FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

---------***--------

MID-COURSE INTERNSHIP REPORT

Major: International Business Economics

ANALYSIS OF BRANDING STRATEGY AT

AIRPORTS CORPORATION OF VIETNAM

Student: Trần Thùy Linh

Student ID: 1911115246
Class: K58CLC3
Intake: 58
Supervisor: Nguyễn Quỳnh Hương
Professional consultant: Nguyễn Quỳnh
Hương

Ho Chi Minh City, tháng 8 năm 2022

 FOREIGN TRADE UNIVERSITY
HO CHI MINH CITY CAMPUS

---------***--------

MID-COURSE INTERNSHIP REPORT

Major: International Business Economics

ANALYSIS OF BRANDING STRATEGY AT

AIRPORTS CORPORATION OF VIETNAM

Student: Trần Thùy Linh

Student ID: 1911115246
Class: K58CLC3
Intake: 58
Supervisor: Nguyễn Quỳnh Hương
Professional consultant: Nguyễn Quỳnh
Hương

Ho Chi Minh City, tháng 8 năm 2022

FOREIGN TRADE UNIVERSITY SOCIALIST REPUBLIC OF VIETNAM

HO CHI MINH CITY CAMPUS Independence - Freedom - Happiness

MIDTERM PROFESSIONAL REPORT REMARKS

Student’s full name: Trần Thùy Linh Student code: 1911115246

Name of the report: Analysis of Branding strategy at Airports Corporation of Vietnam

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Ho Chi Minh City, ….../….../...............

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(Signature with full name)
 STATEMENT OF AUTHORSHIP

Except where the reference is made in the report, this thesis contains no material
published elsewhere or extracted in whole or in part by which I have qualified for or
been awarded another degree or diploma.

No other person’s work has been used without due acknowledgement in the thesis.

This thesis has not been submitted for the award of any degree or diploma in any
other tertiary institution.

Ho Chi Minh City, August 2022

Trần Thùy Linh

ACKNOWLEDGEMENT

This report would have not been completed without the support of individuals and
departments. First and foremost, the author wants to express her greatest gratitude
and biggest thanks to Mrs. Nguyen Quynh Huong, her supervisor, for helping and
instructing her as well as sharing detailed comments to enhance her report.
Furthermore, the author would like to thank the staff of Airports Corporation of
Vietnam for providing the necessary data and documents for the business analysis.

Due to the limited time and insufficient knowledge, this report cannot fully satisfy
all the expected requirements, and shortcomings are unavoidable. Hence, the author
is looking contributive feedback from the Supervisor for better performance.

Ho Chi Minh City, Aug 15th, 2021

Trần Thùy Linh

 TABLE OF CONTENT

LIST OF ABBREVIATIONS

LIST OF TABLES AND FIGURES

PREFACE ..................................................................................................................1

CHAPTER ONE: INTRODUCTION OF AIRPORTS CORPORATION OF

VIETNAM .................................................................................................................2

1.1. Brief history ......................................................................................................2

1.1.1. Formation ...................................................................................................2

1.1.2. Business activities ......................................................................................2

1.2. General information ..........................................................................................3

1.3. Organizational structure....................................................................................3

1.3.1. Organizational structure .............................................................................4

1.3.2. Intern department – Business and Market Development ...........................5

1.4. Business outcomes in 2021 ...............................................................................5

1.5. Summary of the internship................................................................................7

CHAPTER TWO: BRANDING STRATEGY OF AIRPORTS

CORPORATION OF VIETNAM ...........................................................................8

2.1. Theoretical basis of branding strategy ..............................................................8

2.1.1. Theoretical definition .................................................................................8

2.1.2. The importance of branding strategy .........................................................9

2.1.3. Key components of branding strategy ........................................................9

2.1.4. Branding strategy of a state-owned company ..........................................10

2.2. Descriptions of branding strategy at ACV .....................................................10

2.2.1. Overview ..................................................................................................10

2.2.2. Branding strategy of ACV ........................................................................12

2.2.3. Requirements for forming a branding strategy for ACV .........................14

 2.3. Similarities and differences between theory and practice in branding strategy.
.....................................................................................................................15

