The Southeast region (including Ho Chi Minh City and 5 provinces of Dong Nai, Binh Duong, Ba Ria - Vung Tau, Binh Phuoc, Tay Ninh) is considered one of a dynamic, creative economic regions, leading in innovation and development of the country.
In which, these provinces contribute 32% of the country's GDP (gross domestic product), 44.7% of total state budget revenue. Currently, the Southeast region attracts the largest FDI capital (foreign direct investment), accounting for 41.1% of total FDI capital of the country, affirming its leading role in the country's economy. In particular, the Southeast region has become a key economic region of the country, leading in integration, industrial and trade development and investment attraction, with many large-scale, high-tech projects, creating branded products. Some product groups that have recorded high export turnover values are electronics, machinery and components; machinery, equipment, tools and spare parts; textiles; footwear; wood and wood products; means of transport and spare parts; seafood, vegetables and fruits and coffee.
At a conference on trade promotion and export development in the Southeast region held recently, Ms. Phan Thi Khanh Duyen - Deputy Director of Department of Industry and Trade of Binh Duong province, said: Export activities and exported goods of the Southeast region have been present in nearly 200 countries and territories. In which, they are mainly concentrated in traditional markets. Especially with markets where Vietnam has free trade agreements (FTAs) such as the United States, China, EU, Japan, Korea, ASEAN, etc.
According to Ms. Phan Thi Khanh Duyen, there is a worrying fact that most products in the Southeast region have not yet built a brand. Vietnamese products are mainly exported raw, exported through intermediaries or processed for foreign brands. Very few products can be exported under their own brand. That is also general situation of the country's key export industries.
Statistics from Ministry of Industry and Trade show that up to 70%-80% of Vietnam's total output of goods is exported raw. In general, in the global trade value chain, there are many Vietnamese products but they are only "made in Vietnam". The brands belong to foreign enterprises.
Economic experts and localities in the Southeast region believe that in a new period, brands are soft internal force for development of enterprises in the region. Building a Southeast brand is not simply about good quality products and creative designs but also contributes to affirming identity and position of Vietnamese enterprises in the global supply chain. At a higher level, brand development will be a piece in national brand ecosystem, contributing to positioning Vietnamese goods in the international arena, enhancing value of regional and local goods.
From another perspective, building a brand is to increase internal force of enterprises. Because more clearly the brand's value is positioned, the higher market coverage of the enterprise's products in the market, the enterprise's products can go further and deeper into market through consumption habits of global consumers.
According to records, in recent years, departments, branches and localities in the Southeast region have always paid attention to building brands and trademarks for local products. Ministry of Industry and Trade also organizes selection of rural industrial products at regional level, gradually building brands for local products, towards developing national brands. Implementing One Commune One Product (OCOP) Program, many localities in the region have effectively exploited potential and advantages of craft villages and typical agricultural products to promote production of goods, gradually raising position and value of products.
However, up to now, there has been no strategy for developing a common brand at the Southeast region level. Regarding this issue, many enterprises frankly admitted that due to weak internal strength, they have not focused on building brands and have not clearly defined legal corridor that needs to be implemented to protect their brands in the market, especially foreign markets. Enterprises in the region have not yet had close links to form large production centers for key export products, moving towards building brands for the Southeast region.
In order to achieve goals of overall strategy and maintain a high export position, Deputy Director of Department of Industry and Trade of Binh Duong province proposed that it is necessary to build a common brand for the Southeast region for region's four key products based on the advantages of local provinces and cities.
First, leather and footwear industry: Prime Minister has approved Strategy for development of Vietnamese textile and footwear industry to 2030, with a vision to 2035 (according to Decision No.1643/QD-TTg). Accordingly, leather and footwear is identified as one of the country's key export industries; has quality products, competitive in the world market, meeting domestic market demand; maintaining second position in group of leading leather and footwear manufacturing and exporting countries in the world. Currently, about 65% of Vietnam's footwear production capacity is concentrated in the Southeast region.
However, enterprises mainly process products, with low added value, without developing raw material and auxiliary industry and have not built many strong brands for domestic and foreign markets. Most of the raw materials and auxiliary materials for production are imported from China, Korea and Southeast Asian countries. This is a limiting factor in developing private brands for businesses in the Southeast region, participating in global supply chain.
Therefore, it is necessary to build a trading center for developing raw materials, auxiliary materials and innovation, helping to promote operation of raw material and auxiliary materials market in direction of standardization and transparency. From there, enterprises in the industry will both improve their dynamism and efficiency and have opportunity to rise up and participate in industry supply chain, transparently disclosing information about their product supply chain, starting from the raw material stage... Only then enterprises in the leather and footwear industry, especially small and medium-sized enterprises, have opportunity to rise up and participate in the industry supply chain.
Second, wood processing industry: The Southeast is the largest wood processing and production center in the country, with Binh Duong alone accounting for 41% of the country's total export products. Although it has a solid position in domestic market, strong brands of wooden furniture and interiors in the Southeast region have not been able to make their mark in international market as most of them have to "borrow the names" of foreign enterprises when exporting to foreign markets. Most domestic enterprises manufacture according to orders, styles and designs from foreign customers and have not proactively launched models and designs with Vietnamese cultural values. In that situation, wood industry in the Southeast region needs to re-plan and promote vertical and horizontal linkages to build brands in the wood industry. In which, vertical linkage is to promote linkages from stage of forest planting to wood processing and exploitation, product completion and market search of localities in the region. Horizontal linkages are domestic wood business associations that need to promote activities, link together and clearly demonstrate their role with member businesses in developing brands associated with the development orientation of the country's key industries.
In addition, it is necessary to invest in research and development (R&D) to improve quality and create new products, meeting diverse needs of consumers, while exploiting local cultural elements to create unique products with strong regional imprints. For example, fashion products, handicrafts or specialty foods can be designed with motifs and styles typical of the Southeast.
Third, agricultural products: The Southeast region has a lot of potential to develop regional agricultural product brands and trademarks. In recent times, provinces and cities have made many efforts to find markets for agricultural products in direction of strengthening connection between circulation and production, promoting chain linkages to connect supply and demand, ensuring stable input and output for branded products...
However, agricultural products in the Southeast region still do not have many export markets commensurate with development potential of the region. Most of them are still exported through unofficial channels. Therefore, building and developing brands in right direction will be basis for affirming the stability, strength and sustainability of businesses when entering current open market. Typical examples are citrus fruits, durian, coffee...
Localities in the region need to have a master plan, a planning of growing areas to avoid competition between localities. Along with that, orienting investment in consumer products with national and even global brands. That means having a long-term investment policy for products with national brands that meet international standards.
Finally, information technology industry: Provinces and cities need to have solutions to link up and develop information technology industry into a key industry of the region, moving towards becoming a key export industry. In fact, in recent times, the provinces and cities of the Southeast region in field of science, technology and engineering have affirmed their role as a driving force, contributing to implementation of socio-economic development goals towards the most industrialization and modernization.
The region needs to have a mechanism to assess current situation, complete project to build a dynamic area of information technology industry, attract investment in production of electrical and electronic products, Internet of Things (IoT) products, artificial intelligence, etc. Create internal strength to form a dynamic area of the information technology industry, digital technology, attract investment in production of electrical and electronic products, IoT products, artificial intelligence, to create a legal framework for building and implementing tasks, etc., creating advantages for development of information technology industry.

Source: Vitic/ congthuong.vn