This paper combines the film model with Nusselt's condensation theory to analyze the effects of water vapor condensation on the heat transfer performance of flue gas flowing through a vertical tube. The analysis compares the condensation and convective heat transfer rates. For the concentration range investigated, the water vapor condensation transfers more energy than the flue gas convection, but the convective heat transfer can not be neglected. The heat transfer intensification due to the condensation increased as the water vapor fraction increased. The theoretical results compared well with experimental data.