National strategy on branding agricultural products needed

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Agricultural expert Hoang Trong Thuy.

What do you think about the branding of Vietnamese agricultural products, especially with Vietnam's key export products?

Currently, although Vietnam's agricultural exports are ranked secondin ASEAN and 15th in the world, 80% of export agricultural products have no brand. This shows that branding of new agricultural products is only at the level of direction and ideas, meanwhile action and speed is slow.

Brands are divided into enterprise, sectoral, national levels. At the national level, such as rice, the MARD isin charge but its influence is low. For other products,shrimp and pangasius, which aredetermined to build a national brand, are now at the first stage.

Among 10 key export agricultural products, reaching the "top" billion dollars such as wood, rubber, pepper, and cashew,none of them arebranded products.

Vietnamese coffee has been famous aroundthe world for a long time, but exporters only sellraw materials for processing. Products are sold without Vietnamese brand.

In general, up to now, branding of agricultural productsis associated with selling products, including in building national, sector or enterprise brands.

What are the reasons for the poorresults in building Vietnam’s brand?

In my opinion, the first reason is the production mindset that only focuses on productivity and volume.

In addition, businesses also face a number of legal barriers and must spend a lot of effort and money in the process of branding. The cost for trademark registration is still quite high. Even when conducting protection in foreign countries, businesses must pay to hire a local lawyer. In addition, costs also arise in terms of understanding, surveying, and evaluating export markets. Branding wastes a lot of money, time, and effortthat discourages many businesses. Besides, many businesses onlylook for profits.

In addition, it must be said that the core of branding agricultural products is community value. Only commitments to sustainable quality can build a brand. Meanwhile, Vietnam's agricultural production is still quite fragmented leading to unstable product quality. Traceability and control of inputs are quite difficult, so businesses still lack commitments in the sustainable value chain, making consumers less confident.

Coffee is a typical billion-dollar agricultural export item that faces trouble in branding. Photo: Nguyen Thanh

Regarding branding agricultural products, what do you think about the roles of state management agencies and the role of businesses, people and what are the decisive factors?

In this case, the State and enterprises must supporteach other. The state plays the role of asupporter, which promotes the creation of a legal environment, simplifies procedures and supports the promotion of images. Enterprises are the decisive factor because the brand creates value for profit, is the image of businesses and consumer’s confidence. The state manages and enterprises make business.

In the business of enterprises, the big problem is creating a market. For branding at all national, sector and enterprise levels, the enterprises themselves play an important role. Enterprises must link with producers and agricultural economic organizations. Enterprises just directly build brands for themselves and must be a leader in the value chain and product quality.

In the future,what should we do to achieve high efficiency in branding Vietnamese agricultural products, especially in the context of Vietnam's economy becoming increasingly integrated into the world economy?

Firstly, it is necessary to carry out the planning of agricultural production areas by region and promote the connection between regions, avoiding overlapping and eliminating local strengths. Currently, the agricultural production is separated across63 provinces and cities. Linking the region will create strengths and not eliminate the strengths of each locality.

Regarding marketing and trade promotion for agricultural products, I think it should be assigned to the Ministry of Agriculture and Rural Development instead of the Ministry of Industry and Trade as it is today. The Ministry of Industry and Trade outlines general policies. In branding agricultural products, we must really understand agricultural products and their path. No one understands agricultural products like MARD.

In addition, we must change the mind of producers, and focus all resources for traceability and transparency of product information andneed to be responsible to society to create the confidence of contract owners and consumers. If Vietnam has joined the global supply chain, this is the core element of branding.

Many sayVietnam is an agricultural country, so it really needs serious investment and must formulate a national strategy for branding agricultural products. What is your opinion?

I completely agree with this point. Currently, Vietnam does not have a long-term strategy to build agricultural product brands. Even enterprises themselves must build their brands at the national level.

Thank you, Sir!