomes. In an accelerated case: faster visa liberalization for additional European markets, more Gulf carrier frequencies, and timely completion of key infrastructure, international arrivals could push back toward, and then beyond, the 2019 high before 2027. A downside case would center on external shocks: fuel prices, regional geopolitical disruptions, or airline capacity constraints; even then, domestic tourism has shown resilience and would cushion the sector.
On the revenue side, hoteliers are targeting a mix of occupancy normalization and rate discipline. Average Daily Rate (ADR) in tier-one city hotels has firmed as corporate travel and MICE return; coastal resorts have been more promotional in shoulder seasons but are tightening inventory during peak months. For planners, the big pivots are: (1) diversify source markets beyond China and South Korea; (2) broaden product beyond beach sun-and-sand; (3) lengthen stays with richer night-time and wellness offerings.
Product strategy: beyond beaches
Vietnam’s tourism boards and private operators are focused on four high-yield themes:
- Culture & cuisine – Street food, coffee culture, imperial history, and contemporary arts give Vietnam defensible differentiation in Asia.
- Nature & soft adventure – Karst seascapes, highland trekking, caves, national parks, and cycling routes appeal to experience-led travelers.
- MICE & sports – New convention space in Ho Chi Minh City and Da Nang, golf clusters in Danang–Hoi An and Phan Thiet, and road-cycling/gravel events extend seasonality.
- Wellness & medical – Resorts are adding integrated spas, detox programs, and traditional medicine treatments; clinics in Hanoi and HCMC are courting regional medical travelers.
Sustainability is no longer a side note. Provinces are instituting waste-management standards for islands and bays, restricting single-use plastics on boats, and tightening carrying-capacity rules for sensitive areas. Operators that can demonstrate measurable impact including reef restoration, mangrove planting, community-based tourism will find marketing support and permitting advantages.
Five hotspots to watch
Below are five destinations where growth plans, product investment, and connectivity improvements intersect.
1) Ho Chi Minh City (HCMC): Vietnam’s urban engine
Why it matters: HCMC is the country’s commercial gateway and busiest long-haul entry point, making it the first stop for many itineraries and the anchor for MICE.
What’s new: A steady pipeline of lifestyle hotels, rooftop bars, and craft dining is reshaping District 1 and Thu Duc City. Museum upgrades, walking-street activations, Saigon River promenade plans, and an expanded calendar of art and design festivals extend the city’s cultural appeal.
What to watch: Long Thanh airport will rewire air traffic patterns; until then, Tan Son Nhat capacity improvements and Gulf carrier frequencies support Middle East and Europe flows. Expect continued growth in corporate meetings and blended “workcation” stays.
2) Hanoi & Ninh Binh: heritage, coffee, and green escapes
Why it matters: Hanoi is Vietnam’s cultural capital, the jumping-off point for Halong Bay and the northern highlands.
What’s new: Upgrades to the Old Quarter’s pedestrian zones, a rising third-wave coffee scene, and a string of boutique hotels in French-colonial buildings are elevating the urban experience. A short drive away, Ninh Binh (often called “Halong Bay on land”) is adding eco-lodges, cycling routes, and cave/boat experiences with stricter environmental controls.
What to watch: As airlines add Northeast Asia capacity into Hanoi, twin-center itineraries, Hanoi + Ninh Binh or Hanoi + Sapa, will lengthen stays beyond quick city breaks.
3) Da Nang–Hoi An–Hue: the central coast growth triangle
Why it matters: With an international airport, beach resorts, UNESCO-listed Hoi An, and imperial Hue nearby, this cluster offers variety within a compact radius.
What’s new: Convention facilities and golf courses have multiplied; Hoi An has expanded car-free hours and craft markets; Hue’s citadel restorations and riverside promenades are drawing culture-led travelers. The Hai Van Pass and Son Tra Peninsula continue to trend with cyclists and photographers.
What to watch: Additional Korea/Japan flights, new mid-market family resorts, and surf/wellness programming are broadening seasonality. Expect more integrated packages that link heritage, food tours, and golf.
