Vietnamese companies should focus on branding to ensure competitiveness
According to the Brand in Relation to Strategies of Enterprise Development seminar, which was hosted in Ho Chi Minh City, Vietnamese businesses need to build their brand awareness in order to drive its competitiveness. This is because higher brand awareness enables the company to establish their reputation and brand, allowing them not only to compete on a global level but also export easier.
For instance, despite Vietnam being one of the world’s largest agricultural product exporters, most of their products are exported without any brand. In turn, the lack of brand awareness caused many foreign customers to not know where the products originated from. And with higher international integration, this results in local companies to face stiff competition and brand disputes in the international market. Thus, chairman of the Việt Nam Intellectual Property Association (VIPA) Assoc Prof Dr Mai Hà suggests Vietnam enterprises develop their brand strategy and strengthen their branding to overcome this problem.
Why is branding important?
One reason why branding is critical for businesses, especially for small- and medium-sized enterprises, is because the value of brands appreciates over time as long as the company properly invests and manages it. In fact, good branding causes higher trust in the company’s product and service, revenue, and profits. Additionally, according to deputy general director of PwC Vietnam Limited’s valuation division Johnathan Ooi, improved brand awareness will attract talent, thus further driving the company's competitiveness.
Having the right brand strategy to develop one’s branding is also important for a country’s economic growth. Based on the International Trademark Association (INTA)’s research, a strong correlation was found between trademark-intensive industries and economic growth. While trademark-intensive industries contributed more than 50% of developed countries’ GDP, the same industries only contributed 25% of developing countries’ GDP.
3Ps: the brand strategy for Vietnamese companies
To improve competitiveness and branding, Chief Representative of the International Trademark Association Seth Hay proposed three Ps (proactiveness, preparedness, and positivity) that Vietnamese businesses must pay attention to.
- Proactiveness: setting aside enough money to protect the company’s brand
- Preparedness: Vietnamese businesses must register all trademarks both locally and overseas
- Positivity: believing that their brand has value, thus can generate revenue through licensing and can be used as an asset