Vietnam’s advertisement sector will surely be able to earn annual revenue of US$2-3 billion if there are more open and transparent related policies, a top advertising expert said.
Advertising is a young and developing industry in Vietnam, with reported earnings of VND5 trillion (US$316.5 million) last year, which has made significant contributions to the nation’s fast economic growth, but administrative procedures are limiting its operation, said Tran Nguyet Dan, Vice Chairman and General Secretary of Vietnam Advertisement Association.
“There are too many emerging licenses in localities, creating several difficulties for us to run operations,” Dan said.
The country is now home to more than 3,000 advertising enterprises and over 80 radio and television stations, and some 500 newspapers and publishers engaged in the service.
However, up to 85 per cent of the ad-companies are now run by foreigners, Dan said.
Analysts say that Vietnamese advertising firms have some shortcomings in capability, one of which is in training, leading to a lack of good ideas.
Advertising spending had grown by more than 200 per cent in the last five years, with TV ad spending growing 40 per cent, and print media 20 per cent.
According to a survey recently released by market research company Taylor Nelson Sofres (TNS) Vietnam, total expenditure for advertisement in the country was US$2.4 per head, the lowest level among surveyed countries.
Recently, the Ministry of Finance (MoF) has pledged to remove the restriction of 10 per cent on advertising expenses that has been fixed for several years, in an effort to create a fair playing field for local businesses.
In mid-last month, Dan’s association held the first Advertising Vision Festival, in order to provide a place to the display of visions of advertising companies, professional designers and copywriters.
The organizing board introduced the 52 best ‘Viet advertisement ideas’ to be televised on VTV and VTC.
Vietnam & World Economy
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