2.3.1. Similarities ................................................................................................15

2.3.2. Differences ...............................................................................................16

CHAPTER THREE: COMMENTARY ON THE INTERNSHIP PERIOD AT

AIRPORTS CORPORATION OF VIETNAM ....................................................16

3.1. General evaluations of branding strategy at Airports Corporation of Vietnam .

.....................................................................................................................16

3.2. Recommendation about branding strategy for Airports Corporation of Vietnam

.....................................................................................................................17

3.3. Opportunities for the brand in the future ........................................................17

CONCLUSION ........................................................................................................19

REFERENCE ..........................................................................................................20
LIST OF ABBREVIATIONS

No. Abbreviations Full in English

1 ACV Airports Corporations Of Vietnam
2 FDI Foreign Direct Investment
3 SME Small and Medium Enterprise
4 SOE State-owned Enterprise
LIST OF TABLES AND FIGURES

List of tables

No. Name of table Page

1 Transportation Output in 2021 6

List of figures

No. Name of figure Page

1 Airports Corporation of Vietnam 3
2 ACV’s Organizational Structure 4
3 ACV’s Branding Strategy Roadmap 15
 1

PREFACE

Aviation is a mode of transportation that applies modern techniques to international

operations and operates synchronously in a tight process. Currently, shipping by air
is the most popular mode of transportation in the world, famous for its safety and
speed, providing outstanding customer experiences. In recent years, Vietnam has
made the right decisions when investing resources to develop state-owned airline
companies vigorously. Specifically, in the past 10 years, Vietnam has made
remarkable steps. International organizations also rate Vietnam's aviation industry as
one of the fastest expansions in the world, with the growth rate always reaching
double digits. Recently, Vietnam's aviation industry welcomed the opening of Long
Thanh International Airport, one of the ports considered to have significant influence
and is one of the critical airports in Vietnam. All achievements and great strides of
Vietnam's aviation industry are thanks to the direction and creative development plan
of Airports Corporation of Vietnam (ACV). ACV has shown investors and potential
customers that they are worthy of trust with a promising future. The reason is the
company's leaders' large-scale strategic branding strategy.
This report discusses matters revolving around the enterprise mentioned earlier,
particularly "The analysis of branding strategy at Airports Corporation of
Vietnam", which is a new topic in many State-owned enterprises. Next, the author
compares the theory and practice of brand strategies with evidence and knowledge
gained from the internship at ACV and Foreign Trade University.
In addition to acknowledgements, table of contents, lists of diagrams, preface and
references, the report is divided into three chapters:
Chapter 1: Introduction of Airports Corporation of Vietnam
Chapter 2: Branding strategy of Airports Corporation of Vietnam
Chapter 3: Commentary on the internship period at Airports Corporation of Vietnam
 2

CHAPTER ONE: INTRODUCTION OF AIRPORTS CORPORATION OF

VIETNAM

1.1. Brief history

1.1.1. Formation
Airports Corporation of Vietnam is a company operating under the mode of Parent
Company, converted from a State-owned One Member Limited Company with 100%
charter capital into a joint stock company according to Decision No. 1710/QD-TTg
dated October 6, 2015. ACV was established on 08/02/2012 under Decision no
23008/QĐ-BGTVT by the Minister of Transport to merge three airport companies
based on regions North, South, and West. It is now a joint stock company and the
Minister of Transport is the capital owner of ACV, holding 95,40% total shares of
the corporation.

1.1.2. Business activities

ACV is the administrative centre and the flight operations coordinator; It invests and
employs all 22 systems of both domestic and international airports throughout
Vietnam. It can be divided into three main business areas: Aviation, non-aviation
services, and sales. Because it is under the control of the state, ACV is the heart of
providing countless support services for all air transportation throughout Vietnam
including investing, directly manufacturing air devices, building airports, providing
services such as aircraft maintenance, fixing technical problems, selling fuel,
lubricant and specialized liquid.

