Regardless of their size, many global brands have built long-standing reputations by developing and refining their unique resources – from local materials and traditional techniques to entrepreneurial know-how.

For example, Uruguay’s Black River Caviar and the UK’s Hawkshead Relish have elevated their brands globally despite being small-sized family businesses, through creativity, innovation, and smart use of natural resources and knowledge-based or entrepreneurial skills.

Vietnam, where small and medium-sized enterprises account for over 95 per cent of all businesses, holds similar potential, said RMIT Associate Professor of International Business Abel D. Alonso.

“Vietnam possesses unique traits that could spearhead international success in the coming decades without heavily relying on cost advantage strategies,” he said.

But how can businesses unlock those unique traits?

Speaking at the 2025 Vietnam National Branding Forum in Hanoi, Associate Professor Alonso highlighted a useful framework—the VRIN model. Developed by American professor Jay Barney in 1991, this model helps businesses understand their competitiveness through the notions of valuable, rare, imperfectly imitable, and non-substitutable resources.

According to Barney, when firms implement strategies that create value and are not applied by competitors, they can achieve a competitive advantage. These strategies may draw on the firm’s assets, attributes, knowledge, information, capabilities, and processes – resources that can be powerful levers if aligned with VRIN.

“This means firms have ‘many cards up their sleeves’ to stand out and excel, even in the face of competition,” Associate Professor Alonso said.

Applying the VRIN model in the Vietnamese context

For years, industry and government advocates have called for Vietnamese companies to embrace sustainable and forward-thinking strategies, business models, and philosophies. By now, many local companies have a partial or complete alignment with VRIN principles.

One example is DACE - a local spice producer that is currently exporting its organic products worldwide after obtaining different international certifications such as USDA Organic, JAS, Naturland, and BioSuisse. By enhancing its VRIN alignment, including the certifications and producing sought-after products, the company has established its competitiveness in various lucrative markets.

Some players in Vietnam’s fashion industry have also demonstrated VRIN characteristics. For example, Viet Tien has experimented with lotus and eucalyptus fibres, integrating cultural and sustainable elements that help distinguish their products.

According to Associate Professor Alonso, Vietnam boasts a wide range of VRIN resources that are embedded in industries, from chocolate to coffee and fashion. Simultaneously, creativity, innovation, adaptability, and entrepreneurial flair are core to the country’s values.

“Successful companies that consciously or unconsciously align with VRIN principles can enhance their competitiveness and achieve sustainable competitive advantage,” he said.

At the same time, consumer demand is shifting in Vietnam’s key export markets. High-quality, traceable, and eco-conscious products are in demand – presenting new opportunities for Vietnamese brands.

To capitalise on these trends, Associate Professor Alonso suggested several strategies: First, companies must communicate their value through realistic, relatable narratives and business approaches. Second, successful small businesses should be showcased as trailblazers of Vietnam’s evolving national competitiveness. Third, firms need to activate their resource potential in ways that align with VRIN.

“A balancing act must be considered, where the production of unique and VRIN-aligned products possesses a global appeal, has a constant supply and demand, and is complemented by personalized service,” Associate Professor Alonso noted.

Associate Professor Abel D. Alonso spoke at the 2025 National Branding Forum on 16 April in Hanoi. (Photo: RMIT)

Beyond resources: Support for innovation is needed

“Breakthrough from Innovation and Creativity” was the theme of this year’s National Branding Forum hosted by the Vietnam Trade Promotion Agency, with RMIT University Vietnam as the knowledge partner.

Innovation, in fact, has strong connections with VRIN and companies’ strategies that go beyond simple cost advantage notions.

“Innovative approaches ultimately help firms gain global recognition,” said RMIT Senior Lecturer of International Business Dr Oanh Vu. “Technology plays a decisive role in transforming VRIN resources into competitive products and services. However, our research shows that Vietnamese companies still face multiple challenges in adopting the necessary technologies for innovation.”

Research conducted by Associate Professor Abel D. Alonso, Dr Oanh Vu, and colleagues with 112 local business leaders revealed that apart from companies’ available competencies and required resources, external support is strongly needed.

At the industry level, support can come in the form of stronger business networks to foster unity in the business community. At the government level, technological sponsorship, legal framework guides, and the development of future digital workforce are the key expected factors to help local companies sustain competitiveness.

“As global competition intensifies and protectionism rises, Vietnamese businesses have a chance to define their edge through innovation. With the right support and strategic mindset, the Vietnamese business community has the potential to stand out for what makes it different, not just what makes it affordable,” Dr Oanh emphasised.