Vietnam and India Strengthen Economic Ties with New Direct Flight Routes Connecting Key Cities and Boosting Tourism and Business Opportunities

Dydd Iau, Mai 8, 2025

Vietnam Airlines has launched a new direct flight route connecting Hanoi, the capital of Vietnam, with Bengaluru, one of India’s key technology and innovation hubs. This marks a significant expansion of the airline’s services, with another direct route to Hyderabad slated to begin on May 7, 2025. Together, these new additions bring the total number of direct routes between the two countries to six, offering enhanced connectivity and increased opportunities for business, tourism, and cross-border trade. The new flights are especially beneficial for professionals, businesses, legal experts, and investors seeking to strengthen ties in one of Asia’s most dynamic corridors.

Route Expansion and Operational Highlights

The latest addition to Vietnam Airlines’ network consists of four weekly round-trip flights operating between Hanoi and Bengaluru. The airline uses its Airbus A321 aircraft for this service, providing a comfortable and efficient travel experience. The inaugural flight, VN983, carried over 130 passengers from Hanoi to Bengaluru, while the return flight, VN982, touched down in Hanoi with more than 160 passengers. The forthcoming Hanoi-Hyderabad route will operate three times a week. This expansion complements the existing services from Vietnam Airlines connecting major Indian cities like New Delhi, Mumbai, and Bengaluru to Hanoi and Ho Chi Minh City, significantly enhancing the airline’s footprint in India.

With over 3,200 flights and more than 501,000 passengers traveling between Vietnam and India, the airline’s presence has been growing steadily. The new routes are a reflection of the growing demand for direct connections, driven by increased business and leisure travel. These direct flights not only reduce transit times but also provide easier access to these burgeoning markets.

Boosting Tourism and Strengthening Connections

Vietnam has become a significant tourism destination for Indian travelers, with the country ranking among the top 10 source markets for visitors. In 2024 alone, Vietnam welcomed over 500,000 Indian tourists, marking an astounding 297 percent increase from pre-pandemic levels. This growth is attributed to the simplification of visa procedures, a rising interest in Vietnam as a vacation and wedding destination, and expanded flight services. Popular destinations like Phu Quoc, Ha Long Bay, and Da Nang are drawing increasing numbers of Indian tourists, thanks to their scenic beauty, resort offerings, and culinary delights.

Da Nang, in particular, has seen a massive surge in Indian visitors, with numbers skyrocketing to over 222,000 in 2024. In comparison to 2019, the number of Indian tourists visiting Da Nang has grown more than thirteenfold. The increase in direct flights, along with targeted tourism promotions, has positioned Da Nang as one of the top five international destinations for Indian travelers.

Vietnam’s overall tourism recovery has also been impressive. In 2024, the country attracted 17.5 million international tourists, surpassing Singapore and ranking behind only Thailand and Malaysia in Southeast Asia. With a recovery rate of 98 percent of its pre-pandemic tourism volume, Vietnam has outpaced its regional peers, including Thailand (87.5 percent) and Singapore (86 percent). This rebound is bolstered by the growing presence of global luxury brands and the country’s inclusion in the Michelin Guide.

Economic and Business Implications

The new direct flight routes to Bengaluru and Hyderabad are expected to foster greater business collaboration between Vietnam and India. Bengaluru is home to numerous global IT and R&D companies, while Hyderabad has a thriving life sciences and startup ecosystem. The new flights will reduce travel time and costs, making it easier for professionals and businesses to engage in cross-border activities, from IT services and digital trade to education and fintech.

For Indian companies, the enhanced connectivity offers an easier route to expand into the ASEAN markets. Vietnam’s competitive manufacturing sector, young workforce, and participation in key trade agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) make it an attractive destination for investment and collaboration. On the other hand, Vietnamese businesses stand to benefit from the vast Indian market, especially in sectors such as food exports, electronics, and tourism marketing. The new air routes are a strategic move to strengthen bilateral trade relations and capitalize on mutual economic interests.

Legal professionals, investors, and consultants who assist with trade, incorporation, or joint ventures will also find the improved connectivity advantageous. The ease of travel will facilitate site visits, business negotiations, and the smooth execution of deals, especially in key sectors like e-commerce, logistics, hospitality, and education.

Regulatory and Institutional Support

The growth of these direct routes is a product of strong bilateral cooperation between the governments of Vietnam and India. Both the Civil Aviation Authority of Vietnam and the Ministry of Civil Aviation of India have worked together to ensure the timely approval of flight schedules and frequencies. In addition, Vietnam’s National Authority of Tourism (VNAT) and the Ministry of Culture, Sports, and Tourism have collaborated with Indian tour operators and Vietnamese embassies to promote Vietnam’s tourism offerings.

In terms of entry requirements, Vietnam has made it easier for Indian nationals to visit, with access to electronic visas (e-visa) and simplified arrival procedures. For Indian businesses, the Enterprise Law (Law No. 59/2020/QH14) and supporting regulations have streamlined the process for setting up representative offices and joint ventures, making it easier for Indian firms to explore and enter the Vietnamese market.

Casgliad

Vietnam Airlines’ new direct flights from Hanoi to Bengaluru and Hyderabad are a game changer for both tourism and business relations between Vietnam and India. The expanded routes offer unparalleled connectivity that supports a range of economic activities, from IT and digital trade to tourism and investment. The growth of tourism, especially from India, underscores the potential for further collaboration between the two countries in a variety of sectors. As both nations continue to strengthen their ties, the future of bilateral trade, investment, and tourism looks exceptionally promising.