In the upcoming new lunar year, Vietnam’s government and business community are breaching the barriers that last year left, supported by the national brand recognition through the Vietnam Value Programme, which paves the way for businesses to assert their position in domestic and international markets.
|TH Group is the ideal example of a strong Vietnamese brand
Participating in the eighth national brand selection of the Vietnam Value Programme in 2022, TH Group aims to continue to maintain its position as the leading manufacturer of clean, fresh milk in Vietnam, with products that meet international standards.
Ngo Minh Hai, chairman of the Board of Directors of TH Group, said this recognition not only helps TH reaffirm its brand value with domestic consumers but also helps the group to reach more recognition in the international arena.
A strong national brand is a harmonious combination of factors like uses technology, innovation, creativity, and sustainable development. In Vietnam, more and more businesses are focusing on promoting and managing their brands as a way towards sustainable development. However, meeting the requirements of the Vietnam Value Programme remains a big challenge because of the rigorous standards set by it.
The Vietnam Value Programme will continue to focus on building and developing the country’s brand value by an average of 20 per cent per year in the next decade. Over 1,000 products have achieved recognition already, with the number of enterprises recognised increasing by 10 per cent each year.
In 2022, the announcement ceremony for selected products recognised as national brands is expected to be held in the fourth quarter, at which businesses that have pursued and met the programme’s criteria for quality, innovation, and pioneering capacity will be honoured for their accomplishments. The set of criteria is researched and built by experts based on the brand valuation method of InterBrand, a well-known American brand consultancy, and similar criteria of the US Malcolm Baldrige National Quality Award.
For the criterion of pioneering competence, enterprises must demonstrate their vision and core values, and be suitable for included factors such as customers, characteristics of business lines, and a complete business strategy that is consistent with the vision and core values.
Businesses also need to have a clear brand vision, consistent with their goals, product positioning strategies, and promises. Along with that come strategies and actions to protect the brand through intellectual property registrations and patents.
The set of criteria also provides assessments related to credit and financial ratings, such as product sales, the ratio of liabilities and total assets and equity, profit after tax and revenues, and other factors.
As a companion to the Vietnam Value Programme and an independent financial evaluation unit, KPMG stated that, based on the audited financial statements of businesses, its experts have assessed the financial capacity standards of participating companies. During the selection, KPMG also supports experts to attend the actual appraisal teams at the enterprise. At the same time, the auditing firm coordinates with the appraisal team to visit production and business facilities and offer accurate, honest, and objective assessments of the situation of enterprises participating in the selection.
Dr. Nguyen Huu Cung from the Hanoi University of Industry said, “Maintaining a solid macroeconomic foundation and controlling inflation are the main factors that make up Vietnam’s brand value. The competitiveness of enterprises has been significantly enhanced after their products were recognised as national brands, as reflected in the expansion of production scale, labour force, and production capacity.
The 124 enterprises whose products have been recognised in 2020 had their total revenues in 2019 reaching over $60.9 billion, cashing in over $5.9 billion in export value and contributing around $8.7 billion to the state budget, as well as providing 471,000 jobs.
Vietnam maintained 33rd position among the top 100 brand values in the world, according to a 2021 report by London-based consulting firm Brand Finance. Vietnam’s brand value has increased by 21.6 per cent, from $319 billion in 2020 to $388 billion in 2021.
In 2019, Vietnam’s national brand was valued at $247 billion, ranked 42nd. In 2020, Vietnam emerged as Southeast Asia’s leading production base, with the largest increase in national brand value in the world.