PurposeThis paper presents the impact of the COVID-19 pandemic on Vietnam's tourism industry to propose appropriate recovery strategies in the future.Design/methodology/approachThis study uses a combination of research methods. Data were collected from the Ministry of Culture, Sports and Tourism, General Statistics Office, Vietnam National Administration of Tourism and Ministry of Health. Non-parametric statistical methods were applied to analyze the differences between epidemic and non-epidemic periods and find correlations between the number of infections and data related to the performance of the tourism industry. In-depth interviews with 20 people linked to tourism activities were conducted to analyze the impacts and propose strategies for future recovery.FindingsThe results demonstrate the severe impact of the pandemic on Vietnam's tourism industry based on a decrease in the number of visitors, business activities, revenue and employment rate. Therefore, to recover tourism – Vietnam's key economic sector in the future – developing reasonable strategies to build a safe tourism environment, building a sustainable tourist market, diversifying and improving tourism high-quality tourism products, marketing, human resources, digital transformation and sustainable tourism are necessary, along with the development trend of the industry after COVID-19.Originality/valueThis paper synchronously and systematically presents the effects of COVID-19 on Vietnam's tourism industry based on official data. Strategies are proposed to handle these effects on a reliable scientific basis. This study can be considered a valuable reference for researchers and managers of tourism in developing countries, such as Vietnam.