Taking Advantages to Develop Regional Brands

In reality, each locality has many typical conditions and advantages to create specific products but their products have not gained a strong foothold in the market. Although they have many advantages in agricultural and aquatic products, Vietnam’s key agricultural exports are not well-known on the international market. Worse, famous products carrying collective brands and geographical indication certificates are easily counterfeited and imitated. These cause huge losses and disadvantages of Vietnamese products on international market.

Mr Tran Tuan Anh, Deputy Minister of Industry and Trade and Vice President for the National Branding Council, said, the development of national brands, regional brands, and corporate brands lacks sufficient care and legal basis. In the context of deeper international integration, this branding is an important job for authorities and businesses to enhance competitiveness and protect the domestic market.

Speaking of the role of national and regional brand development, Dr Nguyen Thi Tuyet Mai, professor at the National Economic University, said national and regional brand development is very important to attract investment capital and popularise the image of Vietnam. She cited a recent survey by a US university on their feelings about Vietnam. On a 7-point scoresheet, the attitude of liking for Vietnam and Vietnamese people is average, or 4 points, and the liking of Vietnamese products and services is below average, or 3 points. “It is necessary to take regional advantages to create unique products, improve competitiveness and increase customer confidence," Ms Mai said.

Sharing the same viewpoint, Mr Do Thang Hai, Director of the Vietnam Trade Promotion Agency (Vietrade) and Secretary General of the Secretariat of the Vietnam National Brand Programme asserted that regional branding is perceived as a part of national branding strategy. Regional branding will help localities and businesses to develop the economy, accelerate the commercialisation of local products, and thereby improve living standards of local people. Linking adjoining localities also creates the strength for a greater region and helps attract foreign investment and develop trade in goods and tourism. All these factors not only support the development for not only a locality or a region but help build national brand image. This in turn makes products enter domestic and foreign markets more easily.

Also at the forum, specialists also discussed ways to develop Vietnamese maritime brand as a tool for national image building and marketing for the marine economic sectors. Mr Pham Quang My, Deputy Director of Sea and Islands Department under the Ministry of Natural Resources and Environment, said the marine brand is tied to maritime economic development and has to be seen as a member of the family of national brands. Vietnam needs to build and develop marine brand on the basis of combining exploitation with protection of marine environment and marine resources. Developing marine brands must base on available marine products and marine services.

Mr Hai said due to economic slowdown, investment funds for regional branding programmes fail to meet actual needs. Regional branding is the essence in the long-term trade promotion programme. Apart from State budgets, localities and industries need to have counterpart capital or seek from other sources, even international aids.

Specialists also noted that apart from developing regional brands for economic development, it is also very important to protect local product brands in the domestic market and in the international market, thus defending intangible assets that localities are striving to build.

Over the past years, the trademark development in Vietnam has attracted much attention from the public and mass media. This has helped raise awareness of managers, enterprises and people about the important role of trademark building to their business development.

Domestic firms need the support of the State, scientists and relevant units to have more products widely consumed in the global market, thus contributing to improving the country’s competitiveness in the international arena.

Mr Pham Quang My, Deputy Director of the Vietnam Sea and Islands Department (Ministry of Natural Resources and Environment)

Vietnam has a coastline of over 3,260 km, and 28 coastal cities and provinces. The country’s sea area is one million sq. km with more than 3,000 islands of all size, with Hoang Sa and Truong Sa being offshore archipelagoes. Vietnam boasts huge potential for maritime economic development.

Maritime brand development does not mean only how to exploit and use reasonably, effectively and sustainably but also how to link industries to build a macro brand. Hence, maritime branding needs marine development policies as well as cooperation, coordination and involvement of ministries, branches, localities, businesses and people.

In addition, the Government needs to have special mechanisms and policies to encourage domestic and foreign investors to invest in marine economy.

However, regional branding is still relatively new in Vietnam and the approach is thus not clear. Currently, there are a very few documents about regional branding. Regional branding is only referred to branch of collective branding based on the use of geographic name or geographical indication. This definition is not right to a certain extent. Regional branding needs more subjective and sufficient definition. Many localities have started building regional brands but they lack strategies and long-term development orientations to enhance regional competitiveness and sustainability.