Has “Share a Coke” campaign succeeded in Vietnam?

VIETNAM – Within 4 weeks since  Coca-Cola has first launched “Share a Coke” campaign in Vietnam; Vietnamese people enjoyed having their names on the packs or bottles of Coca-Cola. A wave of possession personal names on Coca Cola’s products spread all over the country and presented widely on Facebook – the most popular social sites there.

 However, this marketing campaign has been getting opposite opinions from the Vietnamese people. Some of them indicated that Coca-Cola had a creative marketing campaign, which personalized consumers and involved them in its business process as well as inspired them with their tailored products. In addition, some others confirmed that this campaign urged them to purchase Coca-Cola just because of their names put on its products.

“I am excited with the Share a Coke campaign of Coca Cola. I am jubilant to own a Coca Cola can with my name put on. I think Coca-Cola has a very creative idea. I like it,” said Mai, a student of Hanoi University.

“I have never used Coca Cola since I have read many articles explained about the harmful effects of drinking Coca Cola or Pepsi. However, I cannot stop purchasing a can with my name, exiting there,” said Huong, a student of Hanoi Medical University.

However, there are negative feedbacks for this campaign since Coca-Cola has gotten a doubt of evading taxation in Vietnam. Most of the people involved in the interview have said that it has been ashamed for Coca-Cola because of its dodging the taxman since this is a big company. Based on an application allowed creating text on the images of packs and bottles of Coca-Cola, the text with the meaning of asking Coca-Cola to pay tax was created and posted on the fan pages of Coca-Cola. In addition, some people censured Coca Cola’s abuse of individuals to do marketing. They have claimed that it is not fair for them to do marketing for Coca-Cola – a tax dodger.

“How do you think if your name put on the Coca – Cola can be thrown away into the dustbin? I do not want to see that. It is crazy if I help Coca-Cola to do marketing,” said Thanh, an IT staff.

Although there is not official information to confirm whether Coca-Cola has evaded taxable or not, it is still facing public relationship problems in Vietnam. Thus, there are some lessons for foreign companies based on the case of Coca – Cola and the features of Vietnamese culture.

First, Vietnamese people respect feeling due to its cultural features, so once the corporation does the right things such as commitment of social values, law and corporate responsibility, it will get the consumers’ love and empathy. As the result of that fact, the company will succeed.  Moreover, since social sites such as Facebook, LinkedIn, Twitter, and Google Plus are developing in Vietnam, it is easy for customers to share their reviews on products that may impact significantly to the customer’s behaviors. Coca – Cola marketing campaign has settled down dramatically because of rapid shares of customers’ reviews on Facebook.

 Second, it is always important for an international company to localize their marketing campaigns in order to ensure that they are suitable for the local. A thorough understanding about the local culture, as well as the corporate responsibility and commitments, are keys for business success.  “Share a Coke” campaign reaps much success from other countries, but it does not succeed as its expectation in Vietnamese market.

In another hand, it is useful for Coca-Cola to experience the responses of Share a Coke campaign in Vietnam since its problems may become the motivation for its creativity and a good chance for this company to have a better localization plan for the long-term business.   

Posted on The Epoch Times in July 18th, 2014

http://www.theepochtimes.com/n3/blog/has-share-a-coke-campaign-succeeded-in-vietnam/

Top 5 companies operating in finance, insurance and banking in Vietnam

After six years joining in WTO, Vietnamese banking system has achieved positive results in its management, organization, human resource development and services quality. Although commercial banks are facing problems caused by the Global finical crisis; they are spending much attention improving their operations. Reviewing top five commercial banks operating in Vietnam would be helpful for us to understand at a glance this sector.

1. Agribank

Established in 1988, Agribank is well known as the largest commercial bank in Vietnam, according to VNR500. It targets are to serve farmers and agriculture sector in general. Now, it has a total asset of 617.859 Billion VND, chartered capital of 29.605 Billion, total capital of 540.000 Billion VND and total outstanding loans of 480.000 Billion VND. In term of human resource, there are 40.000 employees working for 2300 branches and transaction offices in this bank. Agribank also has business relations with 1043 foreign banks in 92 countries. In additional, it is also the best bank getting and operating international projects, especially projects of World Bank, ADB, AFD and EIB. In the development process, Agribank aims to sustainable development in order to support its clients to prosper. This goal is going to be achieved by comprehensive solutions, including the restructured bank project, which will be reviewed for approval by the Government. 

