FROM VIETNAM TO THE WORLD CAN VIET BRANDS MAKE IT?

Phi Nguyen

August 2014

CONTENT

THE INFLATED VIEW

THE HARD TRUTH

REALITY

THE WAY FORWARD?

THE INFLATED VIEW

4

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.

0%

20%

40%

60%

80%

100%

Malaysia Singapore Indonesia Philippines Thailand Vietnam GLOBAL

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.

5

TOP 10 VIET BRANDS

Rank

2014Brand

Brand Value

2014

Brand Rating

2014

Enterprise

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.

6

VIETNAM DIARY PRODUCTS

Brands Value 2014

631 Enterprise Value

5,111

12%

7

FPT

Brands Value 2014

193 Enterprise Value

685

28%

8

VIETINBANK

Brands Value 2014

117 Enterprise Value

2,945

4%

9

VIETTEL TELECOM

Brands Value 2014

95 Enterprise Value

N/A

N/A

10

VIETCOMBANK

Brands Value 2014

80 Enterprise Value

2,943

3%

11

VINAPHONE

Brands Value 2014

44 Enterprise Value

N/A

N/A

12

MILITARY COMMERCIAL

Brands Value 2014

41 Enterprise Value

672

6%

13

SACOMBANK

Brands Value 2014

38 Enterprise Value

915

4%

14

MOBIFONE

Brands Value 2014

32 Enterprise Value

N/A

N/A

15

ASIA COMMERCIAL

Brands Value 2014

31 Enterprise Value

681

5%

FOOD FOR THOUGHT…

$78.7bil

$2.2bil

$424mil

$348mil

$3.1bil

$104.6bil

REALITY

STRENGTH • DISTRIBUTION

WEAKNESSES • PRODUCT

• PRICE

• PROMOTION

• SOURCE OF FINANCE

• CORPORATE GOVERNANCE

• TECHNOLOGY

• R&D

• MANPOWER

WHERE TO FROM HERE?

FTAs TPP

WTO

Health Check Vision &

Purpose

Business

Objectives &

Strategy

Organizational &

People Strategy

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

TRANSFORMATION OR…?

FROM VIETNAM TO THE WORLD CAN VIET BRANDS MAKE IT?

SOME ARE ON THE WAY!

OTHERS? SERIOUSLY! ONLY THE

OWNERS KNOW!!!

THANK YOU! Phi Nguyen

phi@nguyenphivan.com