Why is Vietnam the new ultra-luxury destination?

If lately it seems like everyone has been to Japan and that Thailand is now experiencing a renaissance in the hearts of tourists—with its new status as a hub of Asian luxury and the viral popularity gained thanks to the latest season of The White Lotus—it is interesting to note how, away from the spotlight, Vietnam has quietly recorded record-breaking numbers over the past twelve months. Once considered a secondary destination, according to Bloomberg, it has now become the third most visited country in Southeast Asia, with 17.5 million international arrivals in 2024. Behind this extraordinary result lies a broader trend: Vietnam has recovered 98% of its pre-pandemic tourism levels, significantly surpassing Thailand and Singapore, which remain at 87.5% and 86%, respectively. In just the first two months of 2025, nearly four million international visitors have chosen to explore Vietnam, marking a 30.2% increase compared to the same period last year, according to data from the Vietnam National Authority of Tourism.

But the main turning point for Vietnamese tourism lies in its growing ability to attract high-end and ultra-wealthy tourists. The global luxury travel market reached $2.18 trillion in 2024 and, according to projections by Deputy Minister of Culture, Sports and Tourism Ho An Phong, is expected to exceed $3 trillion by 2032, as reported by the Vietnam Investment Review. In this scenario, Vietnam offers ideal conditions: UNESCO natural and cultural heritage sites, a cuisine increasingly appreciated worldwide, and above all, exclusive experiences such as the exploration of the Son Doong cave — a highly limited tour that sells out within hours each time it opens. According to Pham Hong Long, professor and head of the Tourism Department at the University of Social Sciences and Humanities in Hanoi, the key to fully capitalizing on these opportunities lies in the integrated development of culture, gastronomy, and personalized experiences. “Traditional values and innovation must merge to create exclusive and identity-rich itineraries,” he stated. Long also highlighted the importance of improving infrastructure and services — such as airports, roads, and resorts — to further attract the high-end segment.

There is no shortage of success stories. Bloomberg noted that the influx of new luxury hotels such as the Regent Phu Quoc, Capella Hanoi, and JW Marriott Hotel & Suites Saigon, along with the expansion of the Michelin Guide to the country in 2024, are helping elevate Vietnam’s image as a luxury destination. The result is a significant increase in arrivals from strategic markets, such as India, which alone saw half a million visitors in 2024 — a 297% increase compared to pre-pandemic levels. As reported by JingDaily, Mike Nguyen, founder of Ansova Travel, a luxury travel company based in Ho Chi Minh City, reported a 25% increase in international bookings in 2024 compared to the previous year and expects further growth of up to 30% in 2025. In addition to the U.S. market, India is proving particularly promising, with travelers choosing places like Phu Quoc and Ha Long for exclusive weddings and tailor-made trips.

Vietnam’s tourism boom is not just about numbers. It is the result of a targeted strategy by the central government in Hanoi, based on simplified access via new electronic visas and direct flights, along with a major boost in luxury infrastructure and the development of unique, sustainable travel offerings. With this trajectory, Vietnam is aiming to overtake all the historically dominant Asian travel destinations, which are currently facing overtourism issues — including neighboring countries. What makes Vietnam particularly competitive is its still relatively “new” image in the eyes of global tourism: a less predictable, less crowded destination that offers an appealing alternative to places that may now feel overexposed. Unlike already over-commercialized locations — as highlighted by JingDaily — the country manages to strike a balance between modernization and cultural identity, offering experiences that range from wellness and golf tourism to ecological and cultural travel. The question remains whether the country will be able to maintain a sustainable balance between catering to the global 1% and supporting the local population. Places like Bali and Thailand started their tourism ascent in much the same way, only to become havens for expats and mass tourism.