Reporter: Up to now, the number of Vietnamese enterprises with products recognized as national brands has increased nearly sixfold, and businesses are paying more attention to brand building. Could you please share the role of VCCI in raising awareness of the significance and necessity of building, developing, and protecting the brands of enterprises?

VCCI Vice Chairman Hoang Quang Phong: It can be said that after nearly 40 years of economic reform, Vietnamese businesses have not only grown in numbers but also in quality, as demonstrated by their efforts to build their image and brand. Many businesses have realized the importance of branding and have invested appropriately, most clearly reflected in their participation in the Vietnam National Brand Program.

Statistics show that after 20 years of implementation, the number of businesses participating in the Vietnam National Brand Program has increased significantly. Specifically, the number of enterprises winning the Vietnam National Brand Award has increased nearly sixfold, from 30 enterprises in 2008 to 172 enterprises in 2022. 

Enterprises Awarded the National Brand in 2022

Among the companies awarded the Vietnam National Brand are notable brands such as Viettel, Vinamilk, TH, MB, Vietcombank, Vietinbank, BIDV, Hòa Phát, Vietnam Airlines, Bitis, PNJ, BRG, Nutrifood, and Masan. The development of these corporate brands has contributed to increasing the value of the Vietnam National Brand. While the value of the Vietnam National Brand was estimated at $247 billion USD in 2019, by 2023, it had reached $498.13 billion USD, showing continuous double-digit growth in brand value percentage.

This demonstrates the sound direction and policies of the Party and the State in supporting business development in general and brand building in particular. Additionally, as a national organization representing the business community, entrepreneurs, business associations, and employers, VCCI has consistently made efforts to implement activities that support the business community and entrepreneurs in building and developing brands.

In addition to activities that help enhance competitiveness, contributing to improving the image and brand value of businesses, VCCI has also effectively organized various recognition, award, and honor programs for entrepreneurs and businesses through prestigious awards such as "Outstanding Vietnamese Entrepreneur," "Outstanding Vietnamese Female Entrepreneur" - Golden Rose Cup, "Enterprises for Workers," the Sustainable Business Ranking Program, and more for distinguished businesses and entrepreneurs.

 Honoring Ceremony for Outstanding Vietnamese Entrepreneurs 2022

VCCI has also actively promoted the "Vietnamese Goods Conquering Vietnamese Consumers" movement, contributing to the positive image of Vietnamese product brands among consumers. In addition, VCCI has collaborated with the World Intellectual Property Organization (WIPO), the International Trademark Association (INTA), the Intellectual Property Office of Vietnam under the Ministry of Science and Technology, and the Vietnam Intellectual Property Association to organize various conferences and seminars on brand building and protection. These efforts aim to raise awareness and provide solutions for building and protecting brands for Vietnamese businesses in both domestic and international markets.

Minister of Information and Communications Nguyen Manh Hung and VCCI Chairman Pham Tan Cong signed a cooperation agreement to support the promotion of investment and trade for "Make in Vietnam" digital technology products.

VCCI also has a dedicated unit to provide consulting services for brand building and protection for businesses, namely VCCI-IP Intellectual Property Co., Ltd. These activities aim to fulfill the objectives set for 2045, where a portion of Vietnamese businesses will have global brands, leading some supply chains and global value chains, as outlined in the Politburo's Resolution No. 41-NQ/TW on building and promoting the role of the Vietnamese business community in the new era.

Reporter: In your opinion, does the fact that Vietnamese businesses have national brand product certifications act as a springboard for businesses to expand supply markets, reach the world, and elevate the reputation of Vietnamese goods?

VCCI Vice Chairman Hoang Quang Phong: We clearly understand the importance of branding in today's world. Nowadays, consumers primarily rely on brands. A company's brand is a valuable intangible asset for the business. The fame of a brand itself guarantees a company's success.

A strong brand brings many benefits to businesses, such as easier and wider market access, and it creates opportunities to penetrate and dominate the market for strong brands. Products with famous brands can be sold at higher prices compared to similar products with unfamiliar brands.

Furthermore, a strong brand helps sell more products (thanks to the influence of word-of-mouth and consumer experience). A well-known brand not only gives the business advantages in sales and service provision but also creates conditions and acts as a guarantee to attract investment and enhance sales relationships. When a business has a famous brand, investors have more confidence in investing in the company and its stocks. This creates a favorable business environment, helping to lower production costs and increase the competitiveness of the products, thereby elevating the business's brand.

Vietnamese businesses are following the same laws as companies worldwide. Beyond the competition in product quality, branding is becoming increasingly important in the context of deep international integration. As a result, many Vietnamese businesses have invested heavily in brand building to gradually catch up with the global trend of investing in intangible value within the enterprise.

Vietnamese businesses are following the same trajectory as global companies. In addition to competition in product quality, branding is becoming increasingly important in the context of deep international integration. Therefore, many Vietnamese companies have heavily invested in building their brands to gradually catch up with the global trend of investing in the intangible value of businesses.

