This study examines the role of innovation in brand promotion to foster sustainable development in Vietnam’s traditional craft villages. Although these villages make significant contributions to the national economy and culture, many face substantial challenges from modernization and intense market competition. Specifically, villages specializing in products such as Phu Lang pottery, Dong Ky carpentry, and Quan Ganh glutinous rice cakes still rely heavily on traditional word-of-mouth promotion, with limited adoption of digital marketing. Using a qualitative research approach and a case study design, this research involved interviewing 52 business owners, artisans and sellers across the three villages to analyze their current practices and identify key influencing factors. The collected data was analyzed using content and thematic analysis. The findings indicate that the prevalence of traditional methods, limited access to digital marketing, and low awareness of promotional innovation are the primary obstacles to growth. Key factors influencing these challenges include craft village traditions (which serve as both an advantage and a barrier), financial resources, craftsmanship skills, and local support policies. Based on these findings, the study proposes strategic solutions and policy recommendations aimed at fostering comprehensive innovation in brand promotion. These include enhancing digital marketing capabilities, improving product quality, and strengthening support from local authorities. The conclusion highlights that with concerted efforts from businesses and robust government support, traditional craft villages can successfully navigate the challenges of modernization, thereby preserving their cultural heritage and ensuring a sustainable economic future.
