Brian Jeffrey
Southeast Asia’s Growing Interest in Indian Travelers
Vietnam is eager to connect with India’s burgeoning middle-class and affluent population, which makes up over 30% of its demographics.
In 2024, the country saw an impressive turnout of over 501,000 tourists from India, a stark contrast to about 169,000 in 2019.
This surge highlights India as the leading source of tourists for Vietnam, achieving a remarkable recovery rate of 297%. This outpaces other key markets like China (64%), Japan (75%), and South Korea (106%).
Hoang Nhan Chinh, Secretary-General of the Vietnam Tourism Advisory Board (TAB), noted that Indian tourists have added much-needed diversity to Vietnam’s international visitor demographic, especially as traditional markets such as China and Japan recover slowly.
Popular destinations among Indian tourists include Hanoi, Ha Long Bay, Danang, and Ho Chi Minh City, with emerging attractions like Nha Trang and Sa Pa also on the rise, suggesting a need for better promotion of these areas.
Nonetheless, Vietnam still trails behind Thailand in appealing to Indian tourists. Thailand welcomed around 2 million visitors from India in 2024, four times the number encountered by Vietnam. This discrepancy is partly attributed to Thailand’s visa-free entry, longer stay allowances of up to 60 days, and a solid flight network with over 200 direct connections to India.
In contrast, Vietnam currently operates 56 direct flights to six major Indian cities, with intentions to add 14 new routes by 2025. However, former Vietnamese ambassador to India, Ton Sinh Thanh, remarked that even this expansion isn’t enough for a market of 1.4 billion people.
While the warm hospitality and stunning landscapes of Vietnam are well-received by Indian travelers, surveys indicate that 80% encounter language issues, and escalating service costs dissuade them from returning.
To harness the potential of India’s expanding middle class—projected to grow from 33% in 2022 to 46% by 2030—tourism authorities suggest tailored strategies, including:
- Cultural Sensitivity: Enhance vegetarian and Indian food options, with restaurants encouraged to pursue Halal certifications and staff trained in cultural respect.
- Cost Clarity: Implement clear pricing at tourist sites and hotels, offering customized travel packages for better value.
- Service Variety: Broaden offerings beyond leisure tourism to encompass business events, MICE (Meetings, Incentives, Conferences, and Exhibitions), fairs, and destination weddings.
An illustrative success is Sun Pharmaceutical, India’s largest pharmaceutical entity, which hosted over 4,500 employees in Vietnam for a corporate event in August 2024.
For continued growth, Vietnam must refine its visa regulations and increase direct flights to India. TAB advocates for options like visa-on-arrival and ultimately, mutual visa exemptions to ease travel for Indian visitors.
It’s also vital to invest in marketing campaigns that highlight Vietnam’s unique offerings, from cultural landmarks to luxury accommodations. Enhancing infrastructure and training personnel to better serve Indian tourists’ needs can elevate their overall experience.
As Vietnam aims to draw this thriving market, it must tackle existing challenges while promoting its appeal as a premier Southeast Asian destination.
