Domestic brands soar with Vietnam Value Programme
Domestic brands soar with Vietnam Value Programme
With the ever-increasing participation and recognition of local companies in the Vietnam Value Programme, the country is building its national brands and is ready to take the world by storm. Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade, summarises the most significant achievements of the programme and outlines its effects on the nation’s position in global markets.
Vu Ba Phu, director of the Trade Promotion Agency under the Ministry of Industry and Trade
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Just a few days after the Vietnam Value Programme published its results at the end of 2020, many were surprised by the announcement of London-based Brand Finance – the world’s leading independent brand valuation and strategy consultancy – stating that Vietnam rose nine places to the 33rd position in the top 100 valuable brands in the world.
Many said that this achievement was the result of the government’s efforts to reform the business and investment environment and improve import-export performance, which both supported businesses and brands as well as contributed to positive GDP growth.
While in the early 2000s, the Vietnamese brands did not appear in such rankings, by 2020, contrary to the global downtrend due to the pandemic, the national brand value of Vietnam increased by 29 per cent compared to 2019, to $319 billion, according to Brand Finance.
This rapid increase in its global ranking is the result of the continuous development of Vietnamese brands which has contributed to a strong increase in the value of the top 50 brands in the country to nearly $10 billion.
These figures represent the tireless efforts of entrepreneurs and enterprises, the promotion efforts of the Vietnam Value Programme, and the favourable policies of the government.
The biennial Vietnam Value Programme aims to improve Vietnam’s image as a reputable country with diversified high-quality goods and services. After 17 years, the number of enterprises and brands recognised as national brands has continuously increased, from 30 in 2008 to 124 enterprises in 2020, thus reaffirming the strong improvement in the quality of Vietnamese goods and services.
Recognised enterprises have proven their position in the domestic and international markets, despite many difficulties. The 124 enterprises chosen in 2020 all have impressive business results, with their total combined revenue in 2019 amounting to VND1.43 quadrillion ($62.17 billion) and a contribution to the national export turnover of about VND137 trillion ($5.96 billion).
Social awareness
Amid the global health crisis, national brands have not only been actively seeking solutions to solve their difficulties but also demonstrating their role within society. Along with their financial results, corporate social responsibility activities are expressed more clearly than ever before, with these enterprises showing great responsibility to the community and society.
Despite the heavy impact of the pandemic, these companies have shown their resilience, perseverance, and efforts in restructuring their operations, while preparing the foundation for recovery after the pandemic.
According to the organisers of the programme, more than 60 per cent of recognised enterprises implemented meaningful and practical activities, sometimes with donations amounting to hundreds of billions of VND. For instance, despite being among the hardest-hit enterprises during the crisis, Vietnam Airlines – which was also recognised as one of the national brands – has made important contributions to the fight against the pandemic by operating repatriation flights and securing cargo transports, among many other activities.
Another example is DOJI JSC, which donated VND4 billion ($174,000) to the Hospital for Tropical Diseases and the Institute of Hygiene and Epidemiology to repel COVID-19. DOJI also donated more than 100,000 masks to customers nationwide for free to prevent the spread of the virus and contributed another VND2 billion ($87,000) in cash to its locality.
Similarly, Viglacera JSC immediately delivered sanitary wares to public places and deployed a series of activities to inspire people to live a healthy life and commit to the community. The company has been offering high-quality domestic products and thus contributed to reaffirm Vietnamese brands among locals.
Lastly, local textile and garment producer Garment 10 JSC faced many difficulties as its clients in the European Union, the United States, and South Korea halted many orders during the last year. Nevertheless, the company prioritised finding sturdy solutions to retain its workers and applied urgent measures for its more than 12,000 employees. At the same time, the company supported the community by organising sewing events and distributing more than 100,000 masks free, especially in areas with acute infection hotspots.
With each passing edition, the Vietnam Value Programme is providing a broader platform for enterprises and products to thrive
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Fostering development
Through recognising companies and their products as national brands, the government has shown its focus on building and developing positive values to effectively embrace unity and a strong priority for import and export of goods and services.
Meanwhile, businesses have also shown their efforts to help Vietnam’s national prestige to gain a foothold in the international playground. As such, Brand Finance’s valuation of Vietnamese brands is a memorable milestone for the entire nation, especially amid the pandemic, the risk of inflation, and global economic instability.
These results also contributed to creating a driving force for strong institutional reforms that enabled a business and investment environment with international standards to help Vietnam become better positioned globally and fortify its image as an attractive destination for investment.
For every participating business, the government’s efforts like the Vietnam Value Programme are of great significance for their production and business activities, especially for those who focus on export and expansion into foreign markets.
Vietnam’s national brands are lifted in their recognition not just as a guarantee for their high service and goods quality in the international arena but also to facilitate investment attraction and the establishment of partnerships.
With every year that the programme and its brands increase their value and recognition, the position of Vietnamese enterprises and products as a whole will be enhanced in the international market.
Enterprises can then take advantage of good signals from foreign investors, as well as the positive assessment of economic organisations and other global brands, to serve as a beacon to improve the country’s reputation in the international market, which will create a favourable environment for businesses and contribute to reducing costs and improving the competitiveness.
To further promote the development of national brands and continue to enhance their position in the global market, in the next 10 years, the Vietnam Value Programme will focus on building and developing Vietnamese brands associated with positive values to effectively foster unity and a synchronised import-export strategy for goods and services.