Among many goods and services ACV is responsible for, the corporation’s focus is
on Aviation services:

• Landing and take-off service: ACV supplies facilities such as runways,

taxiways, lighting systems, and meteorologists to ensure safe landings and
take-offs for airlines.
• Ground handling: ACV arranges aircraft parking techniques, loading and
unloading, transporting luggage and goods from the aircraft to the airport
and vice versa and passenger transportation services.
 3

• Security screening service: ACV provides baggage and cargo screening

services with specialized gadgets

1.2. General information

Trading name in Vietnamese: Tổng công ty Cảng hàng không Việt Nam

Trading name in English: Airports Corporation Of Vietnam

Abbreviated name: ACV

Logo:

Headquarter address: 58 Trường Sơn, Ward 2, Tan Binh District, Ho Chi Minh
City

Enterprise identification number: 0311638525

Charter capital: 21.771.732.360.000 vnd

Legal representative: Mr. Vu The Phiet – Director

Phone number: (84.28) 3848 5383 - Fax: (84.28) 3844 5127

Website: https://www.vietnamairport.vn/

1.3. Organizational structure

Because ACV is a state-owned company, its organizational structure operates on a

large scale with several departments and parties. Not only that, Airports Corporations
Of Vietnam is responsible for 22 airports all over Vietnam, two subsidiaries, and 10
joint venters. Altogether, ACV is observed to be an vital conglomerate in Vietnam’s
industry.
 4

1.3.1. Organizational structure

Figure 1.1: ACV’s Organizational Structure

(Source: ACV’s Annual Report 2021)

ACV’s organizational structure comprises three main parties taking control of

different subject matters in the company: Shareholders, Board of Directors,
Supervisors, and Managing directors. 13 units operate under the Managing Director
at ACV: the head office, union, Finance and Accounting department, Organizing and
Personnel department, Port Operation department, Security, Safety and Quality
Control department, Business and Market Development department, Strategy
department, Construction department, Environmental Engineering and Technology
department, Long Thanh International Airport Project Management department.
Besides supervising 13 departments, the Managing Director directly manages 22
airports overall.
 5

1.3.2. Intern department – Business and Market Development

The Business and Market Development department’s main tasks are research and
development of the aviation market, especially the establishment of new plans to
renovate airports; The department discovers potential lands for investment, conducts
branding strategy to open markets outside Vietnam. Moreover, this department is
crucial for ACV's business activities because it primarily influences the company's
strategic plan and shapes the future path. This is also the core team of ACV’s vision
about the market, customer behaviors and partners.

1.4. Business outcomes in 2021

Problems: In 2021, Covid-19 was the cause of severe profit loss and damage to
Vietnam’s aviation industry in general and airports in specific. It suffered the most
from the pandemic when the transportation output continuously dropped, the number
of international customers decreased to 93% along with 49% of national customers,
business activities of ACV also experienced a negative impact. There were periods
when airports had to shut down in the long term while the fixed costs and variable
costs of functioning all the infrastructures and resources had to be maintained
alongside conducting all the measures to prevent the epidemic.

Losses: Business partners of ACV are not excluded from the chain of destruction by
Covid-19 when certain companies can not fully recover after the catastrophe, leading
to the risks of bad debts, long-term debt, imbursed investments, affecting the flow of
money and financial situation of ACV.
 6

Figure 1.2: Transportation Output in 2021

% TH 2021 compared
KH 2021 TH 2021 with
KH 2021 TH 2020
1 Total passengers
81 30 37% 46%
(millions)
- International 7,7 0,5 7% 7%
- National 73,3 29,5 40% 51%
2 Total goods, parcels (tons)
1.538 1.473 96% 113%

- International 1.062 1.159 109% 126%

- National 476 314 66% 82%
3 Total landings and
569 291 51% 62%
takeoffs (1.000 turns)

(Source: ACV’s Annual Report 2021)

The total number of commercial flights in 2021 has reached 292 thousand and
decreased significantly by 38% compared to 2020; Passenger volume reached 30
million and decreased by 54% compared to 2020. In particular, international arrivals
achieved only 0.5 million passengers, shockingly down to 93% compared to the
previous year; Parcel cargo volume had 1473 thousand tons and increased remarkably
by 13% over the last period.

Revenue: Total revenue in 2021 was observed to decrease significantly by 67,19%

compared to that matter in 2020 owing to the effects of Covid-19 that weakened the
transport quantity via airports, declined to 99% substantially.

