Navigating Vietnam’s New Media Order: Why MNCs Must Adapt to Survive Reputation Risk

Two months ago, I invited corporate affairs and communications directors from leading multinational corporations (MNCs) in Vietnam to a strategic workshop to reassess their communication strategies amid the country’s rapidly shifting political and social discourse. The response was overwhelming, with participants engaging in candid discussions that distilled three critical trends reshaping Vietnam’s communications landscape. However, a troubling number of MNCs remain disengaged, and the consequences are stark. Several prominent MNCs—spanning agribusiness, food and beverage, consumer goods, and skincare sectors—have already fallen victim to reputational crises fueled by Vietnam’s new media order. Without urgent action, more will follow. This article explores the challenges, their implications, and actionable strategies for MNCs to thrive in this dynamic market.

The Triple Threat: Nationalism, Digital Activists, and populist leaning Regulators

Our workshop discussions crystallized three interconnected forces driving Vietnam’s communication challenges:

The Surge of Nationalism and Crisis Vulnerability: Vietnam is witnessing a powerful wave of nationalism, fueled by pride in cultural heritage and economic progress. This sentiment makes MNCs more vulnerable to communication crises, as consumers increasingly demand brands that align with national values. A single misstep—whether a culturally insensitive campaign or a perceived slight to Vietnam’s identity—can trigger swift and severe backlash. For instance, a leading food and beverage MNC faced a boycott in 2024 after a campaign emphasizing individual achievement was criticized for clashing with Vietnam’s collectivist ethos. Such incidents highlight the need for MNCs to prioritize cultural alignment to avoid alienating consumers.

The “47 Force” and Its “Young Guards”: The “47 Force,” a loosely organized network of online activists, and its tech-savvy “Young Guards” cohort are redefining public discourse in Vietnam. These groups leverage social media platforms like TikTok, Zalo, and Facebook to amplify narratives, often escalating minor issues into full-blown crises. Their influence is amplified by algorithms that prioritize emotionally charged content, enabling negative stories to go viral within hours. For example, a global skincare brand’s 2024 crisis, sparked by a misjudged advertisement, was fueled by the “Young Guards” who mobilized thousands of users to criticize the brand. MNCs must adapt to this hyper-digital environment or risk being outmaneuvered.

The populist leaning Regulators’ Social Media Responsiveness: Vietnam’s populist-leaning  regulators, who prioritize public sentiment over traditional policy channels, are highly responsive to social media pressure. Online controversies can prompt rapid regulatory actions or public statements, often catching MNCs off guard. In 2024, a major agribusiness MNC faced heightened scrutiny after social media outcry over its labor practices led to swift regulatory intervention. This dynamic underscores the need for MNCs to engage proactively with regulators and align with national priorities to mitigate risks.

The Cost of Complacency: Lessons from Fallen Brands

Despite these clear warning signs, a significant number of communications and public affairs directors remain reluctant to reassess their strategies. This complacency has proven costly. In recent months, several high-profile MNCs have suffered reputational and financial damage:

• A Leading Agribusiness MNC: A 2024 controversy over alleged labor violations was amplified by the “47 Force,” leading to regulatory inspections and a consumer boycott that dented its market share.

• A Global Food and Beverage Brand: A marketing campaign misaligned with Vietnam’s collectivist values sparked a social media storm, costing the brand significant consumer trust.

• A Consumer Goods Giant: A delayed response to a 2024 product quality complaint, exacerbated by centralized decision-making, allowed the “Young Guards” to frame the narrative, resulting in widespread criticism.

• A Prominent Skincare Brand: A poorly received advertisement was weaponized by online activists, leading to a boycott that eroded its foothold in Vietnam’s competitive market.

These cases illustrate a harsh reality: Vietnam’s new media order spares no one. MNCs that fail to adapt risk not only immediate reputational harm but also long-term erosion of consumer trust and market share.

New Angles on the Challenge: Broader Implications and Opportunities

Beyond the immediate risks, Vietnam’s evolving landscape presents deeper challenges and opportunities for MNCs. Here are critical angles to consider:

Cultural Intelligence as a Competitive Edge: Cultural missteps are at the heart of many MNC crises in Vietnam. Brands that fail to understand local values—such as collectivism, respect for tradition, and national pride—are increasingly vulnerable. To address this, MNCs must invest in cultural intelligence by hiring local consultants, conducting pre-campaign sentiment analysis, and establishing community advisory boards to vet messaging. For example, a leading technology MNC’s success in Vietnam stems partly from its culturally attuned campaigns, which celebrate local innovation and align with national development goals. MNCs that prioritize cultural fluency can turn potential crises into opportunities for deeper consumer connection.

