Aerial landscape in Phong Nam valley, Cao bang province, Vietnam with river, nature, rice fields, beautiful destination in Northern Vietnam.
Vietnam has officially transitioned from a “hidden gem” to a strategic priority for the Indian travel trade. Once a secondary Southeast Asian option, the country is now challenging traditional hubs like Thailand and Malaysia—driven by record tourism growth, strategic destination promotion, and rapid expansion of connectivity.
Rapid Tourism Growth: Vietnam’s 2025–26 Performance
Vietnam’s tourism sector delivered a blockbuster performance in 2025, surpassing 21 million international arrivals and eclipsing pre‑pandemic peaks—a growth rate among the strongest in Southeast Asia. This sets the stage for an ambitious 25 million visitor target in 2026 as demand continues to diversify and strengthen.
2026 is already showing sustained momentum. According to the latest travel statistics, Vietnam recorded its third consecutive month with over 2 million international visitors, with arrivals through the first two months up nearly 18% year‑on‑year—highlighting continued recovery and expansion.
Indian Outbound: A High‑Growth Source Market
India Outbound is growing and it has emerged as one of the fastest‑growing long‑haul source markets for Vietnam. Official tourism data shows a **strong triple‑digit rise in Indian visitors” — and continued expansion in 2026. In the first two months of 2026 alone, Vietnam welcomed roughly 158,000 Indian tourists, marking more than 70% growth year‑on‑year.
In addition to official figures, travel trade analysis noted that Indian arrivals have risen three‑fold over the past three years, underscoring India’s transformation from an emerging to a strategic source market.
At major travel shows such as OTM Mumbai 2026, destination partners actively pitched Vietnam’s leisure, MICE, wedding and beach tourism products to Indian travel companies—highlighting sector priorities and tapping into India’s diverse traveler segments.
Expanded Connectivity and New Infrastructure
Vietnam’s appeal is underpinned by investment in aviation connectivity and major airport infrastructure—notably the Long Thanh International Airport, which completed its technical opening in late 2025 and will begin full commercial operations in mid‑2026, positioning Vietnam as a regional hub with massive capacity growth.
Direct flight options from Indian metros and Tier‑2 cities continue to expand through both full service and low‑cost carriers, making Vietnam more accessible than ever and shortening travel‑time friction for outbound operators.
Simplified and Competitive Entry Policies
Vietnam’s liberalised visa regime—including extended multi‑entry e‑visas—has lowered barriers for Indian outbound demand, helping convert interest into bookings. In addition, industry discussions have surfaced around potential longer‑term visas to attract affluent travelers, digital nomads, and repeat visitors.
Aerial view of traditional circular boats tour in hoi an's lush green waterways
Value‑Plus Proposition for Indian Tourists
Vietnam remains cost‑competitive relative to many traditional Southeast Asian leisure alternatives. Ground costs and operational rates typically sit below regional peers, allowing Indian wholesalers to offer premium experiences at accessible price points—from luxury beach resorts in Phu Quoc to cultural city stays and active itineraries. This “value‑plus” model strengthens margin flexibility for B2B sellers while boosting appeal across family, millennial and high‑yield adventure segments.
Chinese & Asian Market Diversification
Vietnam’s diversification strategy—supported by targeted promotions, visa facilitation, and multi‑market campaigns—has expanded the country’s tourism base beyond nearby Asian neighbors. Alongside traditional Asian markets like Korea and China, India is among the markets showing fastest percentage growth, making it a priority for product placement and tailored routing.
Market Insight: Product Diversity and Revenue Growth
Vietnam’s product landscape now spans segments that are highly attractive to Indian travellers:
- MICE and corporate travel, supported by new convention and event spaces.
- Destination weddings and celebrations, increasingly serviced by Indian‑friendly catering and planners.
- Bleisure travel combining business trips with leisure stays, as exemplified by technology and conference tourism (e.g., global tech events scheduled through 2026).
For the modern Indian traveller, novelty and authenticity are strong travel motivators. Vietnam’s relative freshness—compared with mature destinations like Singapore and Dubai—provides travel agents with compelling storytelling opportunities, particularly for repeat outbound segments seeking new cultural and scenic experiences.
The trajectory of the India‑Vietnam travel corridor remains highly bullish. With robust tourism growth fundamentals and strategic high‑growth drivers, Vietnam stands out as one of the decade’s fastest‑expanding international leisure and business destinations from India.
