The number of foreign visitors to Vietnam in the first eight months of this year was 11.4 million, a 46% rise from the same period last year, according to the General Statistics Office.
While visitor numbers from most Asian countries rose sharply -- the increase was 158% for China, 100% for Indonesia, 59% for the Philippines, and 32% for South Korea -- the number of arrivals from Thailand declined by 15% to 274,000.
Nguyen Dong Giang, chairman of Bangkok travel company BKT Group, said Thai tourists are increasingly preferring China over Vietnam.
Cao Ngoc Son, 34, a Vietnamese tour guide specializing in inbound tourism, said while there was a sharp increase in Thai visitor numbers after the Covid pandemic, they have fallen sharply since late 2023.
Thai tourists now favor Chinese destinations largely due to the visa waiver agreement between China and Thailand, which has been in place since March 2024, he said.
Many Thai tourists see Vietnam as "too familiar" with no new travel experiences to offer, he said.
Vietnam also lacks large shopping centers that cater to Thai tourists, who have to shop at smaller stores and markets where concerns about product quality and safety persist, he said.
To attract more Thai tourists and encourage spending, Vietnam needs reputed large shopping centers selling souvenirs and agricultural products, he suggested.
Rising airfares have also contributed to the decline.
Airfares between Thailand and Vietnam are 50-60% higher this year than in the past with fewer direct flights on offer.
Flights have yet to resume from Phuket to many Vietnamese destinations, forcing Thai travelers to transit through Bangkok, which increases both time and cost.
There is an increasing number of direct flights between Thailand and China, and a four-day tour of China only costs VND3-4 million more than to Vietnam, Son added.
"It is understandable why Thai tourists are choosing China over Vietnam."
Huynh Phan Phuong Hoang, deputy general director of leading tour operator Vietravel, said the tourism industry should organize more cultural events and festivals to appeal to Thai visitors.
Besides China, Thai tourists are also flocking to other Southeast Asian destinations such as the Philippines and Indonesia that offer new travel experiences and attractive incentives, Hoang added.
Insiders said Vietnam should also consider training more industry workers in Thai to better serve this market.
While the number of Thai-speaking tour guides is sufficient in the central region, there is a shortage in the north.
Many Thai tourist groups have to perforce rely on English-speaking guides, sometimes leading to dissatisfaction with their experiences.