Solar energy systems installed across Vinamilk’s agricultural estates

Spillover effects from brand value

2015 was the first year ranked by Brand Finance, a global brand valuation agency. Vietnam's national brand ranked 47th out of 100 countries. By 2024, Vietnam has advanced 15 places to 32nd position in this ranking. The number of companies surveyed by Brand Finance climbed from 50 in the 2015-2022 period to 100 in 2023.

By nature, a brand has resounding and synergizing effects. The brand value increase of 100 leading Vietnamese firms is not only meaningful to those 100 firms but also greatly helps other Vietnamese companies on the path to capture international customers. For example, when talking about a brand from Japan, consumers tend to think about good and trustworthy projects without even knowing that brand before. Similarly, the increase in the value of Vietnam Value is a positive sign that Vietnamese brands are increasingly being appreciated and more sympathized by consumers. This is a favorable foundation for other businesses to start their steps towards the vast world outside.

More and more Vietnamese firms are aware that their market is not limited to only 100 million people in this country but can be billions of people outside Vietnam's borders. Perhaps, we have what they need and want. Businesses and the government must make those consumers know about us, trust and use Vietnamese products and services. In fact, we have been witnessing businesses of different scales and fields trying many ways to reach international customers.

Recently, Brand Finance ranked Viettel Group second in the world by brand strength in the telecommunications industry in 2024. Last year, Vinamilk was ranked Top 6 most valuable dairy brands globally and Top 5 most sustainable dairy brands globally. These two firms have focused on promoting investment and tapping foreign markets in recent years.

The official listing of VFS stock of the vehicle manufacturer Vinfast on the NASDAQ Stock Exchange from August 2023 is another example of brand globalization of a Vietnamese company. The long-term effect will take time and effort from businesses themselves, the government and even the support of consumers but this event makes an extremely positive contribution to the Vietnam Value. Furthermore, domestic businesses will also be greatly encouraged and inspired. The first and most important thing in international branding is we must dare to think that we can do it, and then talk about how to do it. National spirit and unity are also very important in national branding.

Elevating brands, based on quality, innovation and sustainability

Vietnamese businesses awarded the Vietnam Value in the past 20 years have affirmed their important role in inspiring and creating spillover effects in the domestic business community. They show that Vietnam Value is a guarantee of a business's commitment to consumers, evidenced by more and more businesses interested in and participating in the Vietnam Value. Vietnam Value winners increased 30 companies in 2008 to 172 companies in 2022. The Vietnam Value qualifying process in 2024 is underway with many companies expected to join.

Structurally, the trophy is not only awarded to large, long-standing traditional firms but also to relatively new, medium-sized businesses. As small and medium-sized enterprises (SMEs) account for about 97% of total businesses in Vietnam today, the program's ripple effect on SMEs is essential and meaningful.

Looking ahead, the value of a brand depends first and foremost on the quality of its products and services. Vietnamese products and services still have much room for further improvement. Hopefully, businesses will have the right investment, continuous innovation and long-term commitment to what they want to sell on the market. To do so, they need to listen to customers, understand the market and constantly look for ways to change for better. Not only chasing after contemporary trends, but Vietnamese businesses should also find new directions to create new trends and lead the market, such as green products, sustainable development, transparent and fair governance or tell their own stories with Vietnamese identity to international friends.

Most of businesses are aware of the role and significance of the Vietnam Value but they still face hardships in implementation. The national brand has a close relationship with brands of businesses and industries in a country. Therefore, amid Vietnam's commitments to a green and sustainable economy, we have a lot of work to do. The government can offer practical benefits and incentives to businesses if they meet the requirements of a green and sustainable economy. Vietnam can also consider “green” requirements when approving export products. Green standards for each industry also need to be set. In the long term, sanctions also need to be set and strictly implemented against non-compliant cases.

We also need to have a consistent and strong message and continuously communicate to each citizen to shape the green nation. All in all, we need the coordination and effort of authorities, agencies, localities, businesses and people to make Vietnam recognized as a green and sustainable brand in the eyes of international friends.

Dr. Dang Thao Quyen, RMIT University Vietnam