Building global reputation for Vietnamese brands

Vietnam is increasingly integrating into the world economy, and to withstand global competition, it must have globally reputable businesses and brands. However, to build a globally reputable brand, Vietnamese companies must be ambitious and highly determined, and at the macroscopic level, they need active State support.

Big ideas

Made-in-Vietnam Trung Nguyen-brand coffee products are present in about 50 foreign countries, including large markets such as the US and the EU. However, there are few such products in the same position. Most kinds of Vietnamese products that are circulated on the world market still carry foreign brands.

In 2003, the Vietnam Young Business Association initiated the Vietnam Gold Star Award to honor reputable Vietnamese brands and products. Thus far 1,127 brands have won this award, most of which are typical for Vietnam and of global competitiveness. However, even the award-winning brands can hardly compete with famous global brand names.

To make Vietnamese brands globally reputable, the Vietnam Young Business Association has proposed the idea of building global reputation for the brands of businesses that have won the Vietnam Gold Star Award. This idea has been accepted by the Prime Minister. The association has established a team gathering leading brand experts, officials from the concerned ministries and departments and experienced businesspeople to work out a feasible plan to build global reputation for Vietnamese brands.

Ambition and determination

Making Vietnamese brands globally reputable is a mission that cannot be done overnight or within several years. It requires great efforts, strong determination and it takes dozens or even hundreds of years to implement.

Le Vinh Son, the general director of the Son Ha Joint Stock Company, said that among tens of thousands of domestic companies, only several dozen companies have positive reputations in the domestic market. It is far from easy for Vietnamese companies to compete with businesses whose names have become famous worldwide for a long time. In the current period of time, only a handful of Vietnamese brands can be developed to become globally reputable.

Dang Le Nguyen Vu, the general director of the Trung Nguyen Corporation, said, “A globally reputable brand must meet four conditions: 1) already being the number-one brand with national reputation in the domestic market; 2) that brand must come from the area that has the comparative advantages of the home country compared with the world; 3) the business which owns that brand must be ambitious to penetrate the global market (this is the most important thing); and 4) the brand must be supported by the Government.

The economic infrastructure in Vietnam remains weak. In terms of global competitiveness, Vietnamese businesses are inferior to globally famous companies in all aspects, from brand reputation and financial capacity to human resources and technology. In the opinion of Dang Le Nguyen Vu, Vietnamese businesses can hardly have globally reputable brands if they do not make comprehensive improvements.

He said that to make Vietnamese brands globally reputable, suitable actions must be taken based on the tight interaction between the State, consumers and businesses. This means the State must have appropriate policies to support brands that are eligible to enter the global market. To encourage consumers to buy made-in-Vietnam products, domestic businesses must ensure that their products are of high quality and have reasonable prices. They must have a strong determination to improve themselves in order to overcome the challenges of global competition.

State support wanted

In the opinion of Dang Le Nguyen Vu, to become globally reputable, domestic companies must be ambitious and have national spirit. They must be creative and capable to create breakthroughs. Apart from their own efforts, domestic companies need State support. The State must create a favorable environment for domestic companies to develop their global reputation.

Nguyen Quoc Thinh, the director of the Trademark Center of the Hanoi University of Commerce, said, “It is not easy to make a brand globally reputable and not all companies can do this. If they do not receive Government support (in accordance with international regulations), Vietnamese companies cannot become globally reputable. Big brands in the world have received governmental support for a long time. Vietnam must select eligible brands to build their global reputation.”

There are opportunities for Vietnamese companies in general and the ones that have won the Vietnam Gold Star Award in particular to become globally reputable. However, only a small number of Vietnamese companies are eligible to penetrate the global market. To be firmly positioned on the world market, domestic companies must have a strong financial capacity and be creative, and they must be active in popularizing their brands with support of the Government and relevant authorities as well as business associations.

Dr. Nguyen Quang A said, “Without creativity and renovation, businesses cannot build global reputation for their brands. Businesses must be creative in organizational activities as well as in marketing approaches. On its side, the State must create a favorable environment for businesses to bring into play their creativity and promote their renovation. Appropriate State support policies in terms of capital, tax and training must be put in place to help all eligible companies but not just several ones build up their global reputation.” – VEN

Tags: Vietnam companies, Vietnam enterprises, Vietnamese brands