2. Vietinbank

This bank was opened in the same year of Agribank, after its split out of Vietnam National Bank in 1988. It is the second most gigantic commercial bank in Vietnam with total capital of 503.500 Billion VND.  It is proud of the first commercial bank, which has already established a branch in Europe. It also has business relations with 900 banks and financial institutions in more than 90 countries and regions around the world. In Vietnam, Vietinbank has a large nationwide network with 1 head office, 150 branches and over 1000 transaction offices. Vietinbank is planning to become a well-known finance and banking group in Vietnam and worldwide, as well. In 2013, Vietinbank was at 328 of the top 500 brand names of the banking business, rated by The Banker Magazine. 

3. Vietcombank

Established earlier than Agribank and Vietinbank, Vietcombank was launched in 1963 in order to support international trade. After 50 years working, Vietcombank is the third biggest commercial bank in Vietnam. Its total capital is of  84.600 Billion VND. There are 14000 employees working for over 400 branches and transaction offices in this bank. It also has business relations with 1700 international banks in over 120 countries and regions around the world. With an effort in developing new products and services, combined with a good start for the working plan in the next years, Vietcombank is expected to become the number 1 commercial bank in Vietnam, according to the Governor of State Bank Vietnam, Mr. Nguyen Van Binh.

4.BIDV

Vietinbank was established in 1957 with the name of the bank for development of Vietnam at that time. With more than 50 years working, it is the fourth largest commercial bank with total asset of 484.785 Billion VND. There are 18.546 employees working for 118 branches and 458 transaction office nationwide. Vietinbank aims to become one of the top 20 banks, which provide high quality service, and the most trust services in the South East Asia in 2020.

5.ACB

Established in 1993, ACB is known as the fifth biggest commercial bank in Vietnam. Its total capital is of 176.308 Billion VND in 2012. It has four subsidiaries and 342 branches and transaction offices national wide. At the present, ACB is following two main business strategies such as diversification and expansion. The expansion strategy is represented via system expansion, cooperation promotion and merger and acquisition. The diversification strategy is implemented by creating and developing new subsidiaries in various relevant fields such as stock security, financial activities, loan management, etc.,

These top five commercial banks are contributing significantly to Vietnamese economy in the role of the immediate financial institutions. With the advantages and disadvantages of joining WTO, it is necessary to restructure and reform these banks towards efficiency and effectiveness. 

Do you want to know further about this industry? Get back to us and read the next articles!

Tourism business in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Vietnam has a huge potential for tourism development because of its opulent natural resources, distinctive paddy culture and history values, as well. There are seven important tourism areas with different advantages and core values created by different natural resources and culture in Vietnam. 

First, Midland and mountainous area in the North of Vietnam, which include 14 provinces, is well known for ecotourism and culture - explored tourism products since ethnic minorities with diversified cultures almost live there. In this region's culture, Hung Vuong worship, which is well known with different rituals, has been recognized as the world intangible culture heritage. 

Second, Hong River Delta and the North East coastal region, which comprise of  Ha Noi capital and 10 provinces and cities, is possible in providing Maritime and Marine tourism, culture and history explored tours, urban explored and MICE tourism. With Thang Long Royal Citadel, "Phong Nha - Ke Bang" National park and many intangible culture heritages such as Giong Festival , Lim festival, and so on, this area has the most opulent culture resources in Vietnam. 

Third, The North Central Region, which consists of 6 provinces, can provide ecotourism, culture and history discovered, Maritime and Marine tourism, as well. This area is famous for many historical monuments such as Ho dynasty rampart; Hue Royal ex-capital.   

Fourth, The Coastal of  South Central Region, which includes Da Nang city and 7 provinces, is potential for urban explored tours, MICE, culture and history explored tourism, resorts and islands sightseeing. This region is not famous for excellent tourism attractions, but it is also famous for diversified cultures, including "Chăm - pa" culture. 

Fifth, Tay Nguyen region consists of 5 provinces, where almost ethnic minorities live and create their excellent culture. "Cồng Chiêng" culture is the most well known there and it has been recognized as one of the world culture heritages by UNESCO. This area can provide ecotourism and culture explored tours for visitors. 

Sixth, The South East region includes Ho Chi Minh city and 5 new emerging cities. This region shall succeed with urban explored and MICE tourism, culture and history explored, resorts and islands tours. 

Seventh, Mekong Delta region, which is well known for orchards and waterways culture, can provide ecotourism, culture explored and MICE tourism. This region consists of 13 provinces and is also famous for "Đờn ca tài tử Nam Bộ", one of intangible culture heritages of Vietnam recognized by UNESCO in 2013. 

