Vietnam’s brand value went up 11 per cent

September 30, 2022 | 17:58

(0) user say

Vietnam’s national brand value has grown by 11 per cent this year, up from $388 billion to $431 billion, according to the latest report by leading brand valuation consultancy Brand Finance.

The increase in the brand value of Vietnam correlates with the nation being increasingly perceived as a secure and stable place to invest as many manufacturers look to relocate operations from elsewhere in Asia to Vietnam.

The new research from Brand Finance is not a valuation of aggregated Vietnamese commercial brands but rather a valuation of the brand of the nation of Vietnam itself. As such, Vietnam scores particularly high on agricultural ratings, social media engagement, and the nation’s response to COVID-19, with each of these factors serving as an important driver of the increased national brand valuation.

In addition to calculating brand value, Brand Finance also determines the relative strength of national brands through a balanced scorecard of metrics evaluating a brand investment, perceptions, and performance.

Vietnam has seen the third-highest brand value gain over the course of the pandemic in absolute terms – up $184 billion to $431 billion in 2022 – but the world’s fastest growth in relative terms, up 74 per cent compared to 2019.

Vietnam has gained momentum as an attractive destination for foreign investment thanks to successful fiscal and monetary policies and investments in human capital, but also amid trade disruptions from China’s lockdowns and continued tensions between Beijing and Washington.

Across the world, the values of the world’s national brands have substantially returned to their pre-pandemic levels. Nation brand valuations are based on forward-looking macroeconomic forecasts.

The total value of the world’s top 100 nation brands stands at $97.2 trillion, up 7 per cent on-year and only marginally behind the pre-pandemic value of $98.0 trillion in 2019. While the combined value of the world’s top 100 national brands has practically matched pre-pandemic levels, exactly 50 nation brands have increased in value over this period, while the other 50 remain below the valuation from before the COVID-19 crisis.

At the top of the ranking, the United States (brand value up 7 per cent to $26.5 trillion) has retained its position as the world’s most valuable national brand, maintaining the lead ahead of China (up 8 per cent to $21.5 trillion). The US and China are standout leaders in the Brand Finance Nation Brands 2022 ranking, with the combined brand value of the two equal to that of the remaining 98 nation brands in the top 100.

Logo, company name Description automatically generated

The United Kingdom is among the nation brands recording the best COVID-19 recovery, having seen the highest absolute brand value gain – up $265 billion to $4.1 trillion.

Canada has claimed the title of this year’s strongest nation brand with an overall brand strength score of 81.8 out of 100, supplanting last year’s leader Switzerland (80.7). Alongside GDP forecasts, national brand strength is an important driver of national brand value.

Brand Finance’s brand perceptions research, originally published in the Global Soft Power Index 2022, has evidenced a recovery of the reputations of the world’s largest economies over the past year, compared to the first year of the pandemic.

While in 2020, leading national brands like China, Italy, and the US were seen to have suffered significantly from the first wave of COVID-19 infections, in 2021, they were seen to have successfully rolled out vaccinations and managed the virus.

In this way, the US, France, the UK, and Japan all make a comeback to the top 10 brand strength ranking after the extraordinary decline in their international perceptions caused by the pandemic. Similarly, China enters the top 20 for the first time, claiming rank 15, while Italy and Spain return to the top 25.