The impact of ESG on brand trust and customer engagement in Ho Chi Minh City: A case study in food and beverage industry

Abstract

As the world increasingly focuses its resources on sustainable business practices, Environmental, Social, and Governance (ESG) factors have become increasingly important to consumers in their brand selection and usage decisions. While there has been extensive research on the role of ESG in investment decisions, its impact on consumer behavior in Vietnam remains underexplored. This study aims to bridge this gap by examining the direct and indirect effects of ESG practices on Brand Trust and Customer Engagement in the Food and Beverage (F&B) industry. Using a mixed-methods approach combining qualitative and quantitative data, the research includes surveys of 385 consumers in Ho Chi Minh City conducted from March to May 2024. The findings confirm that ESG factors have both direct and indirect effects on Customer Engagement through Brand Trust within the F&B sector. The findings confirm that the Environmental factor has the strongest impact on Brand Trust and Customer Engagement, followed by the Social factor, while the Governance factor has the lowest direct influence.. The study highlights that effective ESG strategies not only enhance trust but also increase consumer attachment to F&B brands.