Vietnamese firms thirsty for national brands

09:47 | 20/05/2019 Companies

(VEN) - The Vietnam Trade Promotion Agency under the Ministry of Industry and Trade recently held the Vietnam Brand Forum 2019 with discussions focusing on orientation for building a National Brand Strategy suitable to the country’s development.

vietnamese firms thirsty for national brands

Success stories

TH True Milk, a major brand in the Vietnamese milk sector, has carved out a niche in the global market. Ngo Minh Hai, Chairman of the Board at the TH Group, said over the past decade, TH True Milk has made continuous efforts to develop its brand, considering quality as the core value of its brand. At the same time, the group has created new products according to global trends in technology and consumption. The successful results it has achieved encourage the group’s further efforts to upgrade the TH True Milk brand to new highs. “Traditionally, brands are business assets and values. When brands become nationally recognized and the pride of the nation, they will bring greater benefits to businesses and the value of brands will increase,” Ngo Minh Hai said.

According to Tran Uyen Phuong, Deputy General Director of the Tan Hiep Phat Group, building the Number 1 brand was a risky decision in the context of counterfeits and imitations swamping the domestic beverage market. Initially, it was even difficult to maintain the presence of its products in the market. Over the past 18 years, however, Tan Hiep Phat has patiently overcome numerous challenges and turned Number 1 into a leading brand in the Vietnamese beverage market.

Vietnam’s national brand has contributed significantly to the development of businesses in all fields. Survey results show that 68 percent of Vietnamese businesses want to build national brands. Changes in business awareness have led to brand building efforts and the presence of reputable Vietnamese brands in the global market. Vietnam’s national brand was valued at US$235 billion by Brand Finance in 2018, ranking 43rd among the most valuable national brands worldwide.

vietnamese firms thirsty for national brands

New approaches

However, according to Nguyen Huu Nghia, Deputy Director of the Central Economic Committee, the presence of Vietnamese brands in the global market remains limited, and a certain percentage of domestic companies are yet to be interested in building national brands for their products. “Are the core values of the National Brand Program still suitable to the new situation? Have state authorities tried their utmost to support brand building efforts? Are businesses really interested in building and effectively managing brands?” Nguyen Huu Nghia asked.

Nguyen Quoc Thinh, Head of brand management studies at Thuongmai University, said the Vietnam National Brand Program has been implemented for more than 15 years and currently needs new, longer-term approaches to adapt to the changing economy. In the initial period, the program was based on product and services brands. However, it could also be based on other elements, such as collective brands associated with sectors and local specialties.

In fact, seeking new approaches to the Vietnam National Brand Program, the Ministry of Industry and Trade is working out a plan to build the National Brand Program until 2030, with a vision towards 2045, and will submit it to the government for approval along with a regulation on management and implementation of the program.

The program will combine brand building efforts with investment attraction and cultural and tourism promotion activities, aiming to make Vietnam’s national brand attractive to importers, tourists and investors.

Apart from businesses with nationally recognized brands, the program will also recognize collective brands and geographical indications, while at the same time promoting the popularization of these brands.

Vu Ba Phu, Director of Vietnam Trade Promotion Agency:

Corporate brands and national brands have a win-win relationship. Therefore, the National Brand Program should be

a companion of businesses, helping them upgrade and protect their brands.

Viet Nga