124 Vietnam national brands generate over US$60 billion

The combined revenue of 124 Vietnamese enterprises having their products recognized as national brands reached over VND1,400 trillion (US$60.6 billion) and paid VND200 trillion (US$8.66 billion) in taxes in 2019.

Prime Minister Nguyen Xuan Phuc at the meeting. Photo: Quang Hieu.

Additionally, these firms have created more than 470,000 jobs and raised VND137 trillion (US$6 billion) by exporting Vietnamese products to international markets.

At a meeting on November 25, Minister of Industry and Trade and Chairman of the National Brand Council Tran Tuan Anh said from 1,000 enterprises, the council has selected 124 with their products qualified as Vietnamese national brands.

Notably, the number of those enterprises has steadily increased over the years, from 30 in 2008 to 97 in 2018 and a record high of 124 in 2020. Of the total, only 12% are state-owned enterprises, which shows the importance of different economic components, including the private sector with names such as THACO, BRG, TH Truemilk, among others, state Prime Minister Nguyen Xuan Phuc.

The Vietnam PM said 2020 proves to be a challenging year for both the government, enterprises and people. During the Covid-19 pandemic and successive natural disasters, Vietnam continues to deliver positive economic growth, estimated to be 2.5 – 3% for this year.

According to Mr. Phuc, one of the key contributors to this achievement is from trading activities, as Vietnam for the first time has recorded a trade surplus of over US$20 billion.

A positive economic outlook, therefore, is building trust among the business community, added Mr. Phuc.

Representatives of 124 enterprises and Prime Minister Nguyen Xuan Phuc. Photo: Quang Hieu.

Favorable policies, not barriers for growth

In 2019, Vietnam’s brand value ranked 42nd among the 100 most valuable nation brands with US$247 billion, up 5.4% year-on-year or US$12 billion.

Meanwhile, Forbes’ ranking revealed the combined value of top 50 Vietnamese brands is estimated at nearly US$10 billion.

Mr. Phuc, nevertheless, said there remain challenges for the business community to continue growing, including further integration into global value chains.

The PM requested the Ministry of Industry and Trade to provide more support for local enterprises to enhance their competitiveness, so that they could bring more benefits back to the country.

With more Vietnamese national brands, the country would be nearer to the goal of prosperity, stressed Mr. Phuc, adding he expected local governments to contribute more for the establishment of national brands, instead of creating barriers for growth.

Additionally, the PM requested ministries and related agencies to consider more favorable polices for enterprises, especially when tens of thousands of enterprises went bankrupt as a result of the current crisis.

The government would continue to provide a platform for enterprises to develop, including small and medium ones, so that they could soon be included among national brands, added Mr. Phuc.