Vietnam’s tourism industry is at a turning point. While it is a driving force behind economic growth, earning foreign currency and creating jobs, it is also facing challenges such as a lack of unique experiences and a limited talent supply. However, these gaps also present new business opportunities for foreign investors.

Trang An Landscape Complex, Ninh Binh Province (UNESCO World Heritage Site)

Source: Vntrip

The magnitude of potential

Vietnam boasts over 3,000 km of coastline and diverse topography, making it ideal for a variety of tourism styles, including beach resorts, ecotourism, and mountain climbing. According to Expat Insider 2024, Vietnam ranks first in the world for the lowest cost of living for expats[1]. Tourists can also enjoy affordable food and transportation.

Number of international and domestic tourists in Vietnam (millions)

Source: VNAT , TITC

Infrastructure development is also progressing. Line 1 of the Ho Chi Minh City subway opened at the end of 2024[2]. Major airports continue to expand and plans for the North-South Expressway are also progressing. The number of international tourists is expected to reach 22 to 23 million by 2025.

Constraints create opportunities

However, there are still many persistent challenges. First, many tourism products are heavily focused on traditional resorts and do not adequately address new demands such as wellness, music, and volunteer tourism. The case of Thai international brand Chiva-Som, which is supporting the operation of a wellness center in Da Lat, is a typical example of investment that has taken advantage of this gap. Tours that combine music concerts and community activities also show potential demand.