Ben Thanh emblematic market of Ho Chi Minh City - Mr Linh's AdventuresIntroduction
Southeast Asia, once considered the golden promise of an unlimited journey where $20 a day is enough, still holds its reputation as an ultra-affordable land. However, this perception is now facing increasing complexity. With global inflation, evolving currencies, and the impact of mass tourism, are Vietnam and its neighbors still the paradise for budget travelers?
The answer is yes, but this affordability now requires accepting a level of comfort that many travelers are no longer willing to compromise on.
The backpacker budget myth: Where does Vietnam stand?
For the most
budget-conscious travelers, Vietnam ranks very favorably in Southeast Asia, often just behind Indonesia or Cambodia in terms of affordability. The Land of the Dragon is undeniably one of the cheapest for basic accommodation. A bed in a dormitory can be negotiated around $5 US.
| Country |
Average cost of a bed in a dormitory (USD) |
Average cost of a budget hotel (USD/person) |
| Indonesia |
Approx. 8$ |
Approx. 5$ |
| Vietnam |
Approx. 5$ |
Approx. 6$ |
| Cambodia |
Approx. 6$ |
Approx. 7$ |
| Laos |
Approx. 7$ |
Approx. 10$ |
While Indonesia and Cambodia are not far behind in terms of accommodation, the overall daily cost tells a different story.
| Country |
Minimalist budget (Street Food & dorm) |
Comfortable budget (3* Hotel & varied meals) |
| Vietnam |
$40 to $50/day |
$50 to $100/day |
| Cambodia |
$30 to $40/day |
$40 to $80/day |
| Thailand |
$50/day |
$80 and above/day |
Kayaking, a must-do activity in Vietnam - Mr Linh's Adventures
While it is possible to maintain a minimalist budget in Vietnam ($40-50 US per day), travelers must be realistic about the impact of certain expenses.
Quality accommodation: The gap between low-cost (dorm at $5 US) and mid-range is significant. A double room in a 3-star hotel often requires $40 to $60 per night.
The "Big Ticket Items": Major excursions (like a cruise in Ha Long Bay) or major entrance fees can blow the budget. A single trip to Ha Long Bay can cost the equivalent of five days of street food.
Cambodia, the real surprise: Cambodia proves to be more affordable than Vietnam on several fronts (basic accommodation, local transport). However, the fixed price of the Angkor pass ($37 US for one day) makes visiting major attractions more expensive than a week of Pho.
In the world-famous Halong Bay, Lan Ha stands out as a peaceful and secluded destination - Mr Linh's AdventuresReality: Inflation and the impact of "cheap tourism"
It is the total daily budget and the qualitative aspects where the myth of "easy and cheap travel" begins to crack. The $20 a day myth has indeed taken a hit.
A realistic daily budget for a traveler seeking balance (varied meals, comfortable buses, some activities) now ranges between $35 and $50. This increase is due to the pressure on tourist resources, rising labor costs, and sector-specific inflation. The inflation rate related to tourism in Vietnam remains significant, hovering around 6.8% in 2025.
While street food remains incredibly affordable (Pho often costs less than $2 US), the rest of the services have caught up with inflation. Domestic flights, boutique hotels, and major excursions are no longer bargains. Furthermore, the cost of tourist living is rising in major cities (Hanoi, Ho Chi Minh City) and developed islands (Phu Quoc), forcing travelers to venture to rural provinces to find the prices of yesteryears.
Cheap travel often makes you miss the best immersive experiences - Mr Linh's AdventuresThe price of "even cheaper": Incivility and mediocracy
The aggressive pursuit of rock-bottom prices has created a vicious circle. This pricing success attracts tourists who behave disrespectfully and destructively.
Incivility is the most visible manifestation of this trend: iconic places like Bui Vien in Ho Chi Minh City have become the stage for behaviors (drugs, nudity, drunkenness) completely inappropriate and contrary to local cultural norms, illustrating some travelers' tendency to "do abroad what they would never do at home."
This mass tourism, often restricted to quick circuits (for example, 10 days to cross the country), favors superficial consumption of sites (like temple selfies) at the expense of true immersion. This demand for ultra-cheap services leads to the proliferation of party hostels or standardized tourist services, sacrificing authenticity and tranquility. The traveler finds themselves trapped in a prefab and noisy circuit.
Finally, haggling excessively, driven by the desire to save a few cents, puts unbearable pressure on small local merchants and turns exchanges into a mere transaction atmosphere.
The new equation of travel in Southeast Asia
To travel “cheaply” in an ethical and enjoyable way in 2025, the strategy must change. Vietnam offers excellent value for money, but is no longer the cheapest destination without effort.
The choice comes down to an intention: If your goal is to spend as little as possible, head towards the less developed regions of Cambodia or Laos and adopt a strict local lifestyle (slow transportation, street food only). On the other hand, if you seek a better compromise, prioritize Vietnam: by accepting to pay a bit more for a boutique hotel and quality activities, you promote a more sustainable tourism and avoid the crowds of low-cost tours.
Are you ready to pay for an enriching and respectful journey | Ba Be National Park - Mr Linh's AdventuresPaying more to support better
The path to a quality experience is to reject the lowest price. Vietnam must now be seen as the destination offering an exceptional quality-price/quality infrastructure ratio for a reasonable budget, around $50 to $80 per day.
Travelers must understand that saving a few euros often comes at the cost of quality and tranquility. The responsible traveler is one who spends enough and intelligently to ensure their experience without harming their host country.
Is the compromise worth it? Absolutely, as it means trading the illusion of minimal price for the reality of an enriching and respectful journey.