|Amid COVID-19, Vietnam's brand value skyrockets 29 per cent to $319 billion |
Brand Finance stated that Vietnam is the fastest-growing nation brand in this year’s ranking, its brand value skyrocketing by 29 per cent to $319 billion.
“Emerging as a Southeast Asian haven for manufacturing, Vietnam defies the global trend, with its brand value up an impressive 29 per cent,” Brand Finance noted.
Vietnam, which has recorded staggeringly low COVID-19 cases and deaths, has emerged as one of the top locations within the Southeast Asian region for manufacturing and has become an increasingly attractive destination for investors – particularly from the US – that are looking to relocate their China operations following the fallout from the US-China trade war. Recent trade deals with the EU are further supporting the growth of the nation.
On the other hand, the 100 most valuable nation brands in the world have suffered monumental losses to their brand value because of the COVID-19 pandemic, amounting to $13.1 trillion.
2020 has put the nations of the world to the test – from the economic impacts of COVID-19 on nations’ GDP forecasts, inflation rates, and general economic uncertainty, to diminished long-term prospects. Brand Finance estimates that the total brand value of the top 100 nation brands dropped from $98.0 trillion in 2019 to $84.9 trillion in 2020, with almost every nation feeling a significant impact of the health crisis on their respective economies.
“The downward trend of nearly all the world’s most valuable nation brands is unsurprising, given the year we are currently experiencing. With COVID-19 contributing to the recent rise of protectionism, we may see a reversal of the economic growth brought about by globalisation. Having said that, optimism has certainly prevailed, with forecasts looking less dire than initially predicted, and with the announcement of a working vaccine beginning to be rolled out, the future is certainly looking brighter,” said David Haigh, CEO of Brand Finance.
China continues to close the gap with long-standing leader US, with the two brand values reaching $18.8 trillion and $23.7 trillion.
The 10 most valuable nation brands contracted by 14 per cent on average. Japan claimed the third position as it emerges relatively unscathed from pandemic.
Ireland is the only nation brand in the top 20 to record brand value growth, up 11 per cent to $670 billion, a testament to its resilient economy bolstered by strong exports and consumer spending.
In contrast, Argentina was the fastest falling nation brand, its brand value dropping 57 per cent, as COVID-19 cases passed the 1 million mark.
Brand Finance’s Global Soft Power Index data has been included in the Brand Strength Index (BSI) for the first time, meaning original research on global as well as domestic perceptions of nation brands is now part of Brand Finance's evaluation methodology.
A nation admired for its stable leadership, Germany is the world’s strongest nation brand with a BSI score of 84.9 out of 100.