Invisible force: Brand as soft power for enterprises

City to honor 50 distinguished enterprises

Deputy Director Le Nguyen Duy Oanh of the Ho Chi Minh City Center for Supporting Industry Development stated that, as part of the celebrations commemorating the 50th anniversary of the Liberation of the South and National Reunification, the Ho Chi Minh City Party Committee and People's Committee have initiated a series of voting programs. These programs aim to recognize 50 exemplary works in literature and art, 50 outstanding construction projects, 50 distinguished individuals, and 50 significant events.

The program to select 50 exemplary enterprises with key brands and products of Ho Chi Minh City has been entrusted to the Department of Industry and Trade by city leaders, said Deputy Director Le Nguyen Duy Oanh. She continued that the Department is responsible for overseeing and collaborating with relevant departments, agencies, media outlets, and units in its execution.

This initiative aims to honor enterprises that have played a crucial role in the city's development, while simultaneously encouraging them to embrace innovation, digital transformation, and competitiveness in the global market. The ultimate objective is to foster sustainable growth that contributes to economic prosperity while safeguarding social welfare and environmental sustainability.

The Ho Chi Minh City Department of Industry and Trade has established a set of criteria for selecting leading enterprises within the city. Eligible candidates must be prominent companies with significant brands and products that have contributed to the city's growth and development.

To qualify, enterprises should have been in operation for a minimum of 10 years in the industrial and service sectors, or 5 years in the agricultural sector, and must receive nominations from relevant industry associations, departments, and sectors. Companies are required to meet the program's standards, achieving at least 70 percent of the total possible score of 500 points.

Additionally, they must secure a minimum of 50 percent in each of the key evaluation categories, which include business performance, communication, and environmental, social, and governance (ESG) considerations, and must be recognized by the program and favored by consumers.

The awards ceremony to honor these exemplary enterprises is scheduled for April 2025.

Brand is invaluable asset of every enterprise

According to Chairman Nguyen Anh Duc of the Vietnam Retailers Association and General Director of the Ho Chi Minh City Union of Trade Cooperatives, brand is the soft power and the invaluable asset of every enterprise.

A robust brand, as he suggests, can significantly enhance a company's competitiveness, leading to greater opportunities for growth in the domestic market and the ability to tap into international potential. However, the process of establishing a Vietnamese brand extends beyond just companies focusing on product quality and innovative designs. It also necessitates the involvement of relevant agencies and organizations in the establishment, certification, and recognition of the brand for these enterprises.

This serves as a solid foundation for supporting enterprises in establishing strong brands, unique identities, and prominent market positions on a global scale.

A survey undertaken by the Institute of Policy Management and Development Strategy in Vietnam indicates that the rate of brand building and development among Vietnamese enterprises currently falls below 30 percent.

Furthermore, the survey reveals a notable disparity in this regard between manufacturing and trading enterprises. Of particular concern is the finding that approximately 20 percent of enterprises, despite investing in brand building, restrict their brand registration to the domestic market, thereby neglecting the crucial aspect of international brand expansion. This limited approach poses a significant impediment to the competitiveness and sustainable development of Vietnamese enterprises within the global market.

Most notably, the majority of Vietnamese goods exported to markets under the Vietnam-European Union Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP) still carry foreign brands. As a result, the added value earned is not commensurate, and businesses are vulnerable when the market fluctuates.

Sales Director Linda Tran of Sunrise Ins Company, provided an example. For the same rice product, if exported to the European market with a brand, the price of 1kg of branded rice can reach VND70,000-VND150,000 a kg. On the contrary, if exporting raw rice, it will only be around VND15,000 a kg.

The influence of a brand can significantly enhance its impact when it successfully drives changes in consumer habits and behaviors towards more sustainable lifestyles and consumption patterns. A comprehensive transformation in consumer behavior is essential for the effective implementation of sustainable development strategies, which will subsequently yield both broad and deep economic benefits.

Consequently, it is crucial to bolster the internal production capabilities and competitiveness of Vietnamese enterprises and local products in response to the influx of imported goods. This underscores the importance of supporting Vietnamese businesses in their brand-building efforts.