From Vietnam to the World

FROM VIETNAM TO THE WORLD CAN VIET BRANDS MAKE IT?

Phi Nguyen

August 2014

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This slideshow is from a presentation at the M2 Marketing & Media events in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV

To see videos from the events, interviews with speakers and to get information on upcoming M2 - Marketing & Media Network events

Please visit  VietnamBusiness.TV

BACKGROUND

Was:• GM - Asia, Gloria Jean’s Coffees Int’l

(GJCI)• Head of Global Development - GJCI

Is:• Managing Partner - China & Indochina,

World Franchise Associates (WFA)• Managing Partner - N&A Spa Int’l JSC.• Chairperson – Nguyen Phu Invest JSC.• Global Development Advisor – GJCI

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CONTENT

THE INFLATED VIEW

THE HARD TRUTH

REALITY

THE WAY FORWARD?

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THE INFLATED VIEW

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6

THE TRUTH - VIETNAM IN REGIONAL CONTEXT

Global

• It also makes Vietnamese brands less competitive with other brands that were to enter Vietnam in the future.

Malaysia Singapore Indonesia Philippines Thailand Vietnam GLOBAL0%

20%

40%

60%

80%

100%

50%58%

32%

47% 46%

75%

50%

7%

5%

1%

2% 3%

2%

8%3%

5%

2%

3% 2%

1%

10%

40%32%

65%

48% 49%

23%32%

"UNDISCLOSED VALUE" DISCLOSED GOODWILL DISCLOSED INTANGIBLE ASSETS (exc GOODWILL) TANGIBLE NET ASSETS

• Vietnam’s composition of enterprise value is NOT in line with the global average.

• Vietnam has a very high % of tangible value making it the least intangibles or least brand driven market in the ASEAN region.

• This is extremely worrying for the Vietnamese brands as it hugely limits their ability to compete in the region.

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7

TOP 10 VIET BRANDS

Rank 2014

BrandBrand Value

2014Brand Rating

2014Enterprise

Value

Brand Value / Enterprise

Value (%)

1 Viet Nam Dairy P 637 A+ 5,111 12%

2 Fpt  193 A 685 28%

3 VietinBank 117 A+ 2,947 4%

4 Viettel Telecom 95 A N/A N/A

5 JSC Bank CenterCredit 80 A+ 2,943 3%

6 Vinaphone 44 A- N/A N/A

7 Military Commerc 41 A+ 672 6%

8 Sacombank 38 A 915 4%

9 Mobifone 32 A- N/A N/A

10 Asia Commercial 31 A 681 5%

• The brands are relatively weak in Brand Strength. A+ is the highest brand rating

Date of valuation “ 31st December 2013”

• The Brand values are not very high. Outside the top 3, the rest are all under US$100mil.

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8

VIETNAM DIARY PRODUCTS

Brands Value 2014

631Enterprise Value

5,111

12%Visit VietnamBusiness.TV 

for business videos, news & research

9

FPT

Brands Value 2014

193Enterprise Value

685

28%Visit VietnamBusiness.TV 

for business videos, news & research

10

VIETINBANK

Brands Value 2014

117Enterprise Value

2,945

4%Visit VietnamBusiness.TV 

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11

VIETTEL TELECOM

Brands Value 2014

95Enterprise Value

N/A

N/AVisit VietnamBusiness.TV 

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12

VIETCOMBANK 

Brands Value 2014

80Enterprise Value

2,943

3%Visit VietnamBusiness.TV 

for business videos, news & research

13

VINAPHONE

Brands Value 2014

44Enterprise Value

N/A

N/AVisit VietnamBusiness.TV 

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14

MILITARY COMMERCIAL

Brands Value 2014

41Enterprise Value

672

6%Visit VietnamBusiness.TV 

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15

SACOMBANK

Brands Value 2014

38Enterprise Value

915

4%Visit VietnamBusiness.TV 

for business videos, news & research

16

MOBIFONE

Brands Value 2014

32Enterprise Value

N/A

N/AVisit VietnamBusiness.TV 

for business videos, news & research

17

ASIA COMMERCIAL

Brands Value 2014

31Enterprise Value

681

5%Visit VietnamBusiness.TV 

for business videos, news & research

FOOD FOR THOUGHT…

$78.7bil

$2.2bil

$424mil

$348mil

$3.1bil

$104.6bil

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REALITY

STRENGTH• DISTRIBUTION

WEAKNESSES• PRODUCT• PRICE• PROMOTION• SOURCE OF FINANCE• CORPORATE GOVERNANCE• TECHNOLOGY• R&D• MANPOWER

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WHERE TO FROM HERE?

FTAsTPP

WTO

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Health Check Vision & Purpose

Business Objectives &

Strategy

Organizational & People Strategy

70% fail in the transformation process, 85% of which due to leadershipJohn P. Kotter - Havard Business Review

TRANSFORMATION OR…?

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FROM VIETNAM TO THE WORLDCAN VIET BRANDS MAKE IT?

SOME ARE ON THE WAY!

OTHERS? SERIOUSLY! ONLY THE OWNERS KNOW!!!

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THANK YOU!Phi Nguyen

phi@nguyenphivan.com

Visit VietnamBusiness.TV for business videos, news & research

This slideshow is from a presentation at the M2 Marketing & Media events in Ho Chi Minh City, Vietnam organized by ITV-Asia.com and VietnamBusiness.TV

To see videos from the events, interviews with speakers and to get information on upcoming M2 - Marketing & Media Network events

Please visit  VietnamBusiness.TV