Lesson 1: National Brand Value Increases Remarkably

Building the image and position of national goods.

For many years, Vietnam has not only been recognized globally as a bright spot in the economic recovery and development landscape, but also in brand building and development. Leading Vietnamese brands have not only made remarkable improvements in both brand value and brand strength index, but have also gradually caught up with global trends.

Accordingly, in the 5-year period from 2019 to 2023, Vietnam's national brand experienced the fastest growth rate in value in the world , at 102%. Specifically, in 2019, the value of Vietnam's national brand was only estimated at 247 billion USD, while in 2023 it reached 498.13 billion USD, recording continuous double-digit percentage growth in brand value.

The improvement in national brand value reflects the efforts and role of businesses in enhancing quality and "courageously" penetrating demanding markets. Photo: VNA

Furthermore, while Vietnamese business brands were not yet featured in international rankings in the early 2000s, by 2022, according to Forbes Vietnam's ranking, the total value of the top 50 brands reached over $36.6 billion, a 36% increase compared to 2021. Of these, businesses with products achieving Vietnamese national brand status accounted for over 60% of the top 10.

According to experts, the "sweet fruits" of the rapid growth in national brand value are the result of efforts across many fronts: politics , diplomacy, economics, culture, and society. This confirms the impressive achievements of the economic and trade integration process through vibrant and robust production and import-export activities.

Speaking with a reporter from the Industry and Trade Newspaper, economic expert Dr. Nguyen Minh Phong commented that this is the result of sound policies and efforts by the Party, State, and Government in reforming the investment and business environment, expanding bilateral and multilateral relations, and supporting import and export.

Furthermore, according to economist Nguyen Minh Phong, the remarkable increase in brand value reflects the dynamism and creativity of Vietnamese businesses; these businesses have continuously strived to overcome numerous difficulties and challenges to build, develop, and manage product and corporate brands, contributing to increasing the value of Vietnam's national brand on the international stage.

Furthermore, according to Brand Finance's 2023 report, the brand value of Vietnamese national brands has seen strong growth in the telecommunications, banking, and food sectors. Commenting on this result, Mr. Nguyen Minh Phong stated that brands in the finance, food, and telecommunications sectors share a common characteristic: a commitment to investing in technology and focusing on community value. This has led to significant improvements in both brand value and brand strength index, contributing to a stronger position in the rankings.

Sharing the same view, Mr. To Hoai Nam – Vice President and General Secretary of the Vietnam Association of Small and Medium Enterprises – emphasized that the improvement in national brand value has demonstrated the efforts and role of businesses in improving quality and "courageously" penetrating demanding markets with strict regulations such as the US, EU, and Japan… “The well-directed efforts of the business sector have made a very important contribution to Vietnam’s impressive results in building and developing its national brand, ” Mr. Nam said.

Economist Dr. Nguyen Minh Phong: "Businesses have continuously strived to overcome many difficulties and challenges to build, develop, and manage product brands." Photo: Can Dung

According to experts, achieving high rankings and increasing brand value is also due to the effective impact and motivation of the Vietnam National Brand Program in supporting the building and promotion of the image and national brand of Vietnam, famous product brands, strong corporate brands, and leading enterprises in the market.

According to the Ministry of Industry and Trade, in recent times, with the support of the Vietnam National Brand Program, many Vietnamese corporations and businesses have become aware of the important role of branding as a key to increasing the value of their products and businesses. As evidence, many Vietnamese brands have made a significant impact on regional and global markets.

In terms of product branding, Viettel is a prime example. Viettel is the only Vietnamese enterprise to be included in the "Top 500 Most Valuable Brands in the World 2023" (Global 500), ranking at position 234. Furthermore, Viettel continues to maintain its position as the number one telecommunications brand in Southeast Asia and is among the top three most valuable brands in the region.

In particular, regarding dairy products, Vinamilk is also a prime example, maintaining its ranking at 6th in the top 10 most valuable dairy brands globally and 2nd among the strongest global dairy brands according to Brand Finance's ranking. Building on its national brand foundation, TH True Milk has also made significant strides in the global market, gaining trademark protection in many countries. In the domestic market, the company has expanded its investments in projects across numerous provinces and cities. TH True Milk has become a familiar brand trusted by consumers.