Profits: Most of the corporation's revenue comes from providing aviation services,
accounting for more than 80% of the corporation's revenue. Among the negative
 7

consequences of the pandemic to the industry and the effort to cut down expenses,
minimize the costs, ACV estimated profit was evaluated to be 738 billion vnđ, which
surpassed 31,3% of the original plan agreed on the first place by the chairman.

Costs: Since the breakouts, ACV has been taking measures to save resources, strictly
manage the operational costs and variable costs, conserve the infrastructures and
adjust the salary rates between 15% to 45%. The result was optimistic when the board
successfully managed the outlay and decreased it to 22,5% compared to the past few
years.

Achievements: Even though 2021 was a year full of changes and hardships for the
aviation industry, this is the fourth year ACV won the Asia Pacific Entrepreneurship
Awards – APEA and was recognized in the Top 10 Most Famous Vietnamese brands.
Specifically, Tan Son Nhat international airport was among the Top 10 best airports
in the world, serving over 25 million passengers a year. Not only that, ACV
conducted the Signing Service Level Agreement (SLA) with many airlines to ensure
ground service quality at the ports.

1.5. Summary of the internship.

The internship lasted five months, including various activities and opportunities to
experience working with professionals. This helped the author apply learned lessons
into practice, tasks requiring soft skills and experience. Not only that, the author can
use public speaking skills, critical thinking skills for presentations and group
discussions at the department with help and careful comments from the department
managers and co-workers, precisely:

• Period I: from 10th June to 15th July 2022, the author got to know all the
active departments in the head office including the Business and Market
development department, strictly complied with the working styles as
announced by the company, received training on the usage of company's
website, Microsoft Office and exploited the corporation's resources, data.
• Period II: from 15th July to 1st August 2022, the student is oriented on the
chosen topic, managed by the intern department…, gained more in-depth
 8

guidance on the duties and professional work of the sales and market
development department, researched deeply about airports where ACV
can invest in
• Period III: from 1st August to 20th August 2022, students had a chance to
go on a field trip tp Tan Son Nhat International Airport and understand the
distinguished jobs, duties and business methods of a large airport owned
by ACV. In addition, students also have the opportunity to learn about
documents related to the field of logistics.

CHAPTER TWO: BRANDING STRATEGY OF AIRPORTS

CORPORATION OF VIETNAM

2.1. Theoretical basis of branding strategy

2.1.1. Theoretical definition

A branding strategy is a part of a business plan that is often executed in long term to
achieve results based on company strategy that leads to awareness and
distinguishment of the brand to the customer. A well-defined branding strategy helps
the customers to catch the core value, mission, promise of the company, benefits the
business by helping the board to understand customer insight and the competitive
environment, forming a master strategic plan for all the company's business activities.
According to several research, there are seven common branding strategies: Personal
branding for individuals; Product branding makes a particular goods or services stand
out and recognizable; Corporate branding is a concept that one company exhibits its
self-image to the public to convey a message to the customers and investors; Business
employing service branding aims to offer their clients the best service, using excellent
customer experience to show core value; Co-branding is a way that different firms
co-operate to make brands influence each other positively; Online branding helps
companies to establish their presence in the marketplace; Minimalist branding is a
strategy for a generic brand hoping their products is the message itself.

The typical brand strategy process comprises three stages:

 9

• Plan: Before starting brand-building strategies, leaders research to ensure the

plan operates well in the market, including specific niches, competitors, and
the roots of marketing strategy.
• Build: Start building means to create the company identity for both internal
and external factors, form website, social channels, and other media through
which will be executed in the strategic plan.
• Execute: Finalize all the preparation, launch the brand and fully utilize all the
messaging strategies.

2.1.2. The importance of branding strategy

According to Interbrand and JP Morgan, brand accounts for one-third of shareholder
value and is one of the most valuable intangible assets. It is safe to say that businesses
can expand in a variety of direct and indirect ways with the help of brand strategy
because it is a component that makes branding and marketing clearer and more
consistent. Branding strategies are significant because they can affect the entire series
of the master business plan of a company, helping the investors foresee the
opportunity in the business. Moreover, it maximizes the investment return if the
strategy meets all the requirements and expectations from the investors, gaining trust
and money flow for renovations. Furthermore, an effective strategy leads to excellent
outcomes: enhanced market share, customer loyalty, acquisition costs, and company
preferences. By concentrating on and defining the scope of marketing initiatives, the
board may spot flaws, establish accountability, and possibly assure the more
accessible and more successful execution of marketing campaign.

