Developing a strong brand contributes to increased export revenue

Mr. Hoang Minh Chien

Vietnam is viewed as a standout in the landscape of building and developing a national brand. Could you provide more details on these assessments?

With a valuation of $498 billion in 2023, Vietnam's national brand is ranked 33rd among the top 121 strong national brands globally by Brand Finance, a leading brand valuation consultancy. The national brand of Vietnam has experienced a growth rate of 102% from 2019 to 2023. This outcome demonstrates that the value of Vietnam's national brand has established its increasing prestige and position on the international stage.

With such a strong start and impressive growth, what are the subsequent steps to enhance the competitiveness of Vietnam's national brand?

The Ministry of Industry and Trade has been tasked by the government to lead, in coordination with other ministries, local governments, organizations, and enterprises, the implementation of the Vietnam National Brand Program. The aim is to build strong product brands and corporate brands for Vietnam. This initiative will help build Vietnam's image as a country known for high-quality goods and services, contributing to the development of foreign trade and enhancing national competitiveness.

To achieve this goal, the first step is to enhance the awareness among society, businesses, and all citizens about the importance and role of building and developing brands. Vietnam is globally recognized for exporting many products that are ranked first or second in terms of value. However, these export products are not yet associated with a brand story and are mostly raw or minimally processed products. Therefore, when exported, Vietnamese products often bear the brand names of other countries.

The second set of solutions supports Vietnamese enterprises in building and managing strong product brands. When a strong brand is established, it signifies an increase in export value. Statistics show that exports from the domestic economic sector still account for a low proportion of the total export revenue; the foreign-invested sector mainly contributes to the export share. By developing strong brands, the value of products is expected to contribute to increasing the export revenue share of domestic enterprises in total export revenue. Moreover, there is a need to enhance support for registration, brand protection, and promotional activities for export products meeting the criteria.

In your view, what factors should enterprises focus on to build and develop brands?

The theme of the Vietnam National Brand Program 2024 is “Elevating Core Values.” The core values of the national brand program include three main groups: Quality – Innovation – Pioneering. First is product quality, which is a critical determinant of a product's brand value. With innovation, there is a need to harness creativity in product design to meet market demands; invest in technological innovation to produce consistently high-quality, stable, and sustainable products. Additionally, a strong brand must be pioneering. Being stronger than other brands in the same industry sector is what defines a pioneering brand. Pioneering reflects the reputation of the brand’s leaders, owners, products, financial potential, investments, and leadership.

Integrating these three core values will culminate in a strong brand. Vietnam has deeply integrated into the global economy with its participation in numerous free trade agreements. Our products have considerable advantages in terms of tariff preferences and market access. Therefore, to penetrate, establish a foothold, and develop successfully in international markets, enterprises must robustly build their brands.

Thank you, sir!