Vietnamese agricultural products in "foreign costumes"
14/12/2018
More than 80% of Vietnam's agricultural product exports carrying foreign brands is an unacceptable fact. But there’s still another fact that is much more bitter to digest: many Vietnamese products consumed in domestic markets are also borrowing foreign brands. Why there exists such an awkward situation?
The National Office of Intellectual Property (Ministry of Science and Technology) has just released a statistical figure that surprises many people.
According to this number, of the more than 90,000 registered trademarks in Vietnam, only about 15% belong to domestic enterprises. That means more than 80% of the agricultural products are being sold internationally through foreign brands. Due to the lack of brand names, the competitiveness of many Vietnamese agricultural products is very poor when exported to big markets.
In fact, Vietnam's agricultural exports have grown rapidly over the past 10 years. Export turnover of agricultural products increased from US $ 16.5 billion in 2009 to US $ 36.4 billion in 2017. Notably, in the period 2008-2017, Vietnam recorded an average annual surplus of $ 8 billion in agricultural exports.
According to this number, of the more than 90,000 registered trademarks in Vietnam, only about 15% belong to domestic enterprises. That means more than 80% of the agricultural products are being sold internationally through foreign brands. Due to the lack of brand names, the competitiveness of many Vietnamese agricultural products is very poor when exported to big markets.
In fact, Vietnam's agricultural exports have grown rapidly over the past 10 years. Export turnover of agricultural products increased from US $ 16.5 billion in 2009 to US $ 36.4 billion in 2017. Notably, in the period 2008-2017, Vietnam recorded an average annual surplus of $ 8 billion in agricultural exports.
Some of Vietnam's agricultural commodities have a high share of export value and a very high position in the world such as pepper, cashew, shrimp, pangasius, coffee, furniture and rice. Exports of agricultural products this year are forecast to reach $ 40 billion. However, the country’s export price ranking is very low: pepper ranks No. 1 in the world, but export price only at 8th, cashew nuts also ranks No. 1, but stands at 6th in price.
Coffee is another typical example of this. Vietnam is the world's No. 2 exporter of coffee, even number 1 in Robusta export, but when talking about of coffee, the world's consumers just think of Brazil. China is the main export market for Vietnamese rice, but Chinese consumers are unaware of the Vietnamese rice brand, they only know Thai and Indian rice.
Many Vietnamese trademarks are being registered intellectual property of foreign enterprises. Buon Ma Thuot coffee, for example, is registered by a business in Guangzhou (China); Phu Quoc fish sauce by producer from Hong Kong; or Vietnamese pho is selling very well in the United States but is "Made in Thailand".
Or Vietnam's tea is now being exported to more than 100 countries and territories, ranking 7th in the world in terms of output with annual export value to 3 major markets Pakistan, Taiwan, Russia accounts almost half of total tea export turnover of the country. However, the Vietnamese tea brand is almost unknown in the world market.
The reason is simple. By far, a majority of tea exports is in the form of raw material, with average selling price of only 60% of the world market price. Sadly, due to the fact that the exporters have no brand names, no deep-processing products, foreign importers just process the raw tea of Vietnam, pack the finished products and affix their brand then sell to the market.
More than 80% of Vietnam's agricultural product exports carrying foreign brands is an unacceptable fact. But there’s still another fact that is much more bitter to digest: many Vietnamese products consumed in domestic markets are also borrowing foreign brands. Why there exists such an awkward situation?
For example, Vietnamese rice is borrowing foreign brands to raise the selling price. Accordingly, 64% of rice in the market is Vietnam rice but labeled as foreign to increase profits. A recent study showed that 53% of consumers prefer rice from Thailand, Cambodia, Japan ... so many rice dealers have attached foreign labels for Vietnamese rice to facilitate their sales and raise selling price. As a result, of the 67 types of rice currently available on the market, only 21 types of rice affixed with Vietnamese names. Home appliances, footwear also tend to be foreign oriented. Local businesses explain foreign sounded names could help increasing sales.
Currently, about 80 geographical indications have been granted in the whole country, but local businesses have not yet made good use of these to build their own brands and Vietnamese specialized products. In addition, the building of national and then regional brand in the strategy of branding agricultural products has yet been sufficiently regarded. With the exception of the rice sector where the Ministry of Agriculture and Rural Development is sponsoring the building of national rice brand, no individuals, units or governing bodies have taken responsibilities in building Vietnamese brand names for other agricultural products.
When talking about Brazil, everyone knows that’s the world's No. 1 coffee country. Just mention Bordeaux (France), the whole world thinks of wine, or when refer to pizza we all think of Italy. All these successful branding lessons are worth thinking about.
(Source: DTTCO)
Many Vietnamese trademarks are being registered intellectual property of foreign enterprises. Buon Ma Thuot coffee, for example, is registered by a business in Guangzhou (China); Phu Quoc fish sauce by producer from Hong Kong; or Vietnamese pho is selling very well in the United States but is "Made in Thailand".
Or Vietnam's tea is now being exported to more than 100 countries and territories, ranking 7th in the world in terms of output with annual export value to 3 major markets Pakistan, Taiwan, Russia accounts almost half of total tea export turnover of the country. However, the Vietnamese tea brand is almost unknown in the world market.
The reason is simple. By far, a majority of tea exports is in the form of raw material, with average selling price of only 60% of the world market price. Sadly, due to the fact that the exporters have no brand names, no deep-processing products, foreign importers just process the raw tea of Vietnam, pack the finished products and affix their brand then sell to the market.
More than 80% of Vietnam's agricultural product exports carrying foreign brands is an unacceptable fact. But there’s still another fact that is much more bitter to digest: many Vietnamese products consumed in domestic markets are also borrowing foreign brands. Why there exists such an awkward situation?
For example, Vietnamese rice is borrowing foreign brands to raise the selling price. Accordingly, 64% of rice in the market is Vietnam rice but labeled as foreign to increase profits. A recent study showed that 53% of consumers prefer rice from Thailand, Cambodia, Japan ... so many rice dealers have attached foreign labels for Vietnamese rice to facilitate their sales and raise selling price. As a result, of the 67 types of rice currently available on the market, only 21 types of rice affixed with Vietnamese names. Home appliances, footwear also tend to be foreign oriented. Local businesses explain foreign sounded names could help increasing sales.
Currently, about 80 geographical indications have been granted in the whole country, but local businesses have not yet made good use of these to build their own brands and Vietnamese specialized products. In addition, the building of national and then regional brand in the strategy of branding agricultural products has yet been sufficiently regarded. With the exception of the rice sector where the Ministry of Agriculture and Rural Development is sponsoring the building of national rice brand, no individuals, units or governing bodies have taken responsibilities in building Vietnamese brand names for other agricultural products.
When talking about Brazil, everyone knows that’s the world's No. 1 coffee country. Just mention Bordeaux (France), the whole world thinks of wine, or when refer to pizza we all think of Italy. All these successful branding lessons are worth thinking about.
(Source: DTTCO)