With over 30% of India’s population comprising middle-class and affluent individuals, Vietnam’s tourism industry is focusing on tapping into this high-potential market.

Record-breaking recovery and potential

In 2024, Vietnam welcomed over 501,000 Indian tourists, a significant increase from approximately 169,000 in 2019.

This impressive recovery rate makes India the top-performing inbound market for Vietnam, with a 297% rebound compared to other major markets such as China (64%), Japan (75%), and South Korea (106%).

According to Hoang Nhan Chinh, Secretary-General of the Vietnam Tourism Advisory Board (TAB), Indian tourists have diversified Vietnam’s international visitor base, especially as recovery from traditional markets like China and Japan remains slow.

Indian visitors are drawn to destinations like Hanoi, Ha Long Bay, Danang, and Ho Chi Minh City. Emerging hotspots such as Nha Trang and Sa Pa are also gaining popularity, highlighting the need for enhanced promotion of these regions.

Despite growth, Vietnam lags behind competitors like Thailand in attracting Indian tourists. In 2024, Thailand welcomed 2 million Indian tourists, four times Vietnam’s figure, partly due to visa-free policies, extended stays of up to 60 days, and a robust network of over 200 direct flights to India.

In comparison, Vietnam has 56 direct flights to six major Indian cities, with plans to add 14 more routes in 2025. However, former Vietnamese ambassador to India, Ton Sinh Thanh, emphasized that this number is insufficient for a market of 1.4 billion people.

Addressing barriers to growth

While Indian tourists appreciate Vietnam’s friendliness and natural beauty, surveys reveal that 80% face language barriers, and high service costs deter repeat visits.

To capitalize on India’s growing middle-class population, expected to rise from 33% in 2022 to 46% by 2030, tourism experts recommend targeted strategies, including:

Cultural alignment: Increasing vegetarian and Indian cuisine options by encouraging Halal certifications for restaurants and training staff to respect cultural and religious norms.

Cost transparency: Ensuring transparent pricing at tourist sites and hotels while offering tailored travel packages that provide optimal value.

Service diversification: Expanding beyond leisure tourism to include business events, MICE (Meetings, Incentives, Conferences, and Exhibitions), fairs, and destination weddings.

A notable example of success is Sun Pharmaceutical, India’s largest pharmaceutical group, which brought over 4,500 employees to Vietnam in August 2024 for a corporate event.

To sustain growth, Vietnam must improve visa policies and expand direct flights to India. TAB has called for visa-on-arrival options and eventually bilateral visa exemptions to simplify travel for Indian visitors.

Investment in marketing campaigns highlighting Vietnam’s unique experiences, from cultural heritage to luxury retreats, is crucial. Developing infrastructure and training personnel to cater to Indian tourists’ preferences can further enhance their travel experiences.

As Vietnam works to attract this affluent market segment, it must address key challenges while showcasing its potential as a premier destination in Southeast Asia.

Ngoc Ha