Vietnam emerges as bright spot in national brand development

Vietnam is recognised as a bright spot in the national brand development landscape and has the fastest-growing national brand value worldwide over the past five years, with an increase of 102% from 2019 to 2023.

Alex Haigh, Managing Director of Brand Finance Asia Pacific region, stated: "The strong growth in the value of Vietnam's brand in recent years is thanks to high economic growth, improved brand recognition, and a stable investment and business environment, particularly thanks to the government's efforts to reduce interest rates in recent times”.

The reputation and position of the economy have positively grown.

Commenting on Vietnam's economic recovery, maritimefairtrade.org (Singapore) recently published an article quoting the latest semi-annual economic report from the World Bank (WB), which forecasts Vietnam's economy to grow at 5.5% in 2024 and gradually rise to 6% in 2025.

After experiencing a recession in 2023, Vietnam's economy showed signs of recovery in early 2024. Exports are recovering, and domestic consumption and private investment are gradually increasing.

Actual exports are expected to rise by 3.5% in 2024, reflecting the gradual improvement in global demand.

In addition, changes in the real estate sector are expected to occur by the end of 2024 and into 2025, which will boost domestic demand as investors and consumers regain confidence. Actual total investment and private consumption are projected to increase by 5.5% and 5%, respectively, in 2024.

The article quotes Sebastian Eckardt, Practice Manager for Macroeconomics, Trade and Investment in the East Asia and Pacific Region, who states that investments in public infrastructure projects are not only aimed at stimulating the economy in the short term.

Efforts to strengthen public investment management will also address critical infrastructure shortages in energy, transport, and logistics, essential for Vietnam's long-term economic growth.

In the latest analysis of Vietnam's great opportunities in attracting shifting capital, Forbes.com (the US) states that over the past few decades, Vietnam has opened its doors to large corporations. Vietnam's credibility and position will continue to be affirmed with even greater business opportunities under the Trump 2.0 administration.

According to Forbes.com, Vietnam has advantages over other regional competitors, such as India. Vietnam has the ability and has quickly built a new business-friendly policy framework.

Vietnam also has a favourable geographic location, with 3 out of the 50 busiest ports in the world and borders China, making trade and logistics between the two countries easier.

Vietnam is one of the few countries in the region with a Free Trade Agreement (FTA) with the European Union (EU). The country is also urgently upgrading essential infrastructure to support major projects, which is welcomed by foreign investors.

Vinamilk, a Vietnamese joint-stock company, is a high-value brand in the international market. (Photo: TRONG HIEU)

Recently, Trump has repeatedly stated that he wants to promote US manufacturing and make goods produced abroad more expensive when imported into the US, including a warning of a 60% tariff on goods made in China and a 20% tariff on goods produced in other countries.

Professor Tran Ngoc Anh, a management professor at Indiana University (USA), stated that one of the top ways to help Vietnam turn these stricter trade regulations into an "advantage" is by targeting multinational corporations, as these companies bring their supplier ecosystems and focus on high-value products.

He said: "Vietnam should prioritise companies that will attract other companies to Vietnam. If Apple comes to Vietnam, many other suppliers will want to be close to Apple—these companies will help Vietnam transition into higher-tech industries. Instead of focusing on footwear and textiles, Vietnam should focus on biotechnology, artificial intelligence (AI), and semiconductors".

Southeast Asia, particularly Vietnam, is in a very favourable position to attract the global shift in manufacturing. In this context, Vietnam is increasingly asserting itself as a reliable economic and trade partner on the international stage.

The value and trust come from the business community.

According to Brand Finance’s evaluation, telecommunications, technology, banking, and food and beverages are the industries making significant contributions to the development of Vietnam's national brand. Vietnamese companies in these sectors are making the most of the opportunities from the market.

When a country’s brand value increases, all goods and services from that country also benefit, especially tourism and exports. The more familiar and reputable Vietnam’s brand becomes, the more it will help attract foreign direct investment (FDI) into the country.

Hong Sun, Chairman of the Korean Business Association in Vietnam, said that many large Korean corporations have chosen Vietnam as their investment base, such as Samsung, with 50-60% of smartphones produced in Vietnam, carrying the “Made in Vietnam” brand.

According to Adam Sitkoff, Executive Director of the American Chamber of Commerce in Vietnam, when a country’s brand grows, it is a significant effort. Vietnam's leaders have visited many countries globally to promote the image of a Vietnam with a skilled workforce, deeply engaged in global value chains, and a domestic market full of potential.

Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises (HANOISME) Mac Quoc Anh emphasised that the strength of a national brand is the sum of many factors. Among them, the business community plays a crucial role, with many large Vietnamese brands on the international stage and efforts to bring quality Vietnamese goods and products to various countries.

"Vietnamese businesses are working tirelessly to assert themselves, affirming the country's brand in competition and cooperation with international partners".