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SWOT

Vietnam Airlines has strengths such as its geographical position providing economic exchange and a long history of safety compliance. However, weaknesses include lower rankings than competitors and lower on-time arrival rates. Opportunities exist from Vietnam's growing GDP and tourism. Threats include competition from other carriers, price-sensitive customers, and shortages of pilots and technicians.

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394 views3 pages

SWOT

Vietnam Airlines has strengths such as its geographical position providing economic exchange and a long history of safety compliance. However, weaknesses include lower rankings than competitors and lower on-time arrival rates. Opportunities exist from Vietnam's growing GDP and tourism. Threats include competition from other carriers, price-sensitive customers, and shortages of pilots and technicians.

Uploaded by

Đạt Phạm
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We take content rights seriously. If you suspect this is your content, claim it here.
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I.

Strengths
1. The geographical position of Vietnam at the gateway of regions
Our country is located at the gateway to Southeast Asia, a place of
economic exchanges. With the advantage of being contiguous to four
landlocked countries and adjacent to the sea, our country has become a
place of economic exchange between countries inside and outside the
region, and a gateway to other regions. This is a strong point to pay
attention to when analyzing the SWOT model of Vietnam Airlines.
2. Has a long history of mining safety
Since the end of 2021, VNA has successfully applied for a Foreign Air
Operator Certificate (FAOC) for flights to the US, a country with the
most stringent legal barriers in the world.
The airline also successfully renewed the FAOC certificate in countries.
At the same time, it has carried out the periodic task of assessing the
value of the product. Limiting the operation safety certificate of IOSA of
the International Air Transport Association IATA, review, update and
perform internal assessment of agencies and units, ensuring that VNA's
operations always comply with the highest standards. of the regional and
global aviation industry.
3. Innovative Marketing Strategy
Innovative Marketing Strategy This "rejuvenation" is marked by "shaking
hands" with SpaceSpeakers Group to develop activities and promote the
company's culture and image, reaching out more to the young community
in Vietnam. as well as worldwide. At the same time, Vietnam Airlines
gradually becomes closer to young people when continuously
implementing trending content, using youthful, optimal and creative
images in various formats to help highlight brand elements.
I. Weeknesses
1. On the World Airlines Awards 2018 ranking of Skytrax, the position of
Vietnam Airlines is 50th while that of Thai Airways is 10th. Vietnam's
airline is 40 places lower than Thai Airways. When compared to each
category surveyed by Skytrax, it can be seen that Vietnam Airlines is
lower than Thai Airways in many categories.
2. Low on-time flight rate
On-time rate is 81% and the lowest is Vietnam Airlines with OTP rate of
only 76.3% with 8,862 flights on time out of the total 11,610 flights it
operates in July. This is a weakness that needs attention when SWOT
analysis of Vietnam Airlines.
II. Opportunities
1. Domestic politics is stable and safe
According to foreign experts, political stability has become an advantage
throughout Vietnam's development process, an advantage that not all
countries have.
2. GDP increase
GDP in the second quarter of 2022 was estimated to increase by 7.72%
over the same period last year, higher than the growth rate of the second
quarter of the years in the 2011-2021 period, the General Statistics Office
said. GDP in the first 6 months of 2022 increased by 6.42%, higher than
the growth rate of 2.04% in the first 6 months of 2020.
3. Visitors to/from Vietnam still have high growth
Vietnam welcomed 954,000 international tourists in the first seven months
of 2022, a nine-fold increase over the same period last year. According to
the Vietnam National Administration of Tourism, the growth rate of
foreign visitors averaged 62% per month in the period from January to
July.
III. Threats
1. Surrounded by full service carriers (Full Service Carrier/FSC) and
traditional airlines (Low Cost Carrier/LCC)
In the Vietnamese market, there are currently 6 airlines, namely Vietnam
Airlines, Pacific Airlines, Vasco, Vietjet Air, Bamboo Airways and
Vietravel Airlines. Therefore, the competitiveness of ticket prices, routes,
and frequency of operation between airlines is very high. The rise of low-
cost airlines and the emergence of new airlines make it difficult for
traditional airlines such as Vietnam Airlines. Vietnam Airlines has
continuously petitioned the Government for personnel-related issues,
especially the loss of pilots. Many Vietnam Airlines pilots have applied
for resignation and joined other airlines because they think they are
receiving too low a salary compared to other airlines in Vietnam.
2. The domestic market is price sensitive
In Nielsen's 2019 market research report, Vietnam's price elasticity is
negative 2 - the highest compared to neighboring countries in Southeast
Asia. 80% of consumers polled said they are aware and aware when
prices change.
3. Pilots, technicians are scarce
Currently, domestic establishments have not basically trained pilots. This
forces the airline to hire foreign pilots, and at the same time balance with
domestic pilots to build a phased plan associated with the growth of the
fleet and flight.

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