500 biggest brands in the world have no Vietnamese businesses

Even though it is the biggest brand in Vietnam, it is still small compared to many big brands in the world.

At the recent Forum on Brand Asset Valuation in the context of international integration organized by the Ministry of Industry and Trade in collaboration with Brand Finance Valuation Company, Mr. Vu Ba Phu - Director of the Trade Promotion Agency said that brands are considered invaluable assets of enterprises. In many enterprises, brand assets are even greater than physical assets.

Therefore, brand valuation according to financial standards is extremely important to help minimize losses for the State in the equitization process and avoid disadvantages for businesses in the process of competition, franchising, mergers and acquisitions, etc.

Vietnam Brand Forum 2017 with the theme of brand asset valuation in the context of international integration

According to Mr. Samir Dixit, Managing Director of Brand Finance Asia Pacific, brand management is important to drive stock valuations, mergers and acquisitions, and increase competitiveness regionally and globally. Therefore, brand management must fundamentally change, with a stronger focus on measuring the economic value that brands can bring.

“The report on the 500 largest brands in the world does not have any Vietnamese brands, so we can imagine where Vietnamese brands are. Even though the largest brand in Vietnam is still small compared to many large brands in the world. Vietnamese businesses need to know exactly how much their brand is to know how to increase or decrease it. When pricing, they must follow international standards, otherwise it will be difficult for foreign companies to accept it,” said Mr. Samir.

At the forum, experts assessed that brand is the most valuable asset in business, but is given little attention mainly by managers busy with promoting production, sales and profits.

In fact, the wave of mergers and acquisitions is growing strongly in the world and Vietnam is not out of that trend. The brand value of a business, although invisible, tends to increase in transfer transactions.

Mr. Dang Xuan Minh, General Director of AVM Vietnam, co-founder of the M&A Forum, asked Vietnam to cite evidence of the equitization of a state-owned enterprise. At the time of equitization, the enterprise was only valued at 3 billion VND. But a few years ago, the transfer value of Trang Tien ice cream was estimated at 500 billion VND, with the brand value alone being 150 billion VND.

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Mr. Minh said that in the context of the accelerated equitization of state-owned enterprises, it is necessary to have a clearer legal basis for brand valuation. The equitization process needs to be public and transparent, and promote brand valuation according to international standards.

At the Vietnam Brand Forum 2017, Brand Finance Asia - Pacific Company announced the Top 50 Most Valuable Brands of Vietnam 2017 for leading brands in Vietnam. In this list, there are up to 15 enterprises achieving National Brand.

This is the third year Brand Finance has conducted the valuation of Vietnamese brands. Through this, businesses will evaluate and orient their brand development strategies./.

According to VOV