Urgent need for HCMC to develop strong brands, say experts
Urgent need for HCMC to develop strong brands, say experts
Although HCMC is now home to many large enterprises, the country’s biggest economic hub is facing a shortage of strong brands, experts stated at a seminar in HCMC on December 20.
At the seminar, entitled, “Developing the brands of products and enterprises in HCMC," experts agreed that branding has become an urgent need for HCMC.
Municipal Chairman Nguyen Thanh Phong described the seminar as an opportunity for the city’s leaders to listen to experts’ proposals on branding, which has yet to be done effectively in the city, although the municipal government has boosted programs to support local firms.
“The city understands that enterprises must create and develop their brands to have strong capacity and competitiveness in the international market,” Phong added.
The city makes up 24% of the nation’s gross domestic product and accounts for 52% of the total number of enterprises.
However, among 40 valuable brands in Vietnam, those in HCMC make up a small proportion, said Phong.
Therefore, the city is in dire need of large enterprises to enhance the city’s competitiveness.
Dr. Vo Tri Thanh, director of the Institute for Brand and Competitiveness Strategy, stated that the number of HCMC’s brands listed in national branding programs remains modest.
In reality, enterprises have invested heavily to perform branding for their products in the past few years, Thanh noted.
According to Chairman of the Plato Brand Academy Nguyen Duc Son, Vietnamese enterprises can be divided into two groups: large firms with successful business performance, and startups. Despite differences in branding strategies, the two groups are both vague about brand standards and branding methods.
He explained that valuable brands are those which have been born in the mind of consumers, even if they have yet to use specific products of such brands. For example, Japanese products have been routinely accepted as being of high quality.
HCMC should determine its strengths and work out detailed plans, Thanh said.
Pham Thanh Kien, director of the HCMC Department of Industry and Trade, remarked that brands are the images of not only enterprises, but also localities and the entire country.
Therefore, the development of brands of enterprises in the city is mutually advantageous for both firms and the municipal government. Brands are indispensable for enterprises and a driving force for the city’s sustainable development, Kien added.
However, branding cannot be done in a short time. Most experts agreed that the city’s orientations are important in encouraging the development of brands.
Vietnam has made great strides in branding. In the 2003-2020 period, national branding programs have been mainly aimed at products, which is considered the simplest method.
Do Quoc Huy, marketing director at the Saigon Union of Trading Co-operatives (Saigon Co.op), said it would cooperate with the Bac Giang government to hold the Luc Ngan litchi week in HCMC next year. This is one of the effective ways to create branding.
Meanwhile, Thai Tuan Chi, chairman of Thai Tuan Fashion Group Corporation, said the local government should issue preferential policies to encourage enterprises to further invest in their business lines.
At the seminar, representatives of large enterprises in HCMC shared their experiences in building their brands, such as Saigon Co.op, Thai Tuan, Saigontourist, Vissan and Minh Phuong Lacquer, who have invested in technology and aimed at specific customers.
Besides firms’ efforts, experts agreed that the municipal government’s role is important in branding. HCMC, in particular, should have incentives for its key products.
HCMC Vice Chairman Tran Vinh Tuyen highly valued experts’ opinions and proposals at the seminar to contribute to branding products and enterprises in HCMC and Vietnam, as a whole.
All enterprises want to develop their brands in the international market. The HCMC government will be committed to accompanying and supporting enterprises in developing their brands, Tuyen said.