"Quan Ho singing in Lim festival" 

With seven important areas, which can provide valuable and unique tourism products, Vietnam tourism shall  achieve its development goals if the development strategy in tourism to 2020 is implemented efficient  and effective manners. In additional, according to the decision no 2473/QĐ - TTg announced by Prime Minister, Tourism Development Strategy to 2020, a vision to 2030 encourages international cooperation in tourism in order to foster Vietnamese tourism development in the global market. With the well off natural, cultural resources, tourism business in Vietnam is expected to get profitable values for investors if they provide the competitive products combined with advanced management techniques. What will happen in the future? You will have your owned answers !

"Cồng Chiêng festival"

Effort of Bac Ninh province in getting foreign investment in period of 2013 - 2020, towards 2030

Author: Hoa Nguyen, MBA.,MA.

Bac Ninh province, which is located in the Northern focal economic region, is one of the most successful provinces in getting foreign investment because of its advantages in development and investment environment. Since Bac Ninh was split-ed out of Ha Bac province in 1997, it got positive results in getting foreign investment with 343 projects costing of 4.3 Billion USD in registration. Korea and Japan are the biggest investment countries there. Now, Bac Ninh has 15 industrial zones, 1 information technology zone and 30 industrial groups. Bac Ninh is focusing on getting foreign investment in high technology and environment - oriented industries. In order to support foreign investment towards transparent investment procedures, Bac Ninh People Committee announced the decision No 293/QĐ-UBND, date of 12/8/2013 to approve the project named " Proposal on getting foreign investment in Bac Ninh province, in the period of 2013 - 2020 and a vision to 2030". In this proposal, the achievements and shortages of getting foreign investment in the past 15 years were analyzed in order to propose solutions and orientations for getting foreign investment in the next years.

Investment orientations in Bac Ninh province are provided as following:
 First, Bac Ninh set its priorities for getting investment in Electronic industry, Industrial support and other services, mainly in commerce and tourism, as well as infrastructure.
Second, Bac Ninh encourages partners, who can bring high technology, advanced management methods to support creating edge industries of this province. It also expects to get investment from reputable and strong financial capacity partners.
Third, promotion for social sustains, local incomes increasing as well as another social efficiency is also mentioned in investment orientations of Bac Ninh province.
Fourth, getting foreign investment towards area - oriented is discussed in this proposal. In the north of Duong river area, investment in industries, agriculture and services are encouraged in Yen Phong and Que Vo. The projects on commerce, tourism and urban development shall be focused in Bac Ninh city, Tien Du and Tu Son town. In the South of Duong river area, projects of manufacturing, processing,commerce and services shall be performed in Thuan Thanh while projects of agriculture, commerce, service and infrastructure shall be implemented in Gia Binh and Luong Tai. The most important thing is that Bac Ninh province does not approve projects of manufacturing outside industrial zones.
Bac Ninh province commits to change its mechanism with supportive policies for foreign investment in promoted projects, including:
 - Supports in land clearance
- Supports in training and providing qualified human resources
- Supports in infrastructure building inside and outside projects' fences
- Supports in research and technology transfer as well as creating high technology models.
- Supports in legal procedures
- Open for various investment types such as BOT, BTO, PPP
In the context of international investment growth since Vietnam has become one of the most profitable investment destinations in ASIAN, Bac Ninh's policies shall lead to its success in getting foreign investment. Is it a big question ???? 

M&A in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Since the past five years, evidences have been showing that M&A are vibrant, and they are foreseen to develop in Vietnamese economy in the next years. Main reasons for their future expansion are found out as follows:

