A brand’s value lies in its product quality, service and uniqueness: ADB Expert
WVR - Against the backdrop of deepening international economic integration, where high competitiveness prevails, businesses are compelled to strategize the construction, development, and promotion of their brands. In his discussion with the World and Vietnam Report, Mr. Nguyen Ba Hung, Chief Economist at Asia Development Bank in Vietnam, highlighted the importance of establishing corporate brands, as well as delivered some recommendations.
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| Mr. Nguyen Ba Hung, chief economist at Asia Development Bank in Vietnam. (Photo: Thuong Gia Online) |
Businesses don’t invest in brand-building to just to sell at old prices
According to Mr. Nguyen Ba Hung, first and foremost, it's essential to recognize that branding is a commercial equation. To have a brand, businesses must invest in building it. The value of a brand doesn't solely stem from the investment in its cultivation; it also arises from the quality of goods, services, not just being good but having a uniqueness.
“A brand must be closely linked to its quality of goods, services, and must stand out among similar products to truly possess value and commercial significance. No business invests in branding to continue selling goods or services at old prices”, he said.
From a business standpoint, the expert believes that, branding should be a business's responsibility. Businesses must see the benefits in brand-building and must have sufficient resources to do so.
Initially, businesses can engage in outsourcing for foreign companies, and when their production capacity and competitiveness improve, that's when businesses can begin focusing on building their brand.
He gave an example of An Phuoc Garment Embroidery Shoes Ltd., Co. This company brought the famous French fashion brand Pierre Cardin to the Vietnamese market and then they built their own high-end fashion brand for Vietnamese people.
“At first, An Phuoc specialized in manufacturing for Pierre Cardin, then later, they established their own brand. We can’t quantify the quality behind that story, but clearly, compared to other domestic fashion products, An Phuoc’s are superior in terms of quality and price. That's why they're investing more in brand-building."
Building national brand is intertwined with product and corporate branding
Vietnam is considered a bright spot in the landscape of building and development of national brand. According to Brand Finance, Vietnam’s national brand increased by 11%, from $388 billion USD in 2021 to $431 billion USD in 2022. Additionally, the brand value of Vietnamese enterprises has also significantly increased.
Mr Nguyen Ba Hung suggests that, national brand buidling is similar to business branding, so, one must consider the perspective of cost-benefit.
“Typically, when discussing Vietnam's national brand, many primarily think of the tourism sector. However, regarding product promotion, the current outreach remains moderate since the publicity of national brand stops at the popularity level—just to increase awareness”, Mr. Hung highlighted.
Therefore, establishing a national brand must be tied to product and corporate branding. When a business possesses products with a reputable brand, the business's brand is also elevated. Similarly, when a country houses many businesses with strong brands, it serves as a crucial foundation to uplift the country's brand, and Vietnam's national brand is no exception.
Conversely, when the national brand gains prominence in the international market, it provides assurance of credibility and quality for Vietnamese businesses, enabling them to confidently compete alongside foreign enterprises, thereby enhancing their competitive capacity.
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