Many Top Export Brands Lost: Why?

The export branding has been very popular in other countries in the world. For example, Columbia built collective coffee branding in the 1920s. Columbia coffee has become one of the top five coffee brands in US consumer survey. Thanks to its popular brand, Columbian coffee price is always the world leader.

 

In Vietnam, industry branding has gradually drawn attention of industry insiders. Some brand names have been registered for protection like green-skin Ben Tre pomelo, Phu Quoc pepper, Thanh Ha lychee, Binh Thuan dragon fruit and Tien Giang agricultural products. Industry branding is not only limited to export boost but also includes protection of brand image of Vietnamese goods. Therefore, there is an urgent need to establish brand names and register in import markets. The lateness may lead to the loss of brand names like Phu Quoc fish sauce and other famous brand names.

 

An industry needs a lot of criteria for collective branding. Firstly, the industry must have high export value like rice, coffee, tea and cashew nuts. They are major staples sectors representative of Vietnam’s agricultural products on global markets. If Vietnam is successful in building brand names for these sectors, it will have the experience with other ones.

 

Recently, some provinces and cities have built brand names for many sectors at the same time, leading to the weakening of resources for ultimate results. Indeed, this approach increases difficulties in brand development.

 

While localities try to register and develop collective brands, they are not very good at managing and utilising brand names. Trademarks and geographical indications are almost localised and regionalised and they difficultly represent industry brands, especially when local/regional interests sometimes conflict. Most of brand names and geographical indications potential for industry brand development are not properly cared for registered protection in foreign countries. Industry branding also lacks capable implementers and marketing strategies.

 

For exporters, they need supports from industry associations as well as agencies in charge of certification, anti-counterfeiting and intellectual property protection to create synergy and make better investment for branding. In Japan, they have a representative agency responsible for preventing fake electronics goods manufactured and sold in foreign markets. If the industry branding has the involvement of enterprises, industry associations coupled with direct supports of State management agencies, its success prospect is high.

 

Exporters tend to rely on supports of State agencies in developing collective and industry brands. Mr Tran Le Hong, Director of the Information Centre under the National Office of Intellectual Property (NOIP), the Ministry of Science and Technology, said, “It is completely wrong to think that industry branding development is the task of State agencies. It is the responsibility of businesses, industry associations, and localities. The State only can organise trade promotion activities such as the ongoing National Brand Programme in support of businesses, industry associations business or business representative organisations to develop brands. For their part, businesses must care about product quality and branding strategies and they must understand that no State agencies can do this for them. Businesses and industry associations must change their awareness from the start to successfully build their own brands and should not rely on State management agencies.

 

Not only but State agencies also face numerous difficulties in developing brands, especially in foreign countries, when they lack staff and budget. For enterprises, effort, creativity and linkage are important factors to make successful brands. Linkage is very important because branding budget is a hard task for one business but it is not a heavy burden for a group of enterprises.

 

Vietnamese enterprises have encountered difficulties in litigation in foreign countries and they mainly suffer damages. When a business or an industry association wants to develop new markets, one of the important conditions is to ensure their product brand names in those markets. They must be always aware that if a new product comes out, the first step is to register its brand name. Brand registration costs in foreign countries are much lower than those for brand protection in case of disputes and trademark infringement litigations. If they face overseas lawsuits, attorney costs and costs of dispute settlement are very high, even beyond their financial capacity while risks of loses remain.