First, the Government promotes equitization of State owned companies to reduce the quantity of this sector with targets of 600 companies in 2015 and 300 companies in 2020, according to Vice Prime Minister, Mr. Hoang Trung Hai. Thus, inefficient State owned companies shall be merged or acquired.
Second, in the context of domestic economy's difficulties, Vietnamese Government tends to promote foreign ownership, up to 60 percent, potentially!!!. It is a firm point to foster foreign investment in profitable sectors such as finance and banking, securities, real estate, agriculture, and consumption since Vietnam is known as an attractive destination for foreign investment. Vietnam has high GDP growth rate (more than 5% regularly), skilled labor force at low price, more than 80 million people - market with continuously increased incomes, advantages for investment environment coming from Government policies, including low cost.
Third,  internal restructuring and reform by merging or acquiring with external ones is  a general trend of Vietnamese enterprises in order to increase enterprise's competitive capacity, at the present.
Although, Vietnam is facing to macroeconomic issues and fierce competition from others in the South East Asia, it is still increscent market to invest, according to KPMG report named "M&A in Vietnam, from transaction performer side". In this report, KPMG also indicated that enterprises were valued at a low price but sellers still required the higher price; Asset value was still limited. EBITDA was average at 8X and valuable method was the income coefficient; It regularly took from 6 months to 12 months from the beginning to complete transaction in Vietnam.
In conclusion, because of benefits gaining from M&A and it's necessary for an inefficient company to survive, Vietnamese companies, who shall do the transaction, and foreign investors should provide sufficient information for M&A if a transaction is made towards "win - win" solution. Thus, they can get mutual benefits, which become great basis for the long term cooperation.

MobiFone is being splited out of VNPT to equitize, an opportunity for foreign investors ?

Author: Hoa Nguyen, MBA.,MA.

After the approval of the Prime Minister on the project named ""Restructuring of State Owned Enterprises, focusing on the State Owned Economic Groups in the period of 2011-2015" in the Decision No 929/QĐ-TTg,17/7/2012, the discussion on restructuring Vietnam Post and Telecommunication Group (VNPT),  has raised. A Proposal with detailed options from this Group has been proposed to the Government and has gotten high attention of the whole society because of the important role of this Group in Vietnamese economy.

In the meantime for the final decision on restructuring's options, VNPT got lower gross profit than Viettel's in 2013 with only 9.265 Billion VND, compared with 35.086 Billion VND of Viettel although Viettel accessed this market later than VNPT. The revenue race between VNPT and Viettel is  a fierce day by day.

Recently, it is said that Mobifone, which is contributing of 60 - 70% of VNPT's Gross Profit, is splitting out of VNPT and becoming an independent corporation. Mobifone is being equitized  soon and being expanded its business scale after its equitization, as well.

The decision of splitting Mobifone out of VNPT implies a strong determination of Vietnamese Government in restructuring State Owned Enterprises towards an effective operation and the long term development in the market economy.

Mr. Le Ngoc Minh, Chairman of Mobifone, Deputy General Manager of VNPT, stated that MobineFone would have a great opportunity to develop if it was splited out of VNPT. MobiFone would face no problems in organization, finance and management, as well. Moreover, with more than 6000 Billion VND profit, MobiFone has a large amount of capital depreciation because its divestment is only 1.600 Billion VND. MobiFone shall diversify its business instead of focusing on mobile communication as it has operated.

Is there an increscent chance for foreign investors when MobiFone is equitized since it is one of three famous brand names in Mobile Communication Industry in Vietnam ? You know the answer, as well!!!

Valentine's Day in Vietnam

Author: Hoa Nguyen, MBA.,MA.

Today is a special Valentine's Day with the interesting date of 14.02.2014. Valentine's Day is celebrated in various countries around the world, although this day is not a holiday in most of them. In Vietnam, Valentine's Day is also celebrated and becomes a special occasion for couples to show their love for each other. Chocolates, roses, and greeting cards are traditionally given as gifts, but many other creative gifts are also given to beloved people on this day. However, relationships, which are invaluable as they become a unique feature in Vietnamese culture values, are being promoted in this day. Vietnamese people do not only care about their lovers, but they  also care about their family and friends. Therefore, Valentine's Day may become an important day in Vietnamese culture for people to express their love and respect to all of their loved ones. This mixing of values of Western Culture with Vietnamese Culture may lead to an interesting Valentine's Day in Vietnam.

In term of business, creative services and gifts are attracting Vietnamese consumers. In some online advertisements, we can see some funny services such as "Lover for lease" with diversified packages, even including from A to Z package!!! Looking inside this service, we understand that Vietnamese young people care about their family and friends so they want to have a lover in Valentine's Day to satisfy their relatives. In fact, their family members always ask them whether they have a lover or not  when they are from 18 years old. Promotion for family care in Valentine's Day instead of only couple care in this day may make Vietnamese young people feel free and enjoy their moments with their family rather than finding a phony lover.

Happy Valentine Day :D

E-commerce in Vietnam - a brief view from the case of VinGroup

Author: Hoa Nguyen, MBA.,MA.

