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| Mr. Nguyen Ba Hung, Chief Economist in Vietnam, Asian Development Bank (ADB). (Source: Thuong Gia Online) |
Businesses do not spend money on branding to sell at old prices.
According to ADB chief economist Nguyen Ba Hung, first of all, it is necessary to identify branding as a commercial issue because to have a brand, businesses need to invest in building it. The value of a brand does not only come from investment in building it but also from the quality of goods and services, which must not only be good but also have a difference.
“A brand must be closely linked to the quality of goods and services and be different from similar products for that brand to truly have value and commercial significance. No business would spend money on branding to continue selling the same goods and services at the same price,” said expert Nguyen Ba Hung.
Analyzing from the business perspective, expert Nguyen Ba Hung said that branding must be the business's job. Businesses must see the benefits of branding and must have enough resources to do so.
Enterprises can initially accept outsourcing for foreign companies. When production capacity improves and products become competitive, that is when enterprises can start focusing on branding.
Mr. Hung also cited the success story of An Phuoc in bringing the famous French fashion brand Pierre Cardin to Vietnam and developing its own high-end Vietnamese fashion brand: “Initially, An Phuoc specialized in processing for Pierre Cardin, then they created their own brand. It is difficult for us to measure the quality behind that story, but clearly An Phuoc's products are superior and have a price advantage compared to other domestic brands. That is why they spend more money on branding.”
Building national brand associated with product brand, business brand
Vietnam is considered a bright spot in the picture of building and developing national brands. According to Brand Finance, Vietnam's national brand is valued at an increase of 11%, from 388 billion USD in 2021 to 431 billion USD in 2022. In addition, the brand value of Vietnamese enterprises has also increased strongly.
Expert Nguyen Ba Hung commented that to build a national brand, like building a business brand, it is necessary to consider it from a cost-benefit perspective.
“Normally, when talking about Vietnam's national brand, many people will think more about the tourism industry, but through products, the current spread is still at a moderate level because promoting the national brand still only stops at the popularity level - so that people hear about you more", Mr. Hung said.
Therefore, building a national brand must be associated with product brands and business brands. When a business has a product with a prestigious brand, the brand of that business will also be enhanced, and when a country has many businesses with strong brands, it will be an important foundation to enhance the brand of a country and the national brand of Vietnam is no exception.
On the contrary, when the national brand is raised in the international market, it creates a guarantee of prestige and quality for Vietnamese enterprises, confidently reaching out with foreign enterprises, thereby improving the competitiveness of enterprises.
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