Vietnam’s International Arrivals Projected to Reach 20-25 Million in Coming Years

Vietnam’s tourism sector is experiencing remarkable growth, with international arrivals expected to reach 20-25 million annually in the coming years. The country welcomed 14 million international visitors in the first 10 months of 2024, and forecasts suggest this figure will climb to 18 million by year-end, according to IHG Hotels & Resorts.

Rajit Sukumaran, Senior Vice President and Managing Director of East Asia-Pacific at IHG, highlighted the significance of this recovery: “Vietnam’s tourism has fully rebounded to pre-pandemic levels, and the demand for travel to Vietnam continues to grow strongly. The country is positioned as one of the most attractive destinations in the region.”

Key drivers of Vietnam’s tourism growth include: Visa Reforms: Simplified visa policies to attract more international visitors; Improved Connectivity: Expansion of direct air routes to key global markets; Innovative Offerings: Development of diverse tourism products that appeal to a broader audience.

Sophie Dao, Senior Partner at GBS – Global Business Services LLC, which has supported many international investors in Vietnam, commented: “Vietnam’s recovery and growth in tourism are not only encouraging for the hospitality sector but also create tremendous opportunities for foreign investment. The surge in international arrivals directly supports investments in infrastructure, luxury hospitality, and travel-related services. Vietnam’s proactive reforms, especially in visa policies and market accessibility, have made it easier for international investors to explore and capitalize on this vibrant market.”

Vietnam continues to gain international recognition as a top travel destination. Recently, Best Diplomats, a New York-based diplomatic training organization, ranked Vietnam 8th among Asia’s most attractive and safe destinations. Additionally, Travel Off Path identified Vietnam as one of Asia’s premier travel destinations, and Time Out included Vietnam as one of the “9 Safest Destinations in the World for Female Solo Travelers”, the only representative from Southeast Asia.

Despite the positive momentum, challenges remain in addressing the needs of luxury travelers. Vivek Bhalla, Managing Director of Southeast Asia and Korea at IHG, noted that Vietnam still lacks sufficient high-end accommodations.

To fill this gap, IHG is introducing two new luxury and lifestyle brands to Vietnam, IHG is also strengthening its presence across other segments.

Investment Opportunities and Growth Prospects

With the anticipated growth in tourism, Vietnam is also emerging as a lucrative market for international investors. Sophie Dao added: “Vietnam’s tourism growth isn’t happening in isolation. It’s a testament to the country’s overall economic dynamism and commitment to being an attractive destination for both visitors and investors. Sectors such as real estate, luxury hospitality, and entertainment are seeing significant interest from international investors, facilitated by advisory firms like GBS.”

IHG, for instance, plans to double its footprint in Vietnam, growing its portfolio from 16 hotels (4,800 rooms) to over 40 hotels (12,000 rooms) in the coming years.

“With Vietnam’s robust tourism potential, we are confident in scaling our operations across all market segments,” said Mr. Bhalla.

The continued expansion of the hospitality and tourism industries signals Vietnam’s enduring appeal as a global travel and investment destination.