Vietnam's Nation Brand in the Regional Knowledge Economy: A Soft Power Audit

Executive Summary

Vietnam ranks #52 globally in the Brand Finance Global Soft Power Index 2025 (score: 39.9/100) — 5th among ASEAN nations, behind Singapore (#21), Malaysia (#36), Thailand (#39), and Indonesia (#45). While the score improved from 33.8 (2021) to 39.9 (2025), global rank slipped as other nations improved faster. Significant gaps remain in governance perception, diplomatic influence (#87), and media trustworthiness that threaten Vietnam's ambition to become a knowledge economy hub.

This audit maps Vietnam's soft power assets and gaps across three analytical frameworks, concluding with strategic recommendations for policymakers seeking to strengthen the nation's competitive position in Southeast Asia's evolving knowledge economy.

Framework 1: The Soft Power Landscape

ASEAN Comparative Position

Vietnam competes for talent, investment, and influence in a region where soft power increasingly determines economic outcomes. The table below benchmarks Vietnam against key ASEAN peers across multiple dimensions of national attractiveness.

Key finding: Vietnam's soft power ranking (#52) significantly trails its economic weight. Despite being ASEAN's 5th largest economy and 3rd largest by population, Vietnam punches below its weight in perception metrics. However, Vietnam excels in specific categories: Future Growth Potential (#15 globally) and Food the World Loves (#16 globally) — tangible, commerce-driven attributes that provide a foundation for brand building.

Pillar-by-Pillar Analysis

The Brand Finance methodology breaks soft power into seven pillars. Vietnam's radar chart reveals an uneven profile — strong on Business & Trade but weak on Governance and Media & Communication.

Framework 2: The Nation Brand Hexagon

Simon Anholt's Nation Brand Hexagon provides a complementary lens, measuring how external audiences perceive a country across six dimensions: Exports, Governance, Culture, People, Tourism, and Investment Climate.

Pillar Analysis

Tourism (74) — Strongest Pillar Vietnam's tourism sector recovered to 12.6 million international arrivals in 2024, approaching pre-pandemic levels. Natural assets (Ha Long Bay, Phu Quoc, Mekong Delta) and cultural heritage (Hoi An, Hue) provide durable competitive advantages. However, infrastructure quality and service standards lag Thailand, limiting premium positioning.

People (72) — Underutilized Asset International surveys consistently rate Vietnamese people highly for warmth, hospitality, and work ethic. The 5.3 million-strong diaspora — particularly concentrations in the US (2.2M), France (300K), and Australia (300K) — represents an underutilized soft power asset. Diaspora engagement programs remain underfunded relative to India, China, or the Philippines.

Culture (68) — Emerging but Underleveraged Vietnamese cuisine has achieved global recognition — pho and banh mi now appear in major cities worldwide. However, Vietnam lacks the entertainment export engine that powers Korean (K-pop, K-drama) or Japanese (anime, J-pop) soft power. No Vietnamese media property has achieved significant international reach.

Exports (62) — Manufacturing vs. Innovation Narrative Vietnam is the world's 2nd largest smartphone exporter and a major electronics manufacturing hub. Yet the "Made in Vietnam" brand carries limited premium — products are perceived as manufactured rather than designed or innovated in Vietnam. This manufacturing-versus-innovation gap constrains brand value.

Investment Climate (58) — Mixed Signals FDI inflows remain strong ($18.5B in 2023), but regulatory complexity, intellectual property concerns, and infrastructure gaps outside major cities create friction. Vietnam scores well on investment attraction but poorly on ease of doing business (ranked #70 globally).

Governance (45) — The Critical Gap Governance is Vietnam's weakest pillar — and the one that most constrains other dimensions. Press freedom rankings (ranked #174 by RSF), transparency perceptions, and rule-of-law concerns create headwinds for talent attraction and premium brand positioning. This is the single most significant constraint on Vietnam's soft power trajectory.

Framework 3: Joseph Nye's Three Pillars

Political scientist Joseph Nye's foundational soft power framework identifies three pillars: Culture, Political Values, and Foreign Policy. Vietnam's performance across these pillars reveals structural strengths and persistent gaps.

