Published on
August 18, 2025
In an unexpected turn of events, Vietnam has emerged as the fastest-growing outbound travel destination for Australian tourists. As of June 2025, the Southeast Asian nation has seen a remarkable 27.5% increase in travel, making it the top destination for short-term resident returns from Australia. This growth is particularly notable given that Japan, a long-time favorite of Australian travelers, has traditionally dominated the outbound travel market. According to the latest data from the Australian Bureau of Statistics (ABS), Vietnam’s surge outpaces other destinations, including China and Japan, highlighting the growing interest in this culturally rich and dynamic country.
Vietnam’s Rise in Popularity Among Australians
Over the year leading to June 2025, the volume of Australian visitors to Vietnam reached 31,840, marking a significant jump from previous years. This surge places Vietnam as one of the top 10 destinations for Australian travelers. The increase in short-term resident returns demonstrates the increasing appeal of Vietnam, with its rich cultural offerings, beautiful landscapes, and growing tourism infrastructure drawing more and more Australians each year. The nation has quickly established itself as an essential market in the Southeast Asia travel sector for Australia.
This growth was propelled by several factors, including enhanced air connectivity, competitive travel packages, and the familiarity that Australian tourists have with the country due to Vietnamese communities already well-established in Australia. Additionally, the growth was supported by the opening of new routes and improved travel conditions, making Vietnam a more accessible option for travelers.
Key Competitors: China and Japan’s Travel Trends
Vietnam’s growth comes at a time when China and Japan have also seen significant changes in travel patterns. China reported a 26.8% increase in outbound travel, placing it just behind Vietnam in terms of growth. Japan, while still popular, registered a 10.5% increase, ranking third in growth but well behind the explosive rise of Vietnam.
While both China and Vietnam benefit from the VFR (Visiting Friends and Relatives) market, where Australian nationals visit family members residing in these countries, the conditions surrounding China’s reopening post-pandemic and Vietnam’s more established tourism offerings have contributed to the noticeable gap between them and other destinations. The increased air connectivity between Australia and both Vietnam and China, as well as the expansion of airlines like Shenzhen Airlines into the Melbourne market, also fueled the growth seen in these two countries.
Australia’s Top 10 Outbound Travel Destinations in June 2025
In June 2025, Indonesia led the way with the highest number of resident returns at 149,260, largely thanks to Bali being a popular holiday hotspot. New Zealand followed with 80,960 visitors, maintaining its strong position as a preferred destination for Australians. Other destinations in the top 10 included the United Kingdom, Japan, the United States, and Thailand, each of which saw steady visitor numbers.
Vietnam, which ranked ninth on this list, is rapidly catching up with the traditional favorites, signaling a shift in the preferences of Australian travelers. The ABS data for June also highlights that countries like Italy, Fiji, and China experienced minor fluctuations, indicating the complex dynamics at play within the outbound travel market.
Understanding the Growth Drivers for Vietnam
Several key factors have been identified as driving the growth of Vietnamese tourism for Australians. These include the cultural appeal of cities like Ho Chi Minh City and Hanoi, as well as the affordability of travel within the country. Moreover, the ease of access to destinations such as Hoi An and Halong Bay, alongside the growing reputation of Vietnamese cuisine and hospitality, has increased Vietnam’s allure among Australian travelers.
The travel trends also suggest that Vietnamese communities in Australia play a significant role in boosting visitation, with many Australians traveling to visit relatives and explore the country’s rich heritage. The close cultural ties between both nations have created a solid foundation for tourism growth, providing Australians with a familiar yet exciting destination.
Impact of Increased Air Connectivity
Increased air travel options between Australia and Vietnam have further contributed to the rising interest in the country. Airlines, including both Australian and Vietnamese carriers, have expanded their services, providing more direct flights and competitive pricing. This ease of access has made Vietnam a more attractive and convenient option for Australians looking for both short getaways and longer stays.
Growth of Short-Term Resident Returns and Broader Trends
Vietnam’s remarkable growth is part of a broader trend of increasing short-term resident returns for Australians. For instance, total outbound trips from Australia reached 914,080 in June 2025, a 5.8% increase from the previous year. This marks an impressive recovery from the pandemic and showcases Australians’ eagerness to travel abroad once again. In particular, the states of New South Wales, Victoria, and Queensland recorded the highest number of outbound trips, which were largely driven by popular holiday destinations such as Bali and New Zealand.
Travel to Other Popular Destinations
While Vietnam and China have seen significant growth, other destinations like Indonesia, New Zealand, Thailand, and the United States remain consistent in their appeal to Australian tourists. Countries like the United Kingdom and Japan also continue to attract large numbers of travelers, albeit at a slower growth rate. For example, Japan saw a healthy 10.5% increase in travel, while Thailand experienced a slight year-on-year gain of 3.2%.
Meanwhile, some destinations like Italy and Fiji recorded minor decreases in visitor numbers, highlighting the shifting preferences of Australian travelers.
The Future of Australia’s Travel Market
The latest statistics highlight a shift in Australian travelers’ preferences, with Vietnam making its mark as the fastest-growing outbound destination. While China and Japan remain key markets, Vietnam’s affordability, cultural appeal, and strong community ties with Australia have placed it firmly in the spotlight. As the tourism industry continues to recover and expand, it’s clear that Southeast Asia, with Vietnam at the forefront, will continue to be a major player in the global travel landscape for Australians.