2.1.3. Key components of branding strategy

There are many elements contributing to a successful branding strategy. In particular,
the leaders have to answer important questions about their brand: The existence and
identity of the brand; the Stories the company wants to tell; At what radiation level
does the firm hope to influence the public and the investors; To which buyer personas
the brand focusing on; The issues and drawbacks the brand is facing, what are the
solutions and tactics to improvise. In other words, brand strategy requires determining
progress. By many professionals and large corporations, it needs a Brand Strategy
 10

Roadmap suggested by Graham Robertson. The Roadmap uses the concept of the
brand idea to provide an impression across the five consumer touchpoints mentioned
above: the promise, story, innovation, purchasing period, and consumer experience
are some of the connections interacting with targeted buyers and potential investors.
ACV’s Brand Strategy Roadmap is going to be illustrated in next section for further
understanding.

2.1.4. Branding strategy of a state-owned company

A state-owned enterprise like ACV found an enormous advantage in monopolizing a
product in a host country. Therefore, these companies tend to reach out internationally
on short notice, building a brand strategy to attract overseas customers and foreign
investors. As a result, the branding strategies of SOEs are distinguishable from other
corporate models. Based on the information above, the research often launches on a
larger scale, including research and surveys of potential continents and countries. It
is much more about politics, religions, genders, population. Not only that, but the
branding strategies of SOEs are also highly fixed and strictly followed, making them
difficult to change. Findings by Leijerholt, Chapleo, and O'Sullivan in 2019
suggested that SOE's brand may serve less as a tool to establish distinctiveness or
differentiation and more as a way to enhance an overall bright view of the company.

Besides the absolute advantages for SOEs in terms of monopolizing a sector in their
state, these companies also face difficulties implementing their branding strategy
abroad. The lack of studies and theoretical framework is one of the most specific
disadvantages companies have to initiate, which can be unfavorable for the
government. Secondly, when the management realizes that their plan needs an
adjustment in the strategic plan, a poor implementation may negatively affect the
industry and the entities.

2.2. Descriptions of branding strategy at ACV

2.2.1. Overview
As stated before, ACV is currently managing, investing, and operating 22 airports
across Vietnam, including nine international ports and 13 domestic airports. In
Vietnam aviation, ACV always strives to build and create values. Specifically, ACV
 11

has been nominated for three consecutive years in the list of top 15 brand names with
the best business performance in the program "Vietnam Best Corporation",
continuing to affirm its prestige, brand position, and development of sustainability of
ACV. For the brand to reap great success as it is today, it is due to effective strategy
and investment management, which helps Vietnam's major airports and ports be
influential and resonate worldwide. Up to now, ACV has three potential and largest
airports in Vietnam: Tan Son Nhat International Airport, Noi Bai International
Airport, and Da Nang International Airport.

Tan Son Nhat International Airport: Vietnam's aviation industry has made
enormous adjustments and created dynamic steps in international economic
integration and the continents. Catch up with the trend, Tan Son Nhat International
Airport constantly invests in modern equipment, upgrading infrastructure,
contributing to the company's management and operation becoming more
modernized. As a result, landing products and freight have continuously increased
rapidly over the years, making Tan Son Nhat International Airport the largest airline
in the country. Proper branding strategies also help investment, tourism, and
commercial and cultural activities between Vietnam and Ho Chi Minh City,
particularly with the world. According to the adjusted plan, Tan Son Nhat
International Airport is an airport of level 4E according to the standard code of the
International Civil Aviation Organization (ICAO) and grade I military airport.
Noi Bai International Airport: The airport is Vietnam’s second largest international
airport. Every year, the airport serves tens of millions of arrivals and departures. Noi
Bai Airport plays a crucial role in the economic, tourism, and cultural development
of Hanoi city and the northern provinces. In the future, Noi Bai International Airport
will expand, build new terminals, and add take-off and landing runways. The goal of
ACV is to turn Noi Bai airport into one of the major airports in Southeast Asia.
Da Nang International Airport: Da Nang International Airport is one of Vietnam's
three busiest international airports. As the primary airport serving the needs of
international and domestic air traffic for Da Nang city and the Central Highlands
region. This is the departure, the arrival point of more than 260 domestic and
international flights with more than 40,000 passengers embarking each day. For many
 12

