Despite brand building being an important factor for Vietnamese products to compete with foreign ones, local firms and management agencies have failed to pay close attention to the development of brands amid the rapid and intensive international integration process.

According to Brand Finance, the leading consulting organisation on national
brand valuation, the Vietnamese national brand in 2019 is valued
at US$247 billion, an increase of US$12 billion compared to 2018.

Vietnamese national brand also ranked the 42nd worldwide, largely due to the Government's efforts aimed at improving the local investment climate, providing support in the development of product brand and the implementation of a national brand scheme.

Despite these positive changes, Vietnamese brands still remain relatively unknown to domestic and international consumers. According to a survey conducted with more than 500 enterprises, only 20% of respondents stated that they made investments in developing brands and have not made efforts to register brands in foreign markets.

Le Tat Chien, deputy director of Research, Training and Support Center, Consultant, National Office of Intellectual Property of Vietnam, said several businesses have not been focusing on building brands, leading to many of their products having little profile to consumers in the world market.

Concurring with this viewpoint, Nguyen Huu Nghia, deputy head of the Party Central Committee’s Economic Commission, stated that some businesses do not regard the development of brands as key in order to introduce their products to consumers, with many paying little attention to advertising activities.

According to Mac Quoc Anh, vice chairman of the Hanoi Association of Small and Medium Enterprises, in terms of the nation’s business structure, 90% of firms can be considered small and medium enterprises, the majority of whom have encountered challenges to build trademarks due to limited financial potential.

To overcome these shortcomings, businesses have called for management agencies to give them greater support to devise effective mechanisms and policies aimed at protecting domestic goods, whilst also fine-tuning the legal system in an effort to create a fair business environment for enterprises.

Vu Ba Phu, director of the Vietnam Trade Promotion Agency (Vietrade), said that in recent years, the Government has established a National Brand Program, which has helped enterprises build brands and develop the national brand into an attractive image for both importers and consumers.

Tran Thi Phuong Lan, deputy director in charge of the Hanoi Department of Industry and Trade, pointed out that Hanoi has deployed a scheme aimed at supporting firms to develop brands for many years, this has mainly involved holding training courses that focus on product branding.

According to economists, the Ministry of Industry and Trade should strive to take full advantage of the network of overseas counselors and trade offices in an effort to promote local brands while mobilising resources from the Vietnamese community globally to assist in promoting these brands in their host countries.