National Branding is the subjective perceived perceptions about a country by external stakeholders such as potential customers. Global consumers have different positive, negative, or neutral connotations of countries in their minds. According to their perceptions of the images of the countries, individuals may show the buying behaviour or stay away from the products or services offered by the companies in those countries. The economic development stage of countries, international and internal political factors, formal and informal institutions, technology, traditions, culture, geographical features and natural beauties can be counted as affecting the country's image.
The country brand can be used as an important tool to create a positive perception by promoting the goods and services of countries, raising awareness about a country, increasing export, import, and tourism revenues, and attracting foreign investors and skilled expatriates. A positive country image will also create a positive perception of companies' products originating in that country. It is also interesting that firm’s competitiveness and overall quality of services and products creates a positive country image. This is a two-way process. A country's image helps companies be more competitive in global markets, and the competitiveness of companies also strengthen the positive image of nations.
The country's image and competitiveness of companies strengthen each other and create a synergic effect. For example, German technology, Swiss watches, banks and chocolate, New Zealand and Australian meat and agricultural products, French wine, Italian fashion products, Japan's automobiles, Korea's smartphones, and dramas, Thailand and Malaysia's tourism industries, Singapore's financial sector and Vietnam's rice and coffee can be given as examples of the positive image of the country related to specific industries. Studies have shown a positive relationship between the country's image and global customers' willingness to purchase products and services and being ready to pay extra for the products from a country with a positive image.
The creation of all these positive images is related to both the long-term strategic investments of the states and the competitiveness of the private sector. Vietnam is very strongly integrated into the world economy, and the free trade agreements signed by Vietnam also contribute to the rooting of this integration. The Vietnamese government is working long-term to raise positive awareness of Vietnamese marks. Vietnam National Brand Program (THQG) aims to increase the attractiveness of Vietnam by contributing to the competitiveness of Vietnamese businesses in domestic and foreign markets.