years, Danang Airport has continued to lead in service quality and customer
satisfaction at home and abroad.
2.2.2. Branding strategy of ACV
As known before, a brand strategy describes how the organization will establish
rapport and favourability with the market. Customers choose one company over the
competition because the brand name and message are distinctive in their eyes. Reality
shows that the theoretical part only indicates how the branding strategy works for
small and medium-sized companies, and state-owned companies like ACV have a
completely different approach.
Vision and Purpose: Specifically, when looking at fiction and purpose, we can
confirm that ACV's idea is to reach international levels and increase popularity and
brand recognition in many regions by using available advantages to develop
Vietnam's aviation industry further. Statistically, 2,000 billion dongs will invest in
expanding the airport and international passenger terminal at Tan Son Nhat,
mobilizing $2.6 billion to build Long Thanh international airport. It is peculiar for
AVC's desire to upgrade Vietnam's essential ports and significant resources to build
an influential airport and act as Vietnam's representative in the future, which is Long
Thanh international airport.
 In short, the vision and purpose of ACV are not only for a brand but also for
Vietnam in general. Becoming the only Vietnamese international airport
company with solid resilience, abundant capital, and willingness to support
from the government, making Vietnam a potential country for developing the
aviation industry worldwide
Values: To get the actual value that ACV wants to bring to investors and customers,
it is necessary to objectively look at the nature of a company with more than 95%
equity in the state; comparative advantages making the company stand out in the eyes
of investors and customers over competitors: ACV is the largest airport operator in
Vietnam both before and after the COVID-19 pandemic. ACV's monopoly position
will maintain in the next 2-3 years before the appearance of other units of retail
mining. ACV is superior in passenger and flight operations compared to other airport
 13

operators. Abundant financial resources and short-term investments account for 57%
of total assets.
 In summary, the values ACV brings are many regarding the company's
position in Vietnam. This corporation needs to pay attention to its future goals
and improvisation plans with changing trends to make the brand sustainable
over time.
Goals: Vietnam's air transport market is slowing down, especially in the international
market segment, which will affect the implementation of the annual plan. Therefore,
ACV will actively implement solutions to increase business efficiency in the
following years, especially in non-aviation services. At the same time, this year, ACV
plans to conduct a strategy to increase charter capital from equity to supplement
money for investment and development of port infrastructure. Moreover, the
corporation will focus on completing crucial tasks such as strengthening discipline,
the system serving the air transport chain, ensuring aviation safety and security, and
step-by-step modernizing and improving the service quality. The appearance of Long
Thanh International Airport is one of the critical national projects planned to reach
level 4F according to the decentralization of the International Civil Aviation
Organization (ICAO). It is a leading international airport in the country, aiming to
become one of the important air transhipment hubs of the region.
Issues: Every business, big or small, will encounter problems in its strategy. ACV is
no exception when the issues facing the company are macro problems. As an
enterprise under state control, the pressure of cash flow and investment capital to
build infrastructure, renew facilities, and flight routes are always one of the
corporation's difficulties. It is alarming that many take-offs, landings, and taxiways
at the airport have exceeded the operating frequency compared to the original design.
Many airports have significant damage, pose a threat to flight safety, and have
dangerous consequences that may result in the closure of the runway at any time. In
addition, up to this point, ACV's business results have not developed equally with the
size of passengers. Statistics show that ACV's profits are only 40% of that of an
airport management unit in Thailand and only 60% of that of a Malaysian business
unit. One reason ACV's business results were not as expected is the limited
 14

development of accompanying services for passengers at airport terminals.

