An overview of Vietnam's tourism over the past 20 years.

The development of tourism in Vietnam (2005 - 2025)

From humble beginnings in the early 1990s, when I first set foot in Vietnam and the country only welcomed about 250,000 international tourists, the tourism industry has risen to become a vital pillar of the national economy. This achievement is not only due to strong support from the Government and strategic policy reforms, but also fueled by the dynamic dynamism of the market.

By 2019, the number of international visitors had surged to 18 million, while domestic tourism reached 85 million. The period from 2015 to 2019 saw an average annual growth rate of 22.7% for international visitors, among the highest in the world. The Covid-19 pandemic created unprecedented challenges, but Vietnam's reopening in March 2022 – becoming the first country in Asia to reopen its borders – coupled with the strong performance of the domestic market, has fueled a rapid recovery for the tourism industry. By 2024, the number of international visitors is projected to reach 17.6 million, nearly reaching pre-pandemic levels, while domestic tourism is expected to surpass 100 million. By 2025, Vietnam's tourism sector is expected to welcome approximately 22 million international visitors and serve 140 million domestic tourists.

The vitality of Vietnam's tourism industry is not only reflected in the number of visitors, but also in its economic contribution and job creation. In 2019, tourism contributed more than 10% to GDP with revenue exceeding US$32 billion. By 2024, this figure is projected to increase to US$39.5 billion, creating jobs for over 5.96 million workers. After Covid-19, Vietnam led ASEAN in reopening its borders, with domestic tourism as the main driver, while international visitor numbers recovered rapidly.

Rich in tourism products and services

Vietnam's tourism industry is not only growing in terms of visitor numbers but also making its mark thanks to the richness and diversity of its products and services. The tourism ecosystem is opening up countless attractive experiences, from pristine beaches in Phu Quoc and Nha Trang to majestic mountains in Sa Pa and Tuyen Quang, or UNESCO World Heritage sites like Ha Long Bay, Hoi An, and Hue. However, strengthening management and control is necessary to avoid overcrowding at some popular destinations. Simultaneously, cultural and heritage tourism, with its ancient cities, traditional craft villages, unique festivals, and culinary experiences, remains a core attraction for tourists.

The trend towards sustainable development is also becoming increasingly evident with ecotourism and community-based tourism, ranging from eco-lodge and rural homestay models to green tourism, contributing to improving local livelihoods. In addition, urban tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) in Hanoi and Ho Chi Minh City, with their high-end hotels, golf courses, and modern event facilities, continue to open opportunities for international events, although a "one-stop shop" mechanism and clear incentive policies are still needed to enhance competitiveness with neighboring countries like Thailand and Singapore.

Equally appealing, wellness experiences and adventure activities such as wellness retreats, in-depth cultural workshops, and adventure tours are attracting a large number of young and high-income tourists, demonstrating that Vietnam's tourism industry is gradually meeting the diverse and increasingly sophisticated needs of the market.

Culture, identity, and tourism management

The success of Vietnam's tourism industry is closely linked to its rich cultural and historical depth. While management policies demonstrate ambition and determination, limitations remain in both planning and implementation, preventing the industry from fully realizing its potential.

The 2017 Tourism Law identifies tourism as a "key economic sector," stimulating investment, innovation, and community participation. The master plan for the period 2021-2030 aims to welcome 35 million international tourists and 160 million domestic tourists by 2030, creating 10.5 million jobs, while emphasizing green growth, digital transformation, and sustainable development.

In an effort to protect the environment, Vietnam is committed to eliminating single-use plastics in tourism by 2030 and promoting ESG (Environmental, Social, and Governance) standards. In addition, strategic investments in heritage preservation, culinary tourism development, and festivals have contributed to enhancing Vietnam's image on the world tourism map, transforming each trip from just an experience into a journey of discovering a rich and distinctive national culture.

Changes in tourist behavior

Vietnamese and international tourists are showing clear shifts in their travel preferences, reflecting new needs and trends. Domestic tourists are increasingly favoring short trips lasting 3-4 nights, prioritizing family experiences, and are willing to spend more on mid-range options. Destinations like Da Nang, Sa Pa, and the Mekong Delta are becoming top choices thanks to their combination of natural beauty and unique cultural experiences.

The international tourist market remains primarily driven by Asian countries such as South Korea, China, Japan, and Taiwan. Simultaneously, visitor numbers from Europe and North America are increasing thanks to favorable visa policies and improved air connectivity. However, visa exemptions for certain countries like Australia, Canada, New Zealand, and the United States are still limited, preventing these markets from reaching their full potential.

Accordingly, the trend towards sustainable tourism is becoming increasingly evident, with 77% of Vietnamese tourists now prioritizing environmentally friendly accommodations and choosing to travel during off-season to minimize their ecological impact. Furthermore, digital transformation is shaping travel habits, as tourists increasingly rely on online platforms to search for information, book services, and plan their itineraries conveniently and quickly.

Forecast for Vietnam's tourism industry (2025 - 2035)

Vietnam's tourism industry is poised for a strong surge in growth over the next decade. The market is projected to reach US$79 billion by 2035, creating jobs for over 7.7 million workers and contributing nearly 8% to GDP. Driving trends include experiential tourism, sustainability, and digitalization, along with significant investment in infrastructure such as airports, metro systems, and technology (AI, online platforms), which will enhance international competitiveness.

However, challenges remain, particularly in sustainable development, infrastructure upgrading, and policy adaptability – key factors for the stable and long-term growth of the tourism industry. To address these issues, experts have offered a series of strategic recommendations: shortening entry procedures, expanding the list of visa-exempt countries, and researching the implementation of a retirement visa; strictly controlling visitor numbers at heritage sites to avoid overcrowding; increasing the national tourism promotion budget to effectively compete with leading destinations in the region such as Thailand; facilitating the entry of international artists and performing groups to Vietnam; and building a "one-stop shop" MICE mechanism with attractive incentive packages to promote the development of international conferences, seminars, and events.

Over the past 20 years, the overall tourism landscape of Vietnam has witnessed remarkable growth, product diversification, and a strong transformation, making the country one of Asia's leading destinations. With a sustainable development orientation, focusing on authentic experiences and overcoming existing limitations, Vietnamese tourism has the potential to achieve even greater progress in the next decade, continuing to be a vivid testament to the resilience and innovation of the entire industry.

Additional information about the author:

Kenneth Atkinson, founder of Grant Thornton Vietnam and Vice Chairman of the Vietnam Tourism Advisory Council, has been in Vietnam since 1989 and has been involved in the country's economic and tourism development for over 35 years. He previously served as Chairman of the British Chamber of Commerce in Vietnam and was awarded the Order of the British Empire (OBE).

After more than three decades living in Vietnam, he became a Vietnamese citizen under the name Pham Kien Son, possessing a personal identification number ending in 000001 – a testament to his deep connection and commitment to his second homeland. With his extensive experience, he frequently shares insightful perspectives on the transformation of Vietnam's tourism industry through various stages.

In September 2025, Mr. Atkinson released his memoir.Never Say NoThis chronicles his journey from a small town in England to building a successful career and leaving a lasting mark in Vietnam. With a mindset based on perseverance, respect for culture, and strategic vision, he has become a bridge between international knowledge and the development of Vietnamese businesses.

Phuong Thao is an editor at Travellive magazine. She is passionate about traveling and enjoys capturing moments with her camera in every place she visits. Travel, art, and lifestyle are Phuong Thao's favorite writing topics.

Text: Kenneth Atkinson - Photos: Various sources