Restructuring through M&A can take advantage of the understanding local groups have of their markets, Photo: Shutterstock After 10 years of lengthy internal competition, South Korean Lotte Corporation will fully divest Bibica, selling 44.03 per cent or 6.8 million shares and making The PAN Group the largest shareholder in the Vietnamese confectionery maker. The PAN Group has been vying for controlling stakes of Bibica to retain the Vietnamese confectionery brands in the market amid the aggressive expansion of foreign confectionery products. In 2014, Kinh Do sold 80 per cent of its confectionery business Mondelez International, making it the biggest deal in the history of Vietnam’s confectionery industry. After five years of deals, KDC is making its comeback, resurrecting its snack business under the KIDO brand and rolling out its first moon cake products last year. Meanwhile, Thai cement giant SCG Group has completed the acquisition of its seventh packaging company in Vietnam, Bien Hoa Packaging JSC, at a cost of VND2.07 trillion ($89 million). This purchase was commenced through a subsidiary of Thai Containers Group Co., Ltd. (TCG), a 70/30 joint venture between SCG and Japan’s Rengo Co., Ltd. According to SCG’s annual report, the group boasts several local subsidiaries including Alcamax Packaging, AP Packaging, Packamex, Tin Thanh Packaging, and New Asia Industries. The company also holds controlling interests in Vina Kraft Paper, the largest packaging manufacturer in Vietnam. The mergers and acquisitions (M&A) market has been buzzing with activity in retail, consumer goods, real estate, food and beverage sectors, in which growth is driven by the country’s large population and expanding middle-income class. However, the increasing number of deals comes with concern that Vietnamese brands may fade away once foreign investors buy into local companies. Samuel Son-Tung Vu, partner at law firm Bae, Kim & Lee Vietnam, told VIR that there are …
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Vietnam’s brand value rises to US$247 billion, ranking 42nd worldwide
The Hanoitimes - In 2019, the combined value of Vietnam’s top 50 most valuable brands reached over US$9.3 billion, according to Forbes Vietnam’s ranking. Vietnam’s brand value ranked 42 nd among the 100 most valuable nation brands in 2019 at US$247 billion, up 5.4% year-on-year or US$12 billion, according to a report by the Vietnam Trade Promotion Agency (VIETTRADE) under the Ministry of Industry and Trade (MoIT). Illustrative photo. The report also announced priorities for the Vietnam National Brand Program from 2020 to 2030, aiming to promote national brands through the introduction of Vietnamese high quality products. In 2019, the combined value of Vietnam’s top 50 most valuable brands reached over US$9.3 billion, according to Forbes Vietnam’s ranking, of which 50% have products qualified as national brands such as Thaco, Hoa Phat, Vinamilk, Habeco, Vietcombank, Vietnam Airlines, Cadivi, Viglacera, Saigontourist, among others. “Over the last three years, the ranking of Vietnam’s national brands has been improving with an increase of eight ranks and the country is named among strong brands, thanks to the government’s efforts to improve the business environments, promote trade and positive economic outlook, as well as the Vietnam National Brand Program,” stated the MoIT. However, the MoIT acknowledged shortcomings of the program, including the inefficient legal framework and coordination between state agencies at central and provincial levels, not to mention low awareness of branding. The MoIT stated it aims to support enterprises in creating and promoting brands with an aim to enhance competitiveness, particularly as Vietnam is pushing for greater global economic integration. Recently, Prime Minister Nguyen Xuan Phuc issued Decision No.30 providing mechanisms for the implementation of the Vietnam National Brand Program, focusing on developing Vietnamese brands on the back of unique value of each product. The MoIT targets to …
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Vietnamese brands thirsty for support policies
The Hanoitimes - Many Vietnamese enterprises do not truly understand the significance of brands or see them as a long-term investment. While Vietnam is beefing up global integration, brand building is a key step to help Vietnamese products compete with their foreign peers. However, there is still a lack of efforts from both enterprises and local authorities in the process of developing and managing brands for local products. Local enterprises introduce products to customers at an international trade fair in Hanoi. Photo: Cong Hung In 2019, the Vietnam brand was valued at US$247 billion, up 5.4% year-on-year, ranking 42nd among the 100 most valuable nation brands, according to Brand Finance. Despite such improvements, many Vietnamese brands have not been heard of by local and international customers. A survey of over 500 enterprises conducted by the Ministry of Industry and Trade revealed brand recognition among customers is still low, as only 20% of the number of enterprises are focusing on brand building and registering their brands in Vietnam. As such, the majority have not considered registering brands in the international market or pay attention to the process of brand management and utilization. Le Tat Chien, deputy director of the Intellectual Property Training and Consultation Center under the Ministry of Science and Technology, said enterprises’ lack of attention to promoting brands abroad is a major issue that restricts their efforts to penetrate foreign markets. Sharing the same view, Deputy Head of the Party Central Committee’s Economic Commission Nguyen Huu Nghia expressed concern that several enterprises are ignoring the necessity of building and managing brands, or they are not taking into account the importance of brands as an instrument in gaining market shares. Vietnamese enterprises do not often advertise their brands on the media or just do it occasionally, so it is not sufficient to leave a deep impression on …
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