According to calculations, the revenue of airfare per passenger through the ACV
system is only 1 USD compared to the average in Asia.
Tactics: When looking at the outstanding issues, ACV needs creative direction from
the leadership to develop specific strategies. With the problem of capital, the
company should continue the projects quickly and avoid stalling while it is still
possible to implement. Regarding infrastructure degradation, estimating the damage
quickly and planning to repair and renovate are compulsory. The company needs to
avoid continuing damage affecting its reputation. When looking at the operation of
management units in the region, to increase business results, the company must invest
in integrated airport terminal projects, including a wide range of services: shopping
malls, accommodations, and dining services. For example, at Tan Son Nhat
International Airport, a place called SASCO Sleeping Zone provides customers with
a resting room to pass the time while waiting for the flight. With fixed costs
accounting for over 80% of the cost structure of production and business, well-
developed value-added services such as advertising, space leasing, and food service
can significantly impact ACV's future profitability.
2.2.3. Requirements for forming a branding strategy for ACV
As analysed in detail, the branding strategies of SOEs like ACV have entirely
different directions than any other companies. The issues that ACV cares about are
often of a large scale, impacting the economy of a country or region. Strategies,
including branding, are often calculated, and implemented over a long period and are
often fixed and difficult to change. In addition, once the manager makes decisions, a
small change can affect the entire plan as estimated, as COVID-19 for ACV is an
event that significantly affects how the company operates. To sum up ACV brand
strategy, the author will illustrate the branding strategy roadmap inspired by Graham
Robertson to illustrate the requirements for ACV forming a strategy:
 15

Figure 2.1: ACV’s branding strategy roadmap

2.3. Similarities and differences between theory and practice in branding

strategy.

2.3.1. Similarities
Branding strategies in theory and practice are analysed and implemented based on
several criteria such as the nature of the product, customer agenda, strengths, and
weaknesses. Managers start planning when the company has enough opportunities,
databases, and resources for implementation. Moreover, the company will hire
experienced experts to advise and guide when creating a strategy, whether in theory
or practice. When applying a branding strategy, investors and the board always know
that this is a long process requiring much effort, capital, and safe employment. Those
are the common points that are worth mentioning.
 16

2.3.2. Differences
In theory, we can only have a general view of the company's branding strategy. Our
grounds are all based on numerical data, evidence, and events that have occurred in
previous years. The collected databases are more diverse and flexible because when
going to experiment and survey the market, the management has gained more insights
from third parties, not only from customers and investors but also from the
government for ACV. In addition, the branding strategy is theoretically from the
perspective of economists, whose expertise has created a basic branding foundation
that most firms can use. Fundamental factors in strategy such as vision, purpose,
value, and goals will also be identified differently from reality. There is a fact that,
based on theory, it is easy to identify these factors because, in the corporate
environment, many investors and management have little in-depth understanding of
branding strategy. Lacking information can lead to mistakes in the implementation of
the plan and a misunderstanding of the nature of a strategy.

CHAPTER THREE: COMMENTARY ON THE INTERNSHIP PERIOD AT

AIRPORTS CORPORATION OF VIETNAM

3.1. General evaluation of branding strategy at Airports Corporation of

Vietnam

With the outstanding results ACV has achieved in recent years despite significant
obstacles from the COVID-19 epidemic, this company's branding strategy is on the
right track and operating comprehensively. Among them are outstanding
achievements: winning the title of the best Vietnamese enterprise in Asia for 3
consecutive years, the top 10 typical enterprises of ASEAN 2020, and the top 20 most
famous brands in Vietnam 2020. Especially, Da Nang International Airport was in
the top 30 best airports in Asia. The above shows ACV's superior position in
Vietnam's aviation industry and its general influence in Asia. Moreover, the company
always knows how to renew its brand from time to time, making Vietnam's aviation
industry more attractive in the eyes of international friends, contributing to turning
our country into a favourable area to receive domestic and foreign investment in the
aviation industry.
 17

However, at present, branding strategy with a state-owned enterprise is still a new

field with ACV. The company's sales and market development department is
pursuing a long-term branding strategy until 2025 and is awaiting board approval.

