Economic Sector

Last updated: Thursday, February 21, 2019


Joint Efforts for Branding Development

Posted: Monday, April 23, 2018

Branding a commodity receives high attention, not only of manufacturers and service providers but also of local and national authorities.

Branding development
Mr Do Kim Lang, Deputy Director of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade, said, branding in Vietnam has been paid due attention to since 2013 and this is an inevitable tendency under integration pressures which require cooperation between sectors and businesses.
Dr Nguyen Quoc Thinh from the University of Commerce said, co-branding is carried out by a group of companies (e.g. branding a trade village, a business association or a product bearing a limited geographical indication) or by a certain industry. This co-brand is shared among associated members.

In Vietnam, popular collective brands include Bat Trang Ceramic, Van Phuc Silk and Dong Ky Woodwork (trade villages); Luc Ngan Litchi, Lo Ren Vinh Kim Star Apple and Dai Hoang Banana (geographical indications or associated with the origin); Vietnam Tea and Chu Se Pepper (association or branch brand).

In the strict importing markets, many businesses do not have the opportunity to have their brands placed on product labels. These products are only labelled with “Made in Vietnam”. Therefore, if only one business does something wrong, it will seriously affect the whole industry. Joining together for development and brand management is particularly important.

"As a co-owner, a brand is shared by independent members. Therefore, no individual entity has the right to arbitrate the collective brand (transfer, change, split, merger, etc.), said Mr Thinh.

Co-branding is often associated with joining individual brands (to form a brand partnership). Each member unit has its own brand and they are always looking for approaches to develop their brands together with co-branding development. Co-branding is essentially creating and building the foundation for brand development of each member unit.

Sectoral branding for tea, rubber and handicraft
Sectoral branding in Vietnam has achieved initial success with three main export products: tea, rubber and handicraft.

Vietnamese tea producers are globally known to have medium-quality tea and it is a big challenge for any single producer and exporter as well as the whole tea industry to change this image. Ms Luc Thi Thu Huong from the University of Commerce shared her experience that if a company exports crude products, use big packages to pack products and lack product brands, it should focus on corporate brand in the capacity of a professional partner with sufficient knowledge of international market and ensure its reliability and supply capabilities.

As for handicrafts, Vietnam can focus on two values for positioning: distinction and sustainability. Uniqueness lies in the use of materials, product designs, distinctive cultural values and traditional knowledge in production processes (the presence of handicraft villages and clusters developed with tourism experience, flexibility and creativity in combining technology and traditional techniques). “Sustainability covers social, ecological, economic and cultural sustainability,” said Huong.

In the Vietnamese rubber industry, branding was deployed by the Vietnam Rubber Association in 2013. In early 2015, the National Office of Intellectual Property issued a certificate on the ownership of Vietnam Rubber brand to the Vietnam Rubber Association. Vietnam Rubber is a certified, collectively owned brand, which is owned by the Vietnam Rubber Association which consists of many members. Based on rubber market researches and on Vietnam’s rubber export development situations, supply constraints and product quality, Vietnam’s rubber branding is proposed featuring Top Quality or Absolutely Pure.

Mr Do Kim Lang, within the scope of the Vietnam Value - a national branding programme, industry branding is positioned as a key content for many years together with business supports for individual branding. The Vietnam Value Programme picks qualified brands to be granted a symbol served as a certified brand. The image of the Vietnam Value can only really shine when we have strong product brands and business brands that are competitive enough to compete with foreign rivals.

Huong Ly

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