Vietnam Airlines: The Untold Story

Khoa Truong An Nguyen¹, Hai Huyen Thanh Truong²

(1. International Training Centre, Thu Dau Mot University, Vietnam; 2. Business Faculty, Thu Dau Mot University, Vietnam)

Abstract: This case study delves into the operations of Vietnam Airlines (VNA) in the domestic market, and its efforts to achieve global airline status. The external factors and challenges that affect its business operations are identified, while the development strategy to improve its position in the aviation industry market is highlighted. The customer-first strategy is considered the key to improving VNA’s position in the market. This strategy emphasizes on the realization of customer satisfaction, as the route towards business success. VNA also exploited the benefits of cooperation programme, to expand its business market. To go global, VNA needs to work hand in hand with other airlines in the world. A joint venture is the most favourable means for VNA to step into the international market. However, while a joint venture facilitates the expansion of business internationally, and ensures sustainable growth, the risks and challenges that come with this strategy cannot be sidestepped. The risks, challenges and opportunities associated to the conducting business internationally, are discussed during this study.

Key words: Vietnam Airlines, entry mode, strategic management, international market

JEL code: M