Vietnam Value Program faces adjustments

09:48 | 21/05/2018 Economy- Society

(VEN) - The Vietnam Value Program has contributed to positioning Vietnamese brands in export markets since it was approved by the prime minister in 2003. More and more sectors with export potential, such as rice and other food, are building brands for their products within the framework of the program. However, economists suggest the program needs to be adjusted and updated to keep pace with domestic and global trade developments. 

vietnam value program faces adjustments

Positive impacts

According to Vu Ba Phu, Director of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade (MoIT), the number of products eligible for the Vietnam Value title has grown steadily, from 30 companies in 2008 to 88 in 2016. The program has helped many companies win the trust of domestic and foreign customers. Some of these brands, such as Viettel, Vinamilk and Hoa Phat, are now firmly positioned in the global market and valued at billions of US dollars. “The program promotes not only nationally-recognized brands but also Vietnamese products and the Vietnamese people,” economist Vo Tri Thanh said.

In the framework of the program, the MoIT has launched a brand-building program for specific sectors and is coordinating with the Ministry of Agriculture and Rural Development to build and manage brands for shrimp, rice, tra and basa fish. These products have reached the shelves of supermarkets in China, the US and the EU. However, their sales volume remains limited.

The brand-building program for the food sector has entered its fourth phase (2018-2020) with various advertising, marketing and training activities. Started in 1994, the program is aimed at positioning Vietnam as a “food basket” of the world. It proposes a trademark structure and brand identification system for the Vietnamese food sector and its specific segments.

Associate Professor, Dr. Nguyen Quoc Thinh, consultant to the Vietnam Value Program, attaches great importance to building brands for sectors. In the context of growing protectionism in global trade, as well as increasing competition pressures, it is necessary to maintain and tighten linkages among businesses in the same sector, he said. The brand of a sector and brands of businesses operating in that sector are interactive, helping enhance the value of brands and enabling them to win consumer trust and penetrate the market.

Associate Professor, Dr. Nguyen Quoc Thinh said the MoIT has coordinated with branding experts to compile a document providing guidance for building sectorial brands. Major steps include formulating strategies, implementing them through projects, and assessing the results in each period. The document calls for special attention to selecting suitable branding models and setting up specific brand identification systems, building and developing perceived values of products and brands, and building and developing brand awareness.

New orientation

Since its inception, the Vietnam Value Program has yielded encouraging results. However, in light of economists’ recommendations, a government decree (28/2018/ND-CP) on implementation of the Law on Foreign Trade Management includes a section pertaining to a national brand-building and development program.

According to Vu Ba Phu, the Vietnam Value Program’s objectives include building good images of Vietnamese brands, improving domestic and foreign distributor awareness, promoting tourism development and foreign investment attraction.

Free trade agreements Vietnam has signed are expected to open opportunities for Vietnamese goods to penetrate foreign markets. However, ensuring traceability is crucial to preventing Vietnamese goods from being imitated and protecting them against unhealthy competition.

“Brand building and management has become more important, requiring innovation and joint efforts between the government, the business community and social organizations. Each party involved in the branding process should be deeply aware of its responsibility so that joint efforts can be made to overcome difficulties arising from the new global trade situation,” Vu Ba Phu said.

The Ministry of Industry and Trade has assigned its member units to compile a draft guiding the implementation of Government Decree 28/2018/ND-CP, laying the foundation for sectors, businesses and localities to implement the Vietnam Value Program more effectively.

Viet Nga