HCM CIty Party Secretary Nguyen Thien Nhan tests Viettel's 5g network. With $4.3 milion in brand value, Viettel leads the top-50 most valuable local brands. — VNA/VNS Photo
The global independent firm of Brand Finance has ranked Viettel, VNPT and Vinamilk among the top three of the 50 most valuable local brands.
The top 10 corporations contributed 68 per cent of the total value, while the bottom 10 contributed two per cent, according to information released at an event held by Mibrand Viet Nam and Brand Finance in Ha Noi on Wednesday.
The brand value of the top 50 firms totalled US$18.9 million, an increase of 9 per cent from the previous ranking in 2017. On the list, the telecommunication industry accounted for 38 per cent, food and beverage 15 per cent, banks 11 per cent, beer 8 per cent, realty 7 per cent, and retail 5 per cent.
Samir Dixit, CEO of Brand Finance Asia – Pacific, said: “A good brand has a great influence on businesses in technology, especially today when everything is connected online and information is shared. Consumers are now very tech-savvy and business should follow their trends or they will be left behind."
“Businesses should not only pay attention to profit. They should also enhance their brand because it is a valuable asset. They must focus on branding or they will be forgotten,” he added.
The ranking from Brand Finance is based on its international standard in which the royalty rate is calculated with reference to the Brand Strength Index (BSI), a competitive benchmarking tool that identifies the strength of each brand in question.
This rate is then supported by a profit margin analysis of comparable companies. Profit margins have been shown to be directly correlated to the royalty rates that brands are able to command.
Lai Tien Manh, CEO of Mibrand Vietnam, said: “Vietnamese brands are on the right track, developing their business, products and customers to compete with others in the world.”
The other companies in the top 10 included Vinhomes, Sabeco, Mobifone, Vietinbank, Vinaphone, BIDV and Petrolimex. — VNS