Government, Businesses Joining to Work on Brand Development

At the seminar, participants concluded that in order to dominate the domestic and export markets and create value-added products, Vietnam enterprises need to develop a number of big brands with high competitiveness. Investment in brand development, however, requires a close cooperation of enterprises and the overall approach to meet the extremely diverse and increasing needs of markets. Besides, it requires appropriate policies from the State to create conditions for businesses to advertise their products to consumers nationally and internationally.

 

Mr Vo Hung Dung, Director of VCCI-Can Tho Branch cum General Secretary of the Vietnam Catfish Association (VN Pangasius), said Vietnam has been exporting catfish since 2002 and as of 2012, Vietnam exported this product to over 150 countries and territories with a turnover of US$1.8 billion. However, there is still no national brand for this item, which is mainly exported as frozen fillets. Not only catfish, but many other major agricultural products are in this situation, mainly exported under the form of raw or semi-processed products.

 

He also stated that consumer products with famous brand names can achieve profit 15-20 percent higher than other products. The brand development will promote research activities (product innovation), the service sector. The brand is formed and developed in the long run, it is the result of a series of activities with clear strategies, but more importantly, it requires enterprises to produce items with high quality, to understand customers, have proper marketing strategies and a large-scale distribution system. To promote Vietnam’s rice brand, Mr Dung recommended defining a national strategy for production and export. Moreover, Vietnam needs to improve cultivation methods, delivery capacity and build customer loyalty in order to build a positive image of Vietnam’s rice. In addition, market segments must be clearly defined and products created for each, and more importantly, enterprise competitiveness must be improved.

 

Mr Stephen Kreppel, an expert in national branding at the National Consultancy (UK), said that it is very hard for an enterprise to develop the brand and have a strong foothold in the market without the support of the Government and associations. But to build a brand, enterprises need to produce high-quality products and research customers’ tastes and needs, because consumers change their tastes as well as needs day by day. If enterprises conduct good research, they can deliver more appropriate products, creating advantageous conditions for brand development.

 

Regarding the role of the Government, experts from National Consultancy Company said that the government plays an important role because only the government is able to plan long-term strategies and has resources to properly implement it right in the first phase. "However, the role of government is setting up the foundation and supporting, not controlling", Stephen Kreppel stressed. According to experts of the National Consultancy Company, the Government has seven roles in supporting businesses in promote brands.

 

One, the Government ensures that the supply chain and value chain work effectively: to ensure mutual benefits of each link in the chain.

 

Two, the Government takes advantages of the donor community to help promote capacity, for example, at all stages of the value chain.

 

Three, the Government takes advantages of the donor community to identify and implement standards as required by the international market.

 

Four, the Government creates an environment in which firms can cooperate to establish the export councils.

 

Five, the government could provide tax incentives and subsidies to encourage all entrepreneurs and businesses to consider marketing as an important activity of the enterprise.

 

Six, the Government removes all barriers for businesses to facilitate them in controlling their business activities. The Government can provide tax incentives and subsidies to encourage all entrepreneurs, businesses to consider marketing as an important operation of the business.

 

Seven, the Government should be responsible for investments which are needed to launch the first steps in a real market-oriented economy. That is the question mark over Investment (the ratio of expected Return on investment), not spending; they are investment activities to keep profits in Vietnam and to build an international reputation of Vietnam.

 

Also, at the conference, group of international consultants in the National Consultancy - UK introduced some fundamental methods for Vietnamese businesses, especially exporters, to successful invest in brand development, raise product value, to be ready to seize opportunities brought from economic integration.