Vietnamese Brands “Stuck in the Middle”: A Major Challenge in the E-commerce Arena
With a retail market valued at $180 billion and an e-commerce market projected to reach $63 billion by 2030, Vietnam is becoming a “golden land” in Southeast Asia. However, despite this immense potential, experts warn that Vietnamese brands are “stuck in the middle” on e-commerce platforms, lacking the competitiveness to stand against international rivals.
The event of Ho Chi Minh City merging to become an international mega-city is creating strong momentum: the number of businesses will rapidly increase, forcing brands to adopt strategies for sustainable identity and development. The current situation, however, is not very optimistic.
Expert Analysis: Why Are Vietnamese Brands “Underpowered”?
Vietnamese experts all point to core weaknesses: a lack of strong brands in the mid-to-high-end segments, weak international marketing strategies, and fragmented production.
- Lack of Clear Positioning: Dr. Dinh The Hien notes that Vietnamese brands have not yet created a clear gap from cheap Chinese goods and have not reached the high-end level of countries like Thailand or South Korea. This is a fatal weakness as consumers increasingly demand high-quality products and rich shopping experiences.
- Unsustainable Strategies: According to Mr. Nguyen Minh Duc, Deputy Secretary-General of the Vietnam E-commerce Association, “The biggest weakness is the lack of a long-term strategy.” Many businesses participate in e-commerce in a “piecemeal” fashion, without proper investment, leading to their inability to build strong brands.
International Experts’ Viewpoint: “Vietnam Needs to Break from Old Habits”
According to digital market analyst James Taylor from the Boston Consulting Group (BCG), Vietnam’s situation is not unique, but it is alarming. “Vietnam is at a crossroads. On one hand, they have a young, tech-savvy population and a market full of desire. On the other hand, their brands are stuck in an old manufacturing mindset, focusing more on cost than on brand value.”
Mr. Taylor emphasizes that Vietnamese brands need to learn from the models of South Korea and Thailand:
- Focus on Brand Storytelling: Build a powerful, unique story around the product to create an emotional connection with consumers. “A good product is just a necessary condition; a strong brand is the sufficient condition to win over consumers in the digital space,” Taylor analyzed.
- Invest in Customer Experience: In a competitive environment, fast delivery, flexible return policies, and excellent after-sales service are decisive factors.
Mr. Mark Williams, a global supply chain expert from McKinsey & Company, also offers advice for Vietnam’s agricultural sector: “Fragmented production is the biggest barrier. To penetrate demanding markets like the U.S. or Europe, products need clear identification, traceability, and adherence to international standards.” He stresses that building an agricultural brand is not just about slapping on a label; it’s a process of professionalizing the entire supply chain, from the farm to the consumer.
Simultaneous Challenges and Opportunities
E-commerce is bringing a “big wave” to Vietnamese businesses. However, as experts warn, without thorough preparation in strategy, finance, and mindset, this “wave” could sweep away weak brands instead of carrying Vietnamese goods out to the wider sea.
To turn this opportunity into an advantage, there needs to be close cooperation among the state, associations, and businesses to build a transparent legal framework and consistent standards, helping Vietnamese brands compete confidently in the digital space.
