Clothes producers Viet Tien and Garment 10 were among a handful of local companies that were yesterday recognised as the top value brands in Vietnam under a programme jointly held by the Vietnam Economic Times and the Vietnam Trade Promotion Agency.

Vice President Truong My Hoa and Minister of Trade Truong Dinh Tuyen yesterday centered the awards on the best branding, which include Kinh Do joint stock confectioner, Truong An cooking oil company, Soc Trang Sugarcane company and a series of other companies that operate in different industries.

A conference held yesterday morning by the co-organisers gathered input from entrepreneurs and experts on ways to build successful brands in the context of economic integration.

Dang Le Nguyen Vu, president of G7 Mart, Chain said that while quality was a fundamental necessity, distinctive Vietnamese cultural values also needed to be part of a local brand that wins over foreign rivals.

"It's an uneven war when globalisation forms a porous border of goods and culture. Rather than applying Western theories word-by-word, Vietnamese firms should build our own national pride and identity, which can help us win the hearts and minds of a local population of 80mil and 3mil overseas Vietnamese," Vu said.

Vu cited the example of Korea. The popularity of Korean movies and cultural products in turn increased Korea's export of goods by US$10bil.

Nguyen Sy Dung, deputy director of the National Assembly's Office, said that old methods of seller-centred production has been a hindrance to developing local brands.

"When the State produces your products, you don't have to care about brands," he said.

He also said that a deficiency in the legal framework and institutions, the proliferation of counterfeit goods, and competition from strong brands can pose challenges for enterprises in earning brand recognition.

Le Quoc An, president of the Vietnam Textile and Garment Corporation (Vinatex), said that not a few companies within Vinatex still think that to build a brand is to advertise - what he calls only the "surface work."

"What is more important is to improve what's underneath, which is product quality and punctual delivery."

Vietnam earned US$4.84bil from garment exports in 2005, about 70% of which was through labour-intensive subcontracting.

While Vietnam needs to remain competitive in crude oil, clothing and footwear, a shift to value-added products was crucial, even more so after it joins the WTO, said UN Development Programme economist Scott Cheshier.

"Simply put, what is needed is to export canned fruits instead of raw fruits. To increase added-value, packaging, and quality," he said.

Cheshier stressed the importance of driving financial resources away from profiteering and speculation in real estate deals in order to avoid a financial crisis and focus resources on increasing technology, which can in turn lead Vietnam to higher value-added production.

Source: Viet Nam News