Trademark plays an important role for businesses, as it helps persuade customers to buy products. And when Vietnam joins the World Trade Organization (WTO), trademark building becomes an urgent task for local companies. Apart from their efforts, domestic firms need the support of scientists and relevant units.

Unstable trademarks According to a report of AC Neilsen Vietnam, a large market research corporation, half of the 500 well-known trademarks in the country are Vietnamese. Local businesses have made significant efforts to promote their bands. Those attempts were honored at dozens of public events like Vietnam’s Golden Star, High-Profile Brand Name, Top-Notch Brand Nam, Prestigious Exporters and High-Quality Vietnam-Made Goods. In addition, local authorities also help enterprises protect trademarks, build logos and give advice on brand building strategies.

However, after 20 years of economic reform, it is so sad that there is no Vietnamese company listed in the 500 most renowned trademarks worldwide. Experiences from top trademarks Kinh Do Corp. is a top confectionery trademark.

Their trademark-building strategies started from a breakthrough in products, demonstrated by their quick awareness of the market’s demands and the development of new products. The attractive packaging of Kinh Do Corp. is proof of their efforts in tempting customer. Their advertising and sponsoring programs do a good job of publicizing the Kinh Do trademark.

On Vietnam’s market, the actual value of Kinh Do Corp. is up to 187.5 million USD, 10 times higher than its charter capital. Le Phung Hao, Deputy chief Executive Officer (CEO) of Kinh Do Corp., said that though the corporation exports to and has registered its trademarks in nearly 30 countries, it still has to trade under its foreign partners’ name.

Now, Kinh Do products are being sold under their trademark in some Southeast Asia nations as well as the US and Japan. It has also teamed up with Cadbury, a giant trademark in chocolate, to promote its brand names worldwide. Sai Gon Paper Corporation, a large corporation specializing in industrial and consumption paper, opted for a different way to start. Established in 1998, Sai Gon Paper Corporation decided to foray into Ho Chi Minh City’s outskirts and nearby provinces for the first five years.

 When the business in the outskirts took off, Sai Gon Paper Corporation moved downtown. Head of the corporation focused on research and identification of market demands, advertising and award programs. They also equipped their factories with modern production lines to diversify their products. Sai Gon Paper Corp. has recently picked up three prizes from a national high-profile trademark award program.

Difficulties waiting Human resources play a crucial part in promoting trademarks. Thus, many local firms tend to employ foreigners to work on trademark promotion projects. In addition, the expenses for advertising for local enterprises are limited to 10 percent of annual revenue, while those of foreign companies are many times higher.

When Vietnam joins the WTO, building and developing trademarks will become an urgent task for local companies. Apart from their efforts, domestic firms need the support of scientists and relevant units. The government ought to have policies, management and consultancy on intellectual property for local firms, and the project of national trademark building and development by 2010 should be sped up. BTA (According to Liberated Saigon newspaper)