The country recorded the highest growth rate among the region’s top 10 markets, with a 121% increase in passenger numbers over the decade.

IATA attributes this growth to Vietnam’s robust economic performance and rising popularity as a tourist destination. From 2000 to 2024, the country’s GDP expanded at an average annual rate of 6.2% and reached 7.1% growth in 2024 alone, one of the highest in the region.

International travel to Vietnam has surged, with seven of the top 10 source markets more than doubling in volume from 2014 to 2024. Notably, travel from India grew tenfold, driven by stronger bilateral trade, growing 11% annually over the past decade to reach US$15 billion in 2024.

The expansion of direct flight routes and simplified visa procedures, especially between Indian cities like New Delhi and Mumbai and Vietnamese cities such as Ho Chi Minh City and Hanoi, have further boosted inbound tourism.

Travel from the Republic of Korea (RoK) has also seen remarkable growth, increasing more than fivefold over the decade. In 2024, the RoK remained Vietnam’s largest source of international tourists, more than double the number from China, and the second largest source of foreign direct investment.

Despite these gains, Vietnam’s 107% domestic air travel growth still lagged behind international traffic, which grew by 150% over the same period. In fact, domestic traffic in 2024 was 24% below 2022 levels, when recovery from the pandemic had peaked. The shortfall is partly due to capacity limitations, with some aircraft grounded due to engine issues and many being reassigned to meet rising international demand.

Meanwhile, Vietnam’s air cargo services have also expanded, with revenues climbing over 30% year-on-year in 2024. However, passenger services continue to dominate airline revenues, accounting for 53% to 71% of total earnings for Vietnamese carriers.

A potential concern is a proposed 46% reciprocal tariff on Vietnamese exports to the United States, which could affect air cargo volumes. In 2024, exports to the US amounted to US$119.5 billion, comprising 30% of Vietnam’s total exports and representing a quarter of its GDP.

Looking ahead, Vietnam’s growing travel demand and thriving tourism industry are expected to sustain the long-term momentum of its aviation industry.

Da Nang joins Asia-Pacific's largest MICE tourism fair

VOV.VN - A delegation of travel firms from the central coastal city of Da Nang made its debut at the Asia-Pacific Incentives & Meetings Event (AIME 2025) in Melbourne, Australia, from February 10 to 12.