3.2. Recommendation about branding strategy for Airports Corporation of

Vietnam

Having the opportunity to do an internship for a while in ACV, the author realized
that this is a company with a very suitable way of working in the current business
environment and high competitiveness within two or three more years. Therefore,
planning branding strategy must be carefully conducted, avoid following the same
old-fashioned strategies. Large corporations like ACV must be the ones that take the
first steps in creating a unique strategy suitable for the nature of the company to create
the premise for long-term and sustainable development against negative impacts
along with harsh competition from domestic and foreign enterprises. More than that,
the executives of the ACV company must be sober people, have a clear understanding
of branding strategy, and current trends can shift the way of operation. Because as
mentioned above, branding strategy for SOEs is still a new and unfamiliar topic for
many Vietnamese businesses. The managers must have a clear understanding of the
problem and grasp even the smallest topics to avoid unnecessary mistakes in the
future.

3.3. Opportunity for the brand in the future

In the next 5 years, ACV affirms that it will maintain its leading position, mainly
exploiting airports and providing non-aviation services in Vietnam. ACV's current
efforts in all aspects show that in the future, all airports and airports managed by the
group will have thoroughly modern appearances to increase service value, customer
satisfaction and investor expectations. ACV's future issue is increasing operational
efficiency and quickly deploying capacity expansion plans to capture growth
opportunities. The equitization of ACV and its subsidiaries is a positive step. This
project will benefit the shareholders if the process changes in quality and is under the
supervision of stakeholders. At the same time, the State ownership rate must decrease
reasonably.
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In addition to the growth rate of domestic visitors forecast to increase by 18-20%

per year, the shift of foreign direct investment flows from China to Vietnam and
tourists from this country is expected to increase significantly, to be the main
growth driver for international visitors to Vietnam in the coming years. This is an
excellent chance for ACV to expand the market, increase brand awareness, and
increase sales in the coming years. If the results are positive, ACV can expand the
market and have the opportunity to partner with foreign enterprises and pump-up
market share in the aviation industry.
From now to 2025, General Director Vu The Phiet announced that ACV would
continue to implement the strategy of investment, upgrading and modernising airport
infrastructure in the country towards modernity. The company also ensures security
and safety develop quickly, effectively, and sustainably and expands investment
cooperation to attract investment capital to develop airport infrastructure. Another
promise is to promote commercial activities, develop high-quality aviation and non-
aviation services, and improve passenger service quality. Altogether to reach one
ultimate goal: Meeting the growing needs of the aviation industry.
To achieve the goals, ACV will regularly monitor, evaluate and analyse the market
situation promptly with solutions to perform tasks to ensure profitable production and
business activities and ensure operating cash flow, business and investment. The
company will continue to apply solutions to maximise the savings of regular
operating costs, investment management, and strict control of spending sources.
 19

CONCLUSION

In the market economy, especially in the context of world economic integration,

competition in service sectors, including aviation services provided by the Airports
Corporation of Vietnam (ACV), is becoming more intense. That competition forces
managers to constantly find and apply measures to improve the efficiency of their
business activities. Building an effective branding strategy is the right step that ACV
is taking through the general operating environment of the entire economy.
Competitiveness first depends on the production, business and operational efficiency
of ACV, the aviation industry and the country's business investment environment
with essential factors such as macroeconomic orientation. With the high demand for
transportation by plane worldwide, experts believe that the aviation industry will be
hotter than ever. This forcast will eventually lead to the company's growth in
investing and exploiting airports like ACV with high competitiveness. ACV needs to
take action immediately to build and renovate not only infrastructures but also the
business strategy to continue to be the leader in the economy in years to come. By
starting planning and conducting a branding strategy, the author believes that change
and adaptation in ACV is a process that requires resources and effort from the board.
However, every enterprise needs to do the strategy in the end. First steps are always
challenging for a leader such as ACV, but the company has confirmed its power and
reputation in the region with the right strategic plan.
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REFERENCE

1. Airports Corporation of Vietnam, 2016, Company Public Information

2. Airports Corporation of Vietnam, 2021, Annual Report
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Nam xuất sắc châu Á
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https://journals.sagepub.com/doi/pdf/10.1177/002224298104500202

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https://www.oberlo.com/blog/brand-strategy

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