Creating motivation for brand building for businesses.

According to Mr. Nguyen Minh Phong, a country with many businesses and strong brands will be a crucial foundation for elevating the national brand. Therefore, branding is playing an increasingly important role in the competitive and development strategies of each business, industry, locality, and the entire nation.

Awareness of branding for corporate products remains limited and challenging. Photo: VNA

However, regarding the Vietnamese brand landscape, many experts believe that there are still many areas that need improvement, as there are not many strong brands due to limited resources among businesses and a lack of awareness among many businesses about the mission of brand building.

According to the 2020 Business Survey Report of the Ministry of Industry and Trade, the image of Vietnamese product branding remains weak, as only 20% of businesses invest in brand building and focus primarily on registering brands in Vietnam, neglecting registration in foreign markets and lacking attention to brand exploitation and management. Businesses have not consistently promoted their brand image through mass media, and high-value logos are rarely seen.

In particular, reputation and product quality are the two factors most often prioritized when it comes to branding (63.4%). However, nearly 50% of businesses do not have a dedicated marketing or branding department; 49% of businesses have their marketing or branding directly managed by the board of directors. Most people in brand management roles are trained domestically, except for a very small number (less than 5%) who are trained abroad. Up to 20% of businesses do not invest in brand building. Over 70% of businesses invest less than 5% of their sales revenue in building and developing their brands...

Agricultural expert Hoang Trong Thuy: "The mindset of outsourcing and itinerant trading is still prevalent, so most businesses are not interested in and are hesitant to build brands." Photo: Can Dung

Sharing his insights on the difficulties and limitations in brand building for businesses and industries, agricultural expert Hoang Trong Thuy stated that the market is increasingly demanding in terms of product and service quality. Apart from large enterprises, most domestic businesses in the agricultural and processing sectors lack the resources to create products that meet brand standards. Therefore, many businesses are hesitant to invest in brand building and often rely on larger corporations and conglomerates.

Furthermore, given market fluctuations and constantly changing consumer trends, Mr. Hoang Trong Thuy believes that businesses are uncertain about whether their products will enter the market. Consequently, businesses pay little attention to investing in brand building for stable, long-term development. On the other hand, the prevailing mindset of outsourcing and itinerant trading also means that most businesses have not yet focused on brand building.

"In particular, the overlapping management between ministries and agencies is inadvertently making it difficult for businesses to build brands ; and the number of products that have built brands and registered trademarks and geographical indications both domestically and internationally is still limited, so most goods are still exported through intermediaries and do not have official recognition, " Mr. Thuy stated.

Despite being one of the successful businesses in establishing its brand not only domestically but also internationally, when it comes to building and positioning product brands, the Chairman of the Board of Members of Vinh Hiep Co., Ltd. - Mr. Thai Nhu Hiep - has to admit that this is a difficult problem, especially in the context of a market that sets many strict standards, along with increasingly fierce competition.

According to Mr. Thai Nhu Hiep, for coffee production and export businesses, building a brand is even more challenging. He explains that to build a brand in the international market, businesses must understand consumer culture and demonstrate compliance with environmental and social criteria. This necessitates investment in production technology and the development of raw material sources. However, most businesses currently face difficulties with capital, qualified personnel, and market knowledge.

“ To venture into the global market , Vietnamese businesses still have much work to do . In particular, current FTAs ​​present a bright opportunity for exporting goods, but businesses must identify what needs to be done and what they can achieve in the integration ‘playing field . ’ Therefore , the Government and relevant ministries and agencies need policies to support businesses in overcoming difficulties in market development and building product and industry brands,” Mr. Hiep stated.

Lesson 2 : Building and developing national brands, creating new value and strength for the country.

Source: https://congthuong.vn/bai-1-gia-tri-thuong-hieu-quoc-gia-tang-vuot-bac-trai-ngot-hoi-nhap-su-nang-dong-cua-doanh-nghiep-310588.html