In our country, the "National Brand Program" has been approved by the government to build and promote the image of Vietnam through goods and services associated with the values of "Quality – Innovation, Creativity – Pioneering Capability." This program also aims to create credibility and enhance the competitiveness of Vietnamese businesses in the international market.

The government is currently improving policies to support businesses in building and developing their brands, especially in establishing a foothold in the global market. This not only rapidly expands trade and investment relationships but also enables Vietnamese corporations to participate in international bidding for large-scale projects that many of our economic groups are now capable of handling.

This is one of the important solutions that helps domestic businesses take advantage of the opportunities arising from Vietnam’s deep integration through the 16 Free Trade Agreements (FTAs) that have been signed and implemented, including new-generation FTAs such as the CPTPP and EVFTA.

According to Brand Finance, the Top 50 fastest-growing corporate brands in Vietnam saw the highest value growth rate of 36%. Among the companies with products recognized as Vietnam National Brands, many have expanded to the regional and global markets, such as Viettel, Vinamilk, and Vietnam Airlines. This is highly significant, reflecting the contribution of businesses with national brand products in their pioneering role, leading the development of the national brand, even during times when the economy faces major difficulties and challenges.

Reporter: Could you share what limitations and difficulties businesses currently face in the process of building their brands?

VCCI Vice Chairman Hoang Quang Phong: Vietnam is becoming increasingly integrated into the regional and global economy. This integration process has brought numerous opportunities for exporting goods, but it also leads to more intense competition, not only in international markets but also within the domestic market. In this context of deep integration and fierce competition, brand building is a key factor for businesses to compete equally with both domestic and foreign companies.

Building a brand is essential because it is not only a passport that facilitates a company’s export activities, but it also contributes to the reputation and branding of the entire nation. However, branding remains a weakness for Vietnamese businesses. The number of companies that have successfully built strong brands is still small, mainly limited to large corporations, while the majority of small and medium-sized enterprises (SMEs) have not yet been able to establish brands of their own.

In reality, many businesses in Vietnam still do not pay attention to this issue, especially small and medium-sized enterprises (SMEs). Many companies hold the belief that brand building requires significant resources and is only suitable for large businesses.

Because of this mindset, many SMEs find themselves at a disadvantage, particularly in the increasingly fierce competitive environment. This has resulted in a situation where many customers turn away from domestic products and gravitate towards foreign-branded products, even when there is little difference in terms of quality, appearance, or price.

This highlights the need for, alongside awareness-raising activities on the importance of brand building, programs that support and guide businesses—especially SMEs—in the process of building and developing their brands.

In the field of exports, branding plays an important role in enhancing the competitive advantage of businesses in foreign markets. However, the reality is that many Vietnamese businesses with export products suffer significant losses due to a lack of legal knowledge and an inadequate focus on building and protecting their own brands.

An example of this is the agricultural export sector. Although Vietnam consistently ranks among the top in the world for exporting rice, coffee, and pepper, Vietnamese-branded agricultural products remain modest in the global market.

Some businesses only focus on registering their brands domestically and not in foreign markets. There have been many cases where well-known and highly sought-after Vietnamese products such as Trung Nguyen coffee, Vinamit dried jackfruit, and Bitis footwear have had their brands stolen in certain foreign markets due to insufficient attention to trademark registration and intellectual property protection. This has caused significant losses in terms of market expansion and competition with imported goods.

Reporter: In your opinion, what should businesses do to build their brands, and what should VCCI do to encourage businesses to focus more on developing their own brands?

VCCI Vice Chairman Hoang Quang Phong: For businesses, profit is an important goal. However, pursuing profit in business does not mean that businesses should ignore all standards, values, principles of integrity, and the quality of life of the community. On the contrary, only when businesses respect the ethical values of the community and adhere to societal standards, thereby building their own brand and reputation, can their business truly achieve effectiveness.

Building a business brand must involve establishing business ethics as a foundational value, an inseparable part of business activities. For businesses to develop sustainably, business ethics must be thoroughly applied in all relationships between the business and its partners, customers, and consumers.

Many examples show that when businesses focus solely on profit while neglecting other factors, their business encounters problems, their brand is seriously affected, and it can even lead to market disruption and bankruptcy. Therefore, building a business brand should involve establishing business ethics as a foundational value, an integral part of business operations. For businesses to develop sustainably, business ethics must be effectively applied in all relationships with partners, customers, and consumers.

VCCI Vice Chairman Hoang Quang Phong

As a national organization representing the business community and entrepreneurs, VCCI will continue to promote the development and practice of enhancing business ethics and business culture, aligned with the requirements of a developed, civilized, and modern nation. This will contribute to building national brands of international stature.

Additionally, VCCI has conducted various activities to raise awareness among businesses about the importance of building, protecting, and developing their brands. VCCI is also actively collaborating with relevant parties to support businesses in product traceability, intellectual property protection, and brand building for products across many localities in the country.

Reporter: Thank you!