How Vietnamese Consumers Perceive Foreign vs. Local Brands: Insights and Implications

Vietnam’s consumer landscape is undergoing significant transformation, influenced by rapid economic growth, cultural shifts, and evolving consumer preferences. Understanding how Vietnamese consumers perceive foreign versus local brands is crucial for businesses aiming to navigate this dynamic market effectively.

The Allure of Foreign Brands

Foreign brands, especially those from Western countries, have long held a prestigious position in the minds of Vietnamese consumers. Attributes such as perceived quality, innovation, and status contribute to their appeal. A study published in the Journal of Retailing and Consumer Services found that Vietnamese consumers perceive American fashion brands as more attractive, of higher quality, and more prestigious than local fashion brands .​ScienceDirect

This preference is particularly pronounced among younger consumers, who associate foreign brands with modernity and global trends. The desire for uniqueness and differentiation drives this demographic to seek out international products that align with their aspirations .​

The Rise of Local Brands

Despite the strong presence of foreign brands, local Vietnamese brands are gaining traction, fueled by improvements in quality, competitive pricing, and national pride. Government initiatives, such as the “Vietnamese people prioritize using Vietnamese goods” campaign, have bolstered support for domestic products .​VietceteraPMC+1Euromonitor+1

A report by Vietcetera highlights that more than 90% of Vietnamese consumers prioritize local goods when shopping, and 75% would recommend Vietnamese products to family and friends . This shift indicates a growing confidence in homegrown brands and their ability to meet consumer expectations.​VietceteraEuromonitor

Factors Influencing Consumer Perception

Several key factors shape Vietnamese consumers’ perceptions of foreign and local brands:

1. Country-of-Origin Effect

The country-of-origin (COO) significantly impacts consumer evaluations. Products from developed countries are often perceived as higher in quality and more reliable. This perception influences purchasing decisions, with consumers favoring brands from countries with positive images .​osuva.uwasa.fiKantar Worldpanel+1PMC+1

2. Consumer Ethnocentrism

Consumer ethnocentrism refers to the belief that purchasing domestic products is morally appropriate and beneficial for the national economy. In Vietnam, ethnocentric tendencies have been linked to increased support for local brands, especially during times of economic uncertainty .​PMC+1ScienceDirect+1

3. Perceived Quality and Prestige

Perceptions of quality and prestige play a pivotal role in brand preference. Foreign brands often benefit from a “halo effect,” where their international status enhances perceived value. However, as local brands improve in quality and marketing, they are closing the gap in consumer perception .​

Implications for Businesses

Understanding these dynamics offers valuable insights for both foreign and local businesses:

• Foreign Brands: To maintain their appeal, foreign brands should continue to emphasize quality, innovation, and alignment with global trends. Tailoring marketing strategies to resonate with Vietnamese cultural values can further enhance brand acceptance.​

• Local Brands: Investing in product quality, branding, and storytelling that highlights Vietnamese heritage can strengthen consumer connections. Leveraging national pride and demonstrating commitment to community development can also boost brand loyalty.​

Conclusion

Vietnamese consumers exhibit a nuanced perception of foreign and local brands, influenced by factors such as country-of-origin, ethnocentrism, and perceived quality. While foreign brands continue to enjoy prestige, local brands are increasingly capturing consumer interest through improved offerings and cultural resonance. Businesses that understand and adapt to these perceptions are better positioned to succeed in Vietnam’s evolving market.​

References:

1. Pham, H. H., & Richards, B. (2015). The Western brands in the minds of Vietnamese consumers. Journal of Retailing and Consumer Services.​ResearchGate

2. Nguyen, T. B. T., & Huynh, C. M. (2022). Factors of Purchase Intentions toward Foreign Products: Empirical Evidence from Vietnamese Consumers’ Perspective. MPRA Paper.​Munich Personal RePEc Archive

3. Euromonitor International. (2022). Rise of Local Brands in Vietnam.​Euromonitor

4. Vietcetera. (2022). Vietnamese Consumers Increasingly Favor Made-In-Vietnam Goods.​Vietcetera

5. Kantar Worldpanel. (2016). What do today’s Vietnamese consumers think?​Kantar Worldpanel