10:19 | 29/05/2017 Trade
(VEN) - Despite fierce competition with imported goods, locally made products awarded the Vietnam Value title remain firmly positioned in the market and continue to develop strongly. This title has become a passport for Vietnamese goods to reach consumers.
Vietnamese brands’ high value
Growing import value, high trade deficit, and the dominant presence of imported goods in Vietnamese distribution channels have once again raised public suspicions about the competitiveness of Vietnamese products. According to the Ministry of
Industry and Trade (MoIT), however, many Vietnamese products and brands remain firmly positioned in the market and have won consumer trust, especially products which have been honored by the National Branding Program known as Vietnam Value.
The MoIT was assigned by the government to implement this program in order to promote national images and values through Vietnamese brands. Businesses winning this title will become leading ones in fields where they operate thanks to nonstop
innovation efforts to improve product quality. Since 2006, nearly 300 businesses have won the Vietnam Value title (30 businesses in 2008, 43 in 2010, 54 in 2012, 63 in 2014, and 88 in 2016), of which many have won the title several times.
According to Le Viet Nga, Deputy Director of the MoIT’s Domestic Market Department, many Vietnamese brands, such as Vinamilk, Th Truemilk, Rang Dong lamps, Dien Quang lamps, Thien Long ballpoint pens, and hong ha office stationery are firmly positioned in the market. Their products account for 80-90 percent of goods of the same categories present in domestic distribution channels, and have been exported with high value.
Thien Long Group has been honored with the Vietnam Value title many times. Last year, its revenue reached VND2.16 trillion, 14.8 percent higher compared with 2015; after-tax profit reached VND240.07 billion, up 27.6 percent compared with 2015 and 11.5 percent compared with the plan approved by the group’s shareholders. Thien Long’s products have won the
trust of domestic consumers. Eighty-five percent of its revenue comes from the domestic market. The group also exports its products to more than 50 foreign markets. Last year, its export value reached VND327.4 billion, a rise of 30.7 percent compared with 2015.
Support for brand-building efforts
Most Vietnamese businesses are small to medium in size and their awareness of the importance of brands remains limited. They have yet to pay attention to building brands and think simply that what they need to do is invest in advertising and
marketing, or just design a logo. In fact, to build a brand that can win the Vietnam Value title, businesses need to do many things simultaneously, including improving technology and management. Their awareness of what brands can bring will
enable businesses to make the right investment decisions.
According to the MoIT’s Vietnam Trade Promotion Agency (Vietrade), the ministry will assist businesses in building and promoting their brands in both domestic and foreign markets. The agency will coordinate with research institutions to assist
agricultural businesses in applying for geographical indication protection. Vietrade will also organize training activities and coordinate with overseas Vietnamese trade offices to help businesses which have won the Vietnam Value title promote their
For their part, many companies agreed that the state should create a new playing field to promote connectivity among businesses. Vietnam Value title winners should be prioritized and given opportunities to become contractors for state investment projects - this will encourage other businesses’ brand-building efforts. To prevent counterfeiting, which is one of the biggest concerns in the current period, the state should take stricter measures to deal with fraud.