Brand-building the key to competitiveness and integration

Brand names are one type of intellectual property (such as a label, logo, slogan, symbol or shape) that distinguish the goods of services of one business from another and are strong growth drivers in both the national and global markets.

If a brand name is accorded legal protection it becomes trademark.  More and more, experts are advocating Vietnamese enterprises focus on expanding their global reach through strong execution of a marketing strategy aimed at developing their label.

The trademark is the invisible giant asset that can be seen most clearly through higher profits in the financial statements and it should be nurtured and maintained just like any asset. 

Due attention should be paid to the development of brands

General Secretary of the Vietnam Chamber of Commerce and Industry (VCCI) Pham Thi Thu Hang,said CEOs and managers have increased their awareness about the power of branding to attract customers and enhance profits.

So far in the integration process, local businesses have concentrated more heavily on investing their funds in tangible assets and have not paid sufficient attention to nurturing the intangible value of assets.

Ms Hang also makes the strong argument that Vietnamese enterprises have not developed their name recognition in the region and the world due to inadequate research and development to differentiate their products.

Firms that pursue high robust differentiation benefit the most from trademark recognition in the eyes of consumers, Hang said.

Most importantly, Hang said, they should strive to separate their products from others and increase their returns by effective execution of a long-term business strategy to build them in parallel in the national and global marketplace.

Stephen Kreppel, an expert in nation branding from the Nation Consultancy, UK in turn said the development of Vietnamese brands in the international arena would directly translate into elevating the image of its national treasure, the Vietnamese people.

The truth of the matter is that Vietnam has historically been overly preoccupied with competing in the global market place solely on price.  Its strategy has been narrowly defined as simply to sell unprocessed commodities to foreign companies and earn a meagre profit.

While leaving the processing and manufacturing to the foreign company to add value and reap the lion’s share of the benefits Kreppel says, adding that this strategy has resulted in little, if any, notoriety in the eyes of consumers in the global market they have not developed a clear image of Vietnam or its products.

Developing trademarks should be the whole nation’s responsibility

Kreppel said the best solution for Vietnam is to develop an open market-oriented economy thus helping Vietnam export high quality products at a higher profit along with developing Vietnamese recognized labels and targeting foreign consumers.

He has also advised businesses to take more time to study the foreign markets and to obtain an in-depth thorough understanding about consumer tastes and potential markets to find an opening in the market and develop a national image.

The whole business community should be involved in a comprehensive effort to develop a national image, Kreppel concluded.

However, Hanoi Milk Joint Stock Company Management Board President Ha Quang Tuan has a slightly different take on the issue.  He said the building of national label is the responsibility of the business community, every citizen and the whole nation.

Tuan suggested the country would benefit from a better selection process to insure production is geared towards goods and services for which it has competitive advantages.

Vietnam might not be able to compete with other nations in manufacturing aircrafts, rockets and automobiles but it does have advantages in producing farm products, which have attracted the world attention, Tuan added.

Echoing Kreppel’s views, the most important thing is to study consumer demand and the foreign markets and carefully strategize on the most resourceful way to find a niche in it, he underscored.

Some popular Vietnamese goods have won consumer trust and made inroads into the global marketplace, Kreppel said. However, the importance for enterprises of having a long-term vision to invest in their trademark in the national and global marketplace cannot be overstated.