Vietnamese companies can elevate their brands by focusing on core values

Vietnamese companies can elevate their brands by focusing on core values

How important is branding through value-adding for Vietnamese firms' international success? RMIT University researchers shared some insights as part of Vietnam National Branding Week 2024.

Branding through value addition is a strategic approach where brands enhance their perceived value by associating themselves with positive core values that resonate with their target audience. This can be achieved through various means, such as product/service quality, corporate social responsibility, customer experience, to name a few.

RMIT Senior Lecturer in International Business Dr Abel D. Alonso, a keynote speaker at the Vietnam National Branding Forum held on 16 April 2024, highlighted that while larger Vietnamese companies are becoming more strategic in integrating and elevating their core values in branding activities, there is room for improvement among small and medium-sized enterprises (SMEs).

According to an OECD report from 2021, SMEs represent 96% of the total stock of companies, employ 47% of the labour force, and account for 36% of national value added in Vietnam.

“The importance of SMEs in the Vietnamese economy cannot be undermined. There is huge potential to be unlocked when it comes to building strong national brands from this group of businesses,” Dr Alonso said.

RMIT Senior Lecturer Dr Abel D. Alonso delivered a keynote speech at the Vietnam National Branding Forum 2024. (Photo: RMIT) RMIT Senior Lecturer Dr Abel D. Alonso delivered a keynote speech at the Vietnam National Branding Forum 2024. (Photo: RMIT)

Vietnam is filled with independent producers of food, fashion, handicraft, and niche products. Its rich natural and cultural heritage also gives rise to many SMEs in tourism and hospitality. According to Dr Alonso, these are just some of the industries that could benefit from value-adding branding efforts.

By providing specific case study examples, he said that branding can be done through continuous storytelling and social media exposure, emphasising the usefulness of the products and their sentimental value. Maintaining a strong brand presence at events and through networking activities is also an effective approach.

“Branding by ‘elevating’ the product to a higher level is another way. For example, a coffee producer might enhance their brand through sustainable coffee growing, farm-stay services, and coffee-related tourism activities or sharing stories about the growers,” Dr Alonso said.

“If there is a rule of thumb here, it is that it’s important to both convey memorable experiences, images, and storytelling, and follow through by offering quality consistency,” Dr Alonso said.

Vietnamese coffee on some racks in a supermarket Brands can enhance their perceived value by associating themselves with positive core values that resonate with their target audience. (Photo: Mdv Edwards – stock.adobe.com)

RMIT Senior Program Manager for International Business Dr Dang Thao Quyen also stressed the importance of quality to a brand’s value.

She believes that businesses should have proper investments and long-term commitment for what they want to sell on the market. To do that, they need to really listen to customers, understand the market, and constantly look for ways to innovate.

“I would encourage Vietnamese businesses to find ways to tell their stories with a Vietnamese identity to international friends. They should not just follow trends but try to create trends and lead the market, for instance, through green products, sustainable development, transparent governance, and contributing to solving inequality,” Dr Quyen said.

Representatives from RMIT University at the Vietnam National Branding Forum 2024. (Photo: RMIT) Representatives from RMIT University at the Vietnam National Branding Forum 2024. (Photo: RMIT)

On sustainable development, RMIT Lecturer Dr Vu Thi Kim Oanh said Vietnamese businesses are now pushed to enhance their brands sustainably, for example, through Environmental, Social, and Governance (ESG) angles.

Preliminary results from a project measuring the ESG maturity level of Vietnamese enterprises conducted by the RMIT International Business research team indicate that many local companies have experienced various benefits of ESG compliance, including profile beautification, attracting investment, or persuading international clients.

Vietnam has a 100-million strong population and its share in the global GDP adjusted for purchasing power parity is forecast to reach a new peak of 0.97% by 2028, according to data from the International Monetary Fund.

“Along with customers' green consumption trends, branding by sustainably leveraging core values will help Vietnamese enterprises unleash the potential of not only the domestic but also global markets,” Dr Oanh concluded.

Story: Ngoc Hoang

Masthead image: Praneat – stock.adobe.com

17 April 2024

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