4) Phu Quoc Island: leisure flagship with sustainability tests
Why it matters: Vietnam’s largest island is the country’s marquee beach destination for regional leisure and incentives.
What’s new: Internationally branded resorts, beach clubs, cable-car attractions, and a growing F&B scene have boosted the island’s profile. Charter flights and direct services from India, Korea, and ASEAN markets have improved access.
What to watch: Environmental capacity is the make-or-break. Water, waste, and reef protection will determine whether Phu Quoc scales gracefully. Operators investing in renewable energy, plastic reduction, and marine conservation will win both travelers and regulators.
5) Ha Long Bay & Quang Ninh: cruise capital and beyond
Why it matters: Halong Bay remains Vietnam’s most iconic landscape, and Quang Ninh province is diversifying beyond day boats.
What’s new: A modern cruise port, improved expressways from Hanoi, and upgraded overnight vessels have lifted quality. Nearby Bai Tu Long and Lan Ha bays offer lower-density alternatives; theme parks and coastal promenades are growing the family segment.
What to watch: Differentiation is key: fewer boats per route, higher service standards, and curated on-shore experiences (fishing villages, caves, farms) are the path to higher yields.
(Runner-ups for your editorial rotation: Nha Trang–Cam Ranh for resort pipelines and diving; Da Lat for cool-weather wellness and farm-to-table; Ha Giang Loop for motorbike and cycling adventure.)
Segments with the strongest momentum
- South Korea & India source markets: Korea remains Vietnam’s largest international feeder; India is the fastest grower as direct flights expand and wedding/incentive planners seek value.
- Domestic mid-market families and friend groups: Short-haul weekend trips are fueling central-coast resorts and northern eco-stays.
- MICE and corporate offsites: Price-to-quality ratio in HCMC and Da Nang is attracting regional meetings that previously defaulted to Bangkok or Singapore.
- Experience-led travelers: Culinary tours, coffee itineraries, photography workshops, gravel cycling, and cave trekking are driving premium willingness to pay.
Risks and how the sector is addressing them
- Capacity mismatch: Certain resorts and islands face peak-season strain. Staggered check-in times, spread-out excursions, and advance-booking incentives are mitigating pinch points.
- Environmental stress: Provinces are implementing carrying-capacity rules, reef and mangrove restoration, and stricter waste-management, especially critical in Phu Quoc and the bays.
- Airline exposure: Vietnam’s long-haul access depends on a handful of carriers. Tourism boards are courting Gulf and Northeast Asian partners and co-funding route marketing to de-risk.
- Workforce gaps: Training academies and hotel-school partnerships are scaling service quality; digital upskilling (revenue management, CRM, content) is now mainstream.
What to watch in the numbers
- Average Length of Stay (ALOS): Night-time economy pilots, food tours, and wellness packages should nudge ALOS up in Hanoi, HCMC, and Da Nang.
- RevPAR & ADR: Expect firmer rates in city business hotels; coastal resorts may rely on dynamic pricing and value-adds to defend margins in shoulder months.
- Distribution mix: Direct web and social commerce are gaining share as Vietnamese operators professionalize marketing; OTAs remain vital for international discovery.
- Sustainability metrics: Operators will increasingly report waste diversion, renewable energy use, reef health indices, and community spend, data that influences both travelers and regulators.
The bottom line
Vietnam’s tourism playbook for the next five years is pragmatic growth: make arrival simpler, move people around the country faster, diversify the reasons to visit, and protect the landscapes that draw them. If visa liberalization continues and airlift scales alongside infrastructure, Vietnam can reclaim its pre-pandemic highs and then push beyond, with more balanced regional development and higher yield per visitor. For investors and operators, the opportunity sits at the intersection of culture and nature, short-haul access and long-haul aspiration, and a firm commitment to sustainability that ensures Vietnam’s star attractions remain exactly that, worthy of repeat visits for decades to come.
