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Brand Finance announces Top 50 most valuable Vietnamese brands

Released at: 14:13, 05/12/2017

Brand Finance announces Top 50 most valuable Vietnamese brands

Photo: Mibrand

List based on brand value and Brand Finance's Brand Strength Index (BSI) in Vietnam.

by Minh Do

The Mobile World Investment JSC (MWG) is the strongest Vietnamese brand in Vietnam according to the latest report from Brand Finance, the independent valuation and strategy consultancy.

Brand Finance recently announced its Top 50 Most Valuable Vietnamese Brands 2017, based on brand value and Brand Finance’s Brand Strength Index (BSI) in Vietnam.

MWG has a BSI of 82 and a brand rating of AAA-, followed by Vinamilk (77.4 and AA+), Vincom Retail (74.4 and AA), Dien may Xanh (74.2 and AA), and Vietnam Airlines (73.8 and AA).

The company ranked 15th among the 50 most valuable Vietnamese brands in 2017, with its value increasing 20 per cent compared to the list for 2016.

Viettel topped the list of most valuable brands in 2017 with a brand value of $2.5 billion, followed by Vinamilk with $1.36 billion, VNPT with $726 million, Vinhomes with $604 million, and Sabeco with $598 million.

The total brand value of the Top 50 stands at $11.2 billion, an increase of 32 per cent against last year. The Top 10 brands make up 68 per cent of the Top 50’s brand value.

“We are seeing more and more unpredictable behavior from brands and customers alike,” said Mr. Samir Dixit, Managing Director of Brand Finance Asia Pacific. “Loyalty has been put aside for discounts. Brand equity has been put aside for sales. ‘Short term’, ‘quick results’, and ‘sell and move on’ are some of the new mantras. So the only thing that remains a constant is the brand and that’s why it is the most critical business asset.”

Shareholders invest for the intangible value increasing the share price, he added, mostly driven by brands. Business managers, however, seldom look at it that way, giving their undivided focus to sales, balance sheet performance, and cost cutting.

A strong external brand must be effectively managed internally first. Internal brand management therefore is more critical than external brand management.

Consistency is the single largest brand value driver and that comes from everyone inside the organization being on the same page, having the same brand understanding, its messaging, its application, and so on. In Brand Finance’s assessment, 10-15 per cent of the total brand value is influenced by how well the brand is managed and understood internally. “This is the challenge that we address in our 2017 Brand Forum and our report,” Mr. Dixit said.

2018 will be an unpredictable year. There will be new challenges emerging each day, some that global economies are used to and some that will come out of nowhere and surprise everyone. “Being in ASEAN markets with a growing consumer base isn’t enough,” Mr. Dixit said. “Business growth is getting more and more unpredictable. Forecasting is impossible. This will be the new norm for everyone. And brands will not be immune to it either.”

This is the third time Brand Finance has conducted a brand valuation in Vietnam.

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