Trung Nguyen Coffee is one of a few well-known Vietnamese brand names on the international market
While many foreign companies can attach their country’s images to their brands -- for instance, electronic and auto makers benefit from the made-in-Japan label -- Viet Nam offers no such benefit yet, according to former Minister of Trade Truong Dinh Tuyen.
“Even the few Vietnamese enterprises that are known are only known because of their sales. Most Vietnamese enterprises are limited to outsourcing and assembling parts. That’s why Viet Nam does not have a well-known international brand.”
Mr. Tuyen told domestic companies to focus on innovation-creativity, quality, and ability, adding they also required long-term strategies to promote their image globally.
Dr. Le Dang Doanh, a senior economist, said the economy was growing mostly because of certain advantages Viet Nam enjoyed, like cheap but hard-working labor and cheap raw materials, and not due to “innovation”.
The University of Commerce’s Center for Brand Name (CBN) recently released data confirming this. Of 126 enterprises with major agricultural exports, only 41 have a specific long-term strategy for global branding. Of the rest, 57 lack a strategy while the other 28 do not even care about branding.
Mr. Doanh added: “Vietnamese enterprises do not cooperate with each other. They will not join hands with each other to set up efficient long-term strategies”.
Dr. Nguyen Quoc Thinh, director of CBN, said domestic enterprises should focus on developing intangible assets like brands and goodwill instead of merely competing on price.