Friday, July 18, 2025
Vietnam is now the second major tourism hub in Southeast Asia, upstaging popular Thailand, whose position is threatened by the pace of investment in infrastructure aimed at luring more tourists to Vietnam. It’s not just the bullet trains or the efforts to build iconic attractions in its cities like Hanoi or Da Nang. These rates of investment have greatly enhanced Vietnam’s tourism offer and is a major threat to Thailand’s hold on the region. While Vietnam develops its transport infrastructure and access to luxury, Thailand has to raise its game to stay ahead in a fast-changing tourism world.
Thailand is facing growing concerns about its position in the global tourism market as neighboring countries, particularly Vietnam, ramp up their investments in infrastructure and tourism development. Vietnam’s swift investments, including high-speed railways and iconic projects in cities like Hanoi and Da Nang, have placed it in direct competition with Thailand, which has long been a dominant tourism hub in Southeast Asia.
The National Soft Power Strategy Committee in Thailand has issued a cautionary note regarding the country’s tourism industry. The committee emphasized that Thailand must not underestimate its regional competitors, especially Vietnam, which is aggressively developing tourism infrastructure. This includes not only high-speed railways but also the construction of new attractions, as well as the introduction of luxury hotel chains that elevate the destination’s appeal to affluent travelers.
At the SPLASH 2025 Soft Power Forum, Marisa Sukosol Nunbhakdi, chairwoman of the Tourism Subcommittee, addressed the pressing issue. She noted that while Thailand has remained a top destination for tourists, it cannot afford to rest on its laurels. There is an urgent need for new investment in Thailand’s tourism infrastructure, especially in man-made development projects, to ensure it retains its competitive advantage. Without such strategic investments, Thailand risks losing its edge to emerging competitors like Vietnam.
One of Vietnam’s most significant advancements is the rapid development of its transportation network. The country has invested heavily in high-speed railways, a move that promises to reduce travel times between major cities, making it easier for tourists to explore the country’s diverse attractions. This is expected to boost Vietnam’s tourism appeal, offering more efficient and convenient travel options for visitors.
In addition to transportation, Vietnam has been attracting high-end international hotel brands, further enhancing its tourism profile. Capella Hanoi, for instance, is a luxurious property designed by renowned architect Bill Bensley, reflecting the country’s growing appeal as a destination for luxury travelers. This project is part of a broader strategy to attract upscale tourism, positioning Vietnam as a rival to destinations like Thailand, which has long been known for its beach resorts and vibrant cities.
Furthermore, Hanoi is undergoing a major transformation with the construction of the Hanoi Opera House, which is expected to become a new cultural and architectural icon for the capital. The project is poised to further elevate Hanoi’s status as a top cultural destination in Southeast Asia. This, combined with other planned developments in Hanoi and Da Nang, is contributing to the rise of Vietnam as a tourism powerhouse in the region.
Da Nang, in particular, has seen significant improvements in its tourism infrastructure, including new luxury hotels, resorts, and entertainment complexes. These developments have helped transform Da Nang into one of the most popular tourist cities in Vietnam. With its growing reputation as a destination for both leisure and business travel, Da Nang is quickly becoming a strong competitor to Thailand’s popular resort areas such as Phuket and Krabi.
As Vietnam continues to develop its tourism infrastructure, Thailand faces the challenge of maintaining its appeal. While Thailand is known for its rich cultural heritage, stunning beaches, and world-class resorts, the country must continue to innovate to remain a leader in the region. The tourism industry in Thailand must look beyond traditional attractions and focus on modernizing infrastructure and creating new, unique experiences for visitors.
Thailand’s government and tourism industry leaders are now recognizing the importance of diversifying the country’s tourism offerings. The aim is to attract not only traditional tourists but also those seeking new experiences, including luxury travelers, digital nomads, and adventure tourists. Investment in infrastructure projects such as new airports, enhanced public transportation systems, and eco-friendly resorts will be essential in ensuring Thailand’s continued dominance in the tourism sector.
Moreover, Thailand’s tourism industry must adapt to the changing preferences of travelers. There is an increasing demand for sustainability, wellness tourism, and immersive cultural experiences, areas where Thailand has significant potential. The country is home to some of the world’s most beautiful beaches, ancient temples, and rich cultural traditions. By focusing on these areas and integrating modern amenities and eco-friendly practices, Thailand can stay ahead of the curve and maintain its position as a top destination.
Vying for tourism demand, Thailand is now facing competition from Vietnam which has been actively promoting its tourism with the development of infrastructure, such as high-speed trains and landscaping of iconic landmarks in major cities. The investments are helping make Vietnam an emerging challenger to Thailand, which has long led Southeast Asia in tourism.
While Thailand has long been a leader in Southeast Asia’s tourism industry, the country must acknowledge the growing competition from regional players like Vietnam. To maintain its competitive edge, Thailand must invest in new infrastructure, attract high-end international brands, and innovate in tourism experiences. With strategic investments and a focus on sustainability and unique experiences, Thailand can continue to be one of the world’s most sought-after destinations for travelers. However, the time to act is now, before other countries such as Vietnam gain further ground.