The Bamboo Diplomacy Advantage

Vietnam's foreign policy — characterized as "bamboo diplomacy" for its flexibility in balancing major powers — represents a genuine soft power asset. The country maintains 17 strategic and comprehensive partnerships, including with both the United States and China. Vietnam's CPTPP and RCEP membership, EU-Vietnam FTA, and UN peacekeeping contributions demonstrate multilateral engagement capacity.

The Political Values Constraint

Vietnam's single-party system creates inherent tension with Western governance norms that shape global soft power indices. Rather than attempting to compete on metrics designed around liberal democratic values, Vietnam's nation brand strategy should emphasize:

• Stability as value — Consistent policy environment, peaceful development
• Development outcomes — Poverty reduction, infrastructure delivery
• Pragmatic competence — "Getting things done" narrative

Framework 4: Knowledge Economy Position

Soft power in the 21st century increasingly derives from innovation capacity and knowledge economy positioning. Vietnam's aspirations to move up the value chain depend on perceptions of its innovation ecosystem.

The Innovation Paradox

Vietnam ranks #44 in the Global Innovation Index 2024 (score: 36.2) — remarkably high for its income level (1st among lower-middle-income countries, 4th in ASEAN). This "innovation overperformer" status should be a central nation brand message. However, several structural gaps constrain translation into soft power:

R&D Investment Gap: At 0.53% of GDP, Vietnam's R&D spending is half of Thailand's (1.14%) and a quarter of Malaysia's (1.04%). Without significant R&D investment increases, the "innovation hub" narrative lacks foundation.

Patent Surprise: Vietnam filed 1,021 resident patents in 2020 — ranking 3rd in ASEAN behind Singapore (1,778) and Indonesia (1,309), ahead of Malaysia (989) and Thailand (863). This suggests stronger domestic innovation capacity than perception metrics reflect.

STEM Talent Pipeline: 28% of Vietnamese graduates are in STEM fields — competitive regionally but insufficient for knowledge economy leadership. The larger constraint is brain drain: top talent still flows to Singapore, the US, and Europe.

Strategic Recommendations

Priority 1: Governance Perception (High Priority, Low Capability)

The single highest-leverage intervention is improving governance perception. This does not require political system change — it requires:

• Transparency initiatives: Publish government data systematically, improve English-language information access
• Anti-corruption visibility: Publicize enforcement actions internationally, not just domestically
• Regulatory predictability: Reduce policy uncertainty that creates friction for investors and talent

Priority 2: Innovation Narrative (High Priority, Moderate Capability)

Vietnam should own the "innovation overperformer" narrative:

• Benchmark messaging: "Ranked #1 in innovation among lower-middle-income countries" is a credible, differentiated claim
• Tech startup promotion: Showcase Vietnamese unicorns (VNPay, VNG, Sky Mavis) internationally
• R&D investment commitment: A credible roadmap to 1% of GDP R&D spending would signal seriousness

Priority 3: Cultural Export Capacity (Moderate Priority, Low Capability)

Long-term cultural soft power requires investment in:

• Entertainment industry development: Incentives for Vietnamese content creation with export potential
• Language and cultural institutes: Establish Vietnamese cultural centers in key diaspora and partner countries
• Cuisine diplomacy: Formalize the "pho diplomacy" approach with government backing

Priority 4: Talent Circulation (High Priority, Moderate Capability)

Reverse brain drain through:

• Diaspora engagement programs: Formalize connections with overseas Vietnamese professionals
• Return incentives: Tax benefits, research funding, housing support for returning talent
• International student marketing: Position Vietnam as regional education destination

Conclusion: The Soft Power Imperative

Vietnam's 2025-2035 development plan cannot succeed through hard economic metrics alone. The country's ability to attract the talent, investment, and partnerships required for knowledge economy transition depends fundamentally on soft power — on how Vietnam is perceived, valued, and trusted internationally.

This audit reveals a country with genuine assets (diplomatic flexibility, people warmth, cuisine recognition, tourism appeal) constrained by structural gaps (governance perception, innovation infrastructure, cultural export capacity). Closing these gaps requires deliberate, sustained investment in nation branding — the kind of multi-decade effort that transformed Singapore from third-world to first-world in international perception.

The opportunity cost of inaction is clear: Vietnam risks being perceived as a manufacturing location rather than an innovation destination, a tourism spot rather than a knowledge hub, a place to make things rather than a place to create value.

The soft power agenda is not a luxury. It is a prerequisite for the economic future Vietnam seeks.

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