The world's leading brand valuation consultancy firm conducts valuations based on a number of criteria, including the ability to generate added value and profits, the brand’s influence on clients’ selection of products and services, and the market cap.
According to the ranking, the brand value of Vinamilk accounts for 23% of the leading Vietnamese dairy group’s value, which currently reaches US$5.001 billion.
In addition, at the price of VND107,000 a share, Vinamilk ranks No. 2 for capitalisation on Vietnam’s stock market, after the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank, at over VND126 trillion).
The next positions on the chart belongs to military-run telecom group Viettel (US$580 million), Vingroup real estate firm’s Vinhomes (US$343 million), mobile network operator MobiFone (US$306 million) and PetroVietnam Gas (US$288 million).
Combined, the 50 brands are valued at a total of about US$5.5 billion.
The banking system contributes eight brands to the list but their brand value only accounts for a modest rate of the companies’ value, at an average of 5-12%.
According to Brand Finance, brand value lies in the intangible assets of a company. In Vietnam, this element contributes only 38% of the total value of a company, while the average ratio worldwide is 53%.
The brand value of Vietnamese enterprises is still low, said the brand valuation consultancy firm, adding that it will be more difficult for domestic firms to compete with global brands in keeping market shares.
However, experts said that the announcement of valuation of the leading brands in Vietnam will offer a new perspective on the value and essence of brand development for businesses. Accordingly, awareness of brand importance will increase as the value of intangible assets of a brand name can be expressed in a specific amount. This is a step forward to raise Vietnam’s awareness and brand management capacity to the average level in the region and internationally.
In the context of Vietnam joining the Trans-Pacific Partnership (TPP), branding will be a ‘tool’ to help domestic businesses compete with foreign companies as tariff barriers are removed.
Every year, Brand Finance conducts independent valuations for about 57,000 different brands worldwide. It is the first time the company has conducted an assessment of Vietnam’s 50 top brands with shares listed on its stock exchange.