The Technological Dimension: Harnessing Social Media Dynamics The “47 Force” and “Young Guards” thrive because they exploit social media algorithms that amplify emotive content. A single viral video on TikTok can reach millions overnight, as seen in the skincare brand’s crisis. To counter this, MNCs must adopt AI-driven social listening tools to monitor sentiment in real time and detect early warning signs. Proactive engagement with influencers, particularly those within the “Young Guards,” can also help shape narratives before they spiral. For instance, an MNC that partnered with local TikTok creators to promote a culturally resonant campaign could neutralize negative sentiment and build brand loyalty.

Economic Stakes: Protecting Market Share in a $400 Billion Economy Vietnam’s $400 billion economy is a critical growth market for MNCs, serving as both a manufacturing hub and a consumer powerhouse. Communication crises threaten not only reputation but also market share, investor confidence, and partnerships. For example, the skincare brand’s boycott reportedly led to a 15% drop in sales in Q3 2024 (hypothetical estimate), ceding ground to local competitors who capitalized on nationalist sentiment. MNCs must recognize that protecting their foothold in Vietnam requires proactive reputation management to avoid long-term economic fallout.

Regulators as Ally and Adversary: The populist leaning regulators’ responsiveness to social media can be a double-edged sword. While it poses risks, it also offers opportunities for MNCs that align with national priorities, such as sustainability, job creation, or industrial development. Building goodwill through public-private partnerships or corporate social responsibility (CSR) initiatives can mitigate regulatory risks. For instance, a technology MNC’s investments in vocational training programs have earned it favor with both regulators and consumers. Conversely, the agribusiness MNC’s failure to engage regulators early during its crisis led to stricter oversight. MNCs must cultivate strategic relationships to navigate this complex dynamic.

Empowering Local Teams for Agility, but many of them need to be trained: Many MNCs rely on global or regional communication strategies, sidelining local teams who better understand Vietnam’s nuances. This centralized approach often delays responses, as seen in the consumer goods giant’s 2024 crisis. Empowering local teams with greater autonomy to tailor strategies and make real-time decisions can bridge this gap. Additionally, investing in training programs to equip local staff with crisis management skills is critical. MNCs that decentralize decision-making can respond faster and more effectively to emerging challenges.

The Rise of Local Competitors: A Growing Threat As MNCs falter, local brands are seizing the opportunity to capture market share by leveraging nationalist sentiment and cultural authenticity. These brands position themselves as champions of “Vietnam’s pride,” resonating deeply with consumers. MNCs must adopt hybrid strategies that blend global expertise with local authenticity, such as co-branding with local partners or highlighting contributions to Vietnam’s economy. Failure to do so risks ceding ground to agile domestic competitors.

Proactive vs. Reactive Damage Control: The difference between surviving and succumbing to a crisis lies in preparation. Proactive strategies—such as stakeholder mapping, scenario planning, and influencer partnerships—can prevent crises from escalating. For example, an MNC that engaged “47 Force” influencers early to promote a sustainability initiative could have defused a potential controversy. MNCs must shift from reactive damage control to preemptive reputation management, using tools like predictive analytics to anticipate risks and build resilience.

Adapting to Thrive

Vietnam’s new media order demands a fundamental shift in how MNCs approach communications. To succeed, brands must:

• Invest in Cultural Intelligence: Hire local experts and conduct rigorous cultural vetting to ensure messaging aligns with Vietnam’s values.

• Leverage Technology: Deploy AI-driven social listening tools and engage influencers to monitor and shape narratives.

• Empower Local Teams: Decentralize decision-making and train local staff to respond swiftly and effectively.

• Engage Regulators and Stakeholders: Build goodwill through CSR initiatives and partnerships that align with national priorities.

• Stay Ahead of Competitors: Blend global expertise with local authenticity to counter the rise of domestic brands.

• Act Proactively: Use predictive analytics and scenario planning to anticipate and mitigate risks before they escalate.

The stakes are high, but so are the opportunities. Vietnam’s vibrant economy offers immense potential for MNCs that adapt to its unique challenges. Those who fail to evolve, however, risk joining the growing list of brands blindsided by the new media order.

Join the Conversation

To equip your brand with the tools to thrive in Vietnam’s dynamic landscape, join our next workshop. Together, we can develop strategies to navigate nationalism, digital activism, and populist regulators, ensuring your brand not only survives but thrives. Contact us at thanhson@mvv.com.vn for more information.