The ranking of Vietnamese brands has been continuously improved thanks to the government’s efforts to promote economic growth, with a significant contribution of the Vietnam Value Programme. The successes amid the programme have become a solid foundation and promise to increase competitiveness of Vietnamese businesses on the global stage.
|Vietnam asserting its brand identity on the global stage |
Most valuable brands
In Vietnam, more corporations and businesses are becoming aware of the importance of branding as the key to increase product and corporate value. Among them, Secoin JSC is a typical example as it exports its decorative bricks to more than 60 markets around the world.
Dinh Hong Ky, chairman of Secoin said, “With the support of the programme, we have gradually built, developed, and promoted our brand and professionalism, contributing to improve our competitiveness and reaffirm our position in domestic and foreign markets.”
Enterprises with recognised as Vietnam Value – such as TH Group, Vietnam Airlines, BRG Group, Truong Hai Auto Corporation (THACO), Hoa Phat Group, Viettel, and Sunhouse – have over the years not only positioned their names in the country but also beyond Vietnam’s borders.
For example, TH Group’s organic fresh milk and other products have been widely exported to many markets in the world; while THACO has gradually brought Vietnamese cars to the world, even to demanding markets such as the US and Japan.
According to the evaluation of Steering Committee 35 under the Ministry of Industry and Trade (MoIT), after nearly 17 years the Vietnam Value Programme has achieved many positive results and created a reputation for local businesses among regulators as well as domestic and foreign consumers.
The enhancement of competitiveness of local businesses is based on many factors, but the expansion of production scale, labour force, and revenue increases over the years have played an important part.
According to the reports of 124 enterprises with products recognised as Vietnam Value in the seventh selection period, the total revenue of those businesses in 2019 amounted to over $60.8 billion, with the total export revenue accounting for more than $5.9 billion and a contribution to the state budget of over $8.7 billion, as well as created jobs for more than 470,000 workers.
The ranking of Vietnam’s national brands has continuously improved over the past four years, thanks to the government’s efforts to reform the business and investment environment, improve import and export, and support the branding of products and businesses.
Through products honoured as Vietnam Value, the government has focused on building and developing Vietnamese brands associated with positive values, effective implementation based on unity, and a set strategy of importing and exporting goods and services.
Therefore, within the national economy, export turnover targets of products and services reaching the standards of the programme are also set higher than the national average growth rate. In the opposite direction, enterprises have also shown efforts to help Vietnam’s national brands gradually gain a foothold in the international playing field.
In 2020 due to the heavy influence of the pandemic, on average the 10 countries with top brands in the world suffered, and so have regional countries like Indonesia, Malaysia, and the Philippines.
From a global perspective, Vietnam’s national brand has the fastest growth rate in the world, bringing Vietnam to 33rd on the list of the 100 most valuable national brands, according to leading brand value firm Brand Finance.
As per the Global Soft Power Index Report 2021 by Brand Finance, Vietnam is the only country in ASEAN to be upgraded compared to 2020 in the global soft power ranking. The position of Vietnam has also improved by 2.5 points, increasing by three ranks, from 50 out of 60 in 2020 to 47 out of 105 ranked nations in 2021.
Samir Dixit, managing director of Brand Finance Asia-Pacific commented, “Vietnam is considered a bright spot thanks to a remarkable increase in national brand values and economic and social results achieved in the past year.”
Establishing a new position
Vietnam has been striving to enhance the position of local brands in the international market through proactively participating in regional and global free trade agreements (FTA). Ngo Chung Khanh, deputy director of the MoIT’s Multilateral Trade Policy Department, noticed that the signing and implementation of new generation FTAs have put Vietnam among the leading countries in the process of economic integration in the Asia-Pacific region.
According to Khanh, Vietnam will carve out a special position as these FTAs enhance the country’s position in ASEAN and internationally, creating opportunities for businesses to expand their export markets and participate more deeply in global production and supply chains.
Participation in FTAs opens new opportunities but there are also many unpredictable factors. Vu Ba Phu, general director of the Vietnam Trade Promotion Agency and head of the Secretariat of the Vietnam Value Programme, said that to make good use of these opportunities, it is necessary to recognise the limitations of national brand development for products as well as corporates.
“Enterprises need efforts, determination, and creativity to quickly build and strongly develop their national brands. Besides this, businesses need to build a strategic direction to promote the strength of national brands methodically, especially in the digital age. They also need to prioritise investment in scientific and technological development,” Phu added.