Experts spoke at a seminar titled Brand in Relation to Strategies of Enterprise Development in HCM City on February 26. (Source: VNA)HCM City (VNS/VNA) - Vietnamese enterprises, especially small- andmedium-sized ones, need greater awareness of the importance of brand building, aseminar heard in Ho Chi Minh City on February 26.
Assoc Prof Dr Mai Ha, Chairman of the Vietnam Intellectual Property Association(VIPA), told the Brand in Relation to Strategies of Enterprise Developmentseminar: “Brand is among intangible assets of enterprises and a core value increating enterprises’ value.”
However, Vietnamese enterprises had not paid much attention to the value ofbrands, he added.
According to Luong Minh Huan, Deputy Director of the Vietnam Chamber ofCommerce and Industry’s Enterprises Development Institute, brand building isnot only a key factor in facilitating exports and helping businesses competebut also establishes the reputation and brand of a country.
Vietnam is among the largest exporters of agricultural products, but not manyforeign consumers know they are using products from Vietnam.
That is because the products are exported without brand names on the packaging.
Ha said: “We are worried that with growing international integration,enterprises face fierce competition. They will also face brand disputes, and ifthis happens, they will surely lose.”
To succeed, local enterprises, especially exporters, must focus on buildingtheir own brands right while starting their business, he added.
Peter Willimott of the World Intellectual Property Organisation said unliketangible assets brands appreciate with time if enterprises make properinvestment in them.
Johnathan Ooi, deputy general director of PwC Vietnam Limited’s valuationdivision, said: “Brands are one of the most important and valuable assets thatbusinesses need to nurture and protect.
“A good brand builds customers’ trust in the products and services of acompany. Thus, it will increase its revenue and profits.” In addition, a goodbrand would attract more talent, one of the most important factors for acompany’s success, and build suppliers’ trust, and this enhances a company’scompetitiveness in the market, he said.
In an interview with the media, Seth Hay, chief representative of theInternational Trademark Association (INTA), said, “Vietnamese companies need topay attention to the three Ps: be prepared, be proactive, and be positive aboutbrand development.
“Being prepared means they need to register their trademarks in Vietnam as wellas outside Vietnam. Being proactive means they need to set aside the money tomake sure they protect the brand and prevent others from using it. Beingpositive means they need to go out and value their brands and think that abrand is a revenue generator, a brand can be licensed and can be used for loansand other assets.”
INTA’s research shows a strong relationship between economic growth andtrademark-intensive industries.
In developed countries trademark-intensive industries could contribute over 50 percentto GDP, while in developing countries it could be 25 percent.
A company’s bosses “need to understand the importance of brands and payattention to brands and invest in brands,” Hay added.
The seminar also discussed global regulatory trends undermining the future ofbrands, called the “slippery slope”.
It refers to the trend of applying restrictions first to tobacco and then toother consumer products such as alcohol and foods akin to a domino effect.
Measures such as taxation, pictorial health warnings, restrictions orprohibitions on advertising and promotion, and regulations on the productitself are increasingly being proposed and introduced on other products such asalcohol, soft drinks and foods.
One of its outcomes is plain packaging, which has major ramifications for otherconsumer goods because it could be extended to any product under increasedregulatory scrutiny.
Paul Middleton, corporate development director at Japan Tobacco International,said: “Plain packaging has serious economic consequences: it distorts marketdynamics, specifically damaging within-price-segment competition and ultimatelygenerates down-trading to the value end of the market. It also increasesillicit trade leading to significant reduction in tax collected bygovernments.”
The seminar was organised by VCCI, the VIPA, IPA-HCM City, INTA and theinspectorate of the Ministry of Science and Technology. - VNS/VNA
VNA
