Vietnamese brand name is ranked A + by Brand Finance, which is a group of countries with strong brands.
In such a fiercely competitive world today, Intangible factors such as brand value are increasingly valued by investors, because it reflects the reputation of the business in the marketplace. But not only at the company level, the brand name of a country is also an important factor, helping to convey the message of the quality of the goods and services that that country produces, and indirectly. help domestic businesses compete more effectively. So how much is a Vietnamese brand worth?
According to a recent report by the research firm Brand Finance, the two words “Vietnam” are worth about 203 billion USD, up strongly by 43% compared to the results measured in 2016, and at the same time Top 5 countries witnessed the most impressive speed of branding in 2017.
Vietnamese brand is also ranked A +, which is in the group of countries with strong brands, just behind the group of countries with “excellent” and “very strong” brands. An improved national brand reflects a more attractive investment climate in Vietnam, which is evidenced in fact by the influx of foreign direct investment or the skyrocketing number of international tourists in the past two years.
“Vietnam is a country with many skilled workers. In fact, foreign companies are racing to build production facilities in Vietnam with the expectation of an attractive domestic market as well as relatively low labor costs, ”said Natasha Ansell, CEO of Citi Vietnam, said.
The formula for calculating the national brand value is quite complicated. Brand Finance surveyed investors’ reality to build the Brand Strength Index (BSI), which applies the Royalty Rate associated with using the size of the economy over 5 years. come to calculate the income stream. These income streams will be discounted at an appropriate rate to calculate the net present value and sum to the final value.
In general, this year’s rankings partly reflect the shift in the competitive position of the two Eurasian continents. While China continued to hold the No. 2 position with the value of 10,209 billion USD, Japan maintained the 4th place with the value of 3.439 billion USD, while some other Asian countries such as Korea, Thailand, Philippines, and Indonesia. Vietnam also recorded a strong improvement in brand value. In contrast, European countries such as Germany, Netherlands, Belgium, Switzerland, Sweden and Austria have seen a decrease in brand value or just a slight increase.
The most impressive story in the 2017 ranking can be said about China. This national brand value increased the largest in absolute numbers (more than 3,100 billion USD). Currently, Chinese businesses account for 50 out of the 500 most powerful brand name enterprises in the world (Global 500), in which 4 leading global areas are banking (with ICBC brand). alcohol (Moutai), insurance (PingAn) and real estate (Dailian Wanda).
In the future, it is possible that China’s position will increase significantly as a leading conglomerate like Alibaba becomes increasingly known around the world.
Such achievements could help Chinese President Xi Jinping increase his prestige. Remember in 2012, Mr. Xi said that China must try to end the mark of being just a place for sourcing and supplying components to Western countries, but must build its own, world-class materials. gender. China has completely designed a program, including the establishment of the National Brand Development Council to realize Xi Jinping’s China dream.
Obviously, a country with strong brands will benefit businesses. Therefore, quite a few countries are trying to find ways to increase the value of this intangible asset, typically China, Japan, or Korea. In Southeast Asia, Singapore can be seen as a leading country in the national branding strategy. Currently, the island nation is the only country in the world with a BSI index greater than 90, according to a survey and calculation by Brand Finance.
Without abundant resources, Singapore is forced to implement its strategy of investing in people through The Skills Future program, in which every Singaporean aged 25 and over will receive S $ 500 to participate. into career training programs. In 2016, more than 400,000 people participated in this program. The Skills Future is expected to equip Singaporean citizens with the necessary skills to strengthen their competitive advantage in career in the coming years.
Let’s go back to the story of Vietnam. Although the national brand has improved very well, in terms of absolute value, Vietnam is only ranked 6th in Southeast Asia, behind Indonesia (845 billion USD), Malaysia (489 billion USD). Thailand ($ 483 billion), the Philippines ($ 466 billion) and Singapore ($ 464 billion). Closing the distance with these opponents will not be an easy task.
It is optimistic to see this weakness, the Government has combined with consulting firms such as Brand Finance to design a national branding program called Vietnam Value, initially receiving public attention. business co-business and domestic and foreign investors. “With the Vietnam Value program, Vietnam is assessed to have certain progress in branding and development”, said Mr. Samir Dixit, Director of the Asia-Pacific region of Brand Finance.
* Source: Investment bridge