Vietnam Surpasses Thailand as the Top Destination for Chinese Tourists
Fundacion Rapala – Thailand, once the top choice for Chinese tourists, is now losing ground. Many travelers, like Hu Jia from Sichuan, have chosen Vietnam instead of Thailand’s iconic beaches and ornate temples. Concerns about safety in Thailand have fueled this shift, leading Hu and her family to book a two-week journey across Vietnam.
Personal Experience of Chinese Tourists in Vietnam
Hu Jia, together with her husband and two sons, explored Vietnam in July 2025. They traveled from Hanoi to Danang aboard a luxury sleeper bus, spending less than $3,000 (around Rp49 million). Hu described Vietnam as “unique and untouched,” expressing a desire to return in the future. Her story reflects a broader movement of 3.5 million Chinese tourists contributing to Vietnam’s record-breaking year in tourism.
Tourism Records Broken in Vietnam
Vietnam has welcomed nearly 14 million foreign visitors in 2025, marking a significant milestone. Chinese tourists, the largest source of arrivals, surged by 44% year-on-year through August. This sharp increase not only boosted Vietnam’s standing in Southeast Asia’s tourism market but also solidified its reputation as an emerging favorite for international travelers.
Decline of Chinese Arrivals in Thailand
In contrast, Thailand has seen Chinese arrivals plummet by 35% this year. Reports of online fraud centers and the high-profile kidnapping of a Chinese actor earlier in 2025 have damaged Thailand’s image as a safe destination. These concerns have significantly diverted Chinese tourist flows to Vietnam and neighboring countries.
Economic Impact of the Tourism Shift
The decline in Thailand’s popularity translates into an estimated $3.5 billion in lost revenue. Much of this spending is now being absorbed by Vietnam and other Southeast Asian markets. According to China Trading Desk, which monitors Chinese travel spending, this trend represents a structural shift in the region’s multi-billion-dollar tourism industry.
The Rise of Independent Chinese Travelers
Another factor behind this trend is the rise of independent Chinese travelers who seek authentic and fresh experiences. Unlike traditional group tours, this new wave of tourists values unique cultural encounters. Subramania Bhatt, CEO of China Trading Desk, notes that Vietnam provides a sense of authenticity and freshness that appeals strongly to these travelers.
Malaysia Also Benefits from the Shift
Malaysia has also seen benefits from this shift, with Chinese arrivals rising by 35% in the first half of 2025. Flight capacity from China to Malaysia increased nearly 50%, while the country’s visa-free entry policy for Chinese nationals and a weaker Ringgit made it even more attractive. Hotels have already reported stronger demand and higher occupancy rates compared to last year.
Regional Competition in Southeast Asia Tourism
The competition among Southeast Asian nations for Chinese tourists is intensifying. Vietnam, by positioning itself as an affordable yet culturally rich destination, is capturing a larger market share. Meanwhile, Malaysia is leveraging favorable exchange rates and entry policies. Thailand, once dominant, faces the challenge of restoring its reputation and regaining the trust of Chinese travelers.