Hanoi (VNA) - Vietnam has signed a variety of free trade agreements (FTAs) around the world. Partners offer preferential tariffs and market penetration for Vietnamese products. Therefore, to gain a foothold and run smoothly, businesses need to build value in a strong brand, according to the Ministry’s represenatives at the National Brand Forum held in Hanoi on April 16.
Success from brand affirmed
Le Duc Nghia, Chairman of the Board of Directors of the An Cuong Wood Company, said that the market has recovered this year, with various signs of improvement in the export of wood products. The company has won export orders until the end of November and others for domestic delivery until the end of the third quarter of 2024.
With two main markets - the US and Japan respectively accounting for 85% and 15% of export orders, the An Cuong Company is aiming to expand to Canada. In order to gain a foothold and succeed in the market, Nghia said that the company does not want to do outsourcing, so it is very active in participating in fairs abroad and arranging business delegations from the US to visit An Cuong's factory to have direct connections with orders and develop the brand.
According to him, there is good profit in a business exporting its own product, but outsourcing products is not sustainable due to costs. Specifically, the profit will range from 8-10% if a business ships its products abroad. Outsourcing reduces profit margins to 2-3%, or break even in a worst case scenario.
“To succeed, a business should focus more on marketing, and promote brand development,” said Nghia.
Meanwhile, the TH Group operates a green and circular economy with its business model.
Arghya Mandal, General Director of the TH Dairy Joint Stock Company (TH Group), shared that TH’s investment projects focus on applying high tech, science technology and management science, creating agricultural products with breakthrough output and quality, towards sustainable development, beneficial to health.
As of the end of 2023, TH Group had been honoured with the Vietnam National Brand four times in a row with the following criteria: Quality, Innovation, Pioneering Capacity. Most recently, TH has had five product groups recognised as National Brand items, including UHT fresh milk, ice cream, nut milk, purified water and juice milk.
“To truly develop their brand, businesses need to accompany the programme in promotion and communication activities, towards a common goal. This is the development and enhancement of Vietnam National Brand. This is also a way to inspire other businesses to join in," Mandal further said.
Moreover, many small and medium-sized enterprises (SMEs) in the world have succeeded in building brands with core values, contributing to building a national brand, associated with the image of quality products. Dr. Abel D. Alonso from RMIT Vietnam University said that SMEs account for 96% of the total number of businesses, employ 47% of the workforce and contribute 36% of national added value.
Core value elevated
In recent years, Vietnamese businesses have made many advances in building and developing brands, improving the competitiveness of products, attracting investment and developing foreign trade.
Deputy Minister Tan cited a report on the implementation of the Vietnam National Brand Programme 2023 by the Ministry of Industry and Trade showed that Vietnam continued to be a spotlight in the world’s brand development map, posting the fastest growth rate of 102% in the 2019-23 period.
He said that the elevation of core values is not only the acceleration of economic growth but also the building of corporate culture, building of just society and sustainable development.
Nguyen Thuong Lang, senior lecturer at the National Economic University, said to build their own brand, SMEs should select products and choose an appropriate way to ensure that their core values are affirmed in the market.
According to Lang, relevant ministries and sectors should create conditions for consumption orientation and promotional programmes, while developing national brands and outstanding products on the market.
To promote core values and contribute to increasing export value in the coming time, Hoang Minh Chien, Deputy Director of the ministry’s Trade Promotion Department, said that ministries, sectors and localities need to raise awareness of stakeholders on the role of building brands and registrating intellectual property protection of Vietnamese branded products.
Chien suggested businesses promote creativity in designing products, invest in technology reform to produce stable and sustainable quality products toward the trend of green and circular economy./.