Although E commerce is general in development countries, it is still new in Vietnam. In 2010, The Prime Minister announced the Decision No 1073/QÐ-TTg for approval of  E -commerce development overall plan in the period of 2011 to 2015. The main purposes of this plan are to promote E-commerce to become a general trade channel, and go to the advanced level in ASIAN economies. However, the negative effect of the global financial crisis seems to slow down E-commerce steps.

On Feb, 2014, a significant change in VinGroup's Management Board with a new CEO, Mrs. Duong Thi Mai Hoa replaced to Mrs. Le Thi Thu Thuy, has revealed a strong interest of VinGroup in E - Commerce. VinGroup has decided to join in E-commerce business with the establishment of Vin-Ecom. This company aims to create retailing channels for its products and its partners' products, as well.

The action of VinGroup seems to respond timely to the decision of Vice Prime Minister, Mr. Hoang Trung Hai, in asking Minister of Industry and Commerce to review and complete the proposal for building and implementing E-commerce development plan from 2014 to 2020. This proposal shall be approved by the Prime Minister on Feb, 2014.


Advantages of VinGroup, which come from its 1000 Billion VND package for E-commerce, competitive advantages of the pioneer in the aboriginal E-commerce business in Vietnam, and the supportive policies from the Government seem to lead this Group to succeed, do they?

Facebook marketing - an effective marketing campaign for Vietnamese market

Author: Hoa Nguyen, MBA.,MA.

Statistics reveals that about 20 million Vietnamese people are using Facebook with 90% from the range of 14 to 35 years old. Thus, revenues getting from Facebook marketing campaigns of companies here tend to increase dramatically. Since perceiving potential profitable business here, Facebook has been dealing  with local agencies to sign cooperation agreements, and Clever ads company has just become the first Authorized Re seller of Facebook in Vietnam.
The phenomenon of Facebook blooming in Vietnam suggests companies that it shall be smart if they spend their priority in doing Facebook marketing campaign since Twitter and LinkedIn are still not much been interested in Vietnamese people.

In order to implement successfully Facebook marketing campaign, a business does not only need to set up judiciously its market target and to have a perfect implementation plan, but it also need to follow online advertisement rules of Vietnam government. According to Mrs. Le Thi Ha, Division of Legal Affairs, Department of E-Commerce and Information Technology, Ministry of Industry and Commerce, Vietnam, every website, which allows individuals and companies to do business, is determined as E-commercial website, and if it is fit with Article 2, Decree No 52, it is registered to Ministry of Industry and Commerce, Vietnam. In additional, the Circular 12/2013/TT-BCT was announced to guide companies in registration procedures.

In the tactic perspective, Facebook marketing campaign should be outsourced to save resources for business since many talent students are willing to provide their services in managing Facebook sites, which can help them to earn extra money. Students, who are studying business and have a "think out of the box" approach, can bring the excellent Facebook marketing services for the business. Facebook is the best suit for young people, as always. Social media marketing services may arise in this market soon like in others over past years. 

Invest to Vietnam, why not ?

Author: Hoa Nguyen, MBA.,MA.

Known as one of emerging economies in South East Asia, Vietnam is providing many profitable opportunities for foreign investors. Here are main advantages for investment opportunities to Vietnam.

1. Stable political conditions: Since the independent day in 1945, Vietnam has been running only one political system with domination of Vietnam Communist Party. This fact leads to stable political conditions without any political disputes. Vietnam Communist Party is leading the Government in creating the development strategy, policies, especially promotional policies for economy development. The "green light" for foreign investment is also turned on by specific policies and rules from the Government.

2. Huge market with more than 80 million people, who are finding high quality of products and services due to the lack of food safety and terrible existing products imported from unsafe sources.

3. Vietnamese economy is recovering from the global financial crisis by positive supports from the Government. In 2013, GDP growth rate has been estimated at 5,4%. GDP growth rate is also estimated at 5,8% in 2014 and 6% in 2015.

4. Profitable rate of this economy is higher than development economies because of the development rules, determined by the role of technology and economic scale. Foreign exchange rate forecasts to be stable in the next years.

Nhon Trach Industrial Zone - Vung Tau - Vietnam

5. Young Vietnamese people love "new trends" in consumption and lifestyles, which come from foreign economies. And the case of McDonald's Vietnam is a strong evidence for the mentioned trend. People were excited to wait for enjoying its products in the first launched day of this brand in Ho Chi Minh city.

6. Vietnamese incomes are increasing significantly. At the present, Vietnamese GDP per ca-pita is at nearly $2000/year, reported by IMF in 2012.