Vietnam overtakes Thailand in Southeast Asian aviation capacity

Vietnam is rapidly expanding its aviation and tourism sectors, overtaking Thailand to become Southeast Asia's second-largest commercial aviation market. According to OAG data, Vietnam's flight capacity rose 10% year-on-year to 7.27 million seats in August, while Thailand's capacity declined by 1.7%.

This shift is driven by strong domestic demand and growing interest in destinations like Da Nang and Phu Quoc. Vietnam Airlines has reported significant growth, with consolidated revenue increasing over 28% in the first half of 2026, bolstered by an 18.8% rise in international passengers.

Sun PhuQuoc Airways is also scaling operations, launching a new Phu Quoc-Bangkok route and planning to acquire eight Airbus A330 wide-body aircraft through 2027 to connect Phu Quoc with markets in South Korea, Russia, Japan, and Australia.

Simultaneously, Vietnam's tourism industry is seeing increased popularity among European and Indian travelers. The country has already achieved approximately 56% of its annual international visitor target as of July 2026.