About the annual report on the most valuable and powerful IT service brands

The Brand Finance Top 50 Vietnam Brands Report 2016on Vietnam’s intangible assets and brands Contents David’s Foreword4Samir’s Foreword5 - 6Introduction7Vietnam’s Report Card on Intangible Assets8The Brand Valuation Gaps during M&A9The IP ambassador for ASEAN10Brand Performance and Sustainable Development11Getting A Grip on Intangibles12 - 15Vietnam Top 10 Most Valuable Brands 201616 - 17Vietnam Top 50 Brands 201618 - 19Background on Intangible Assets21 - 25Trademark and Other Intangibles26 - 27New International Standard on Brand Valuation28 - 34Marketing Investment or Marketing Expenditure?35 - 36Methodology37 - 38Glossary of Terms39Contact Details41Understand Your Brand’s Value42 - 43 Foreword By contrast another valuer might believe theopposite. Some take the view that Apple will go fromstrength to strength in watches, televisions, financeand the auto industry and believe that it will shape all There is now a widely accepted global brandvaluation standard (ISO 10668) and the InternationalValuation Standards Council has produced a broaderstandard on the valuation of Intangible Assetsincluding brands. Brand valuations are regularly David HaighChief Executive Officer Based on the results of this year’s Brand FinanceGlobal 500, 18% of all quoted company enterprisevalue, is made up of brands. What this points to is arenewed need to educate and explain how brandvaluations are conducted and how critical an In recent years there has been a growing controversyover the validity of brand valuations in general andbrand valuation league tables in particular, so with The primary point of contention rests on thesignificant variation in the published values of brandsby the major brand valuation agencies. However, we Just as equity analysts differ significantly in theirtarget share prices for companies, so too can thosein our industry differ in valuations of brands. Themain reasons for differences of opinion are: brandasset definition, date of the valuation, approach Taking Apple as an example, it is quite possible forone serious valuer to take the view that Apple’sdominance in smart phones is coming to an end, thatvolumes and margins will start dropping, that there Foreword So what challenges does all this pose for theVietnamese’s brands? The short answer is •Vietnam will be more inclined to become amanufacturing hub than a regional business centre.This will impact the growth and creation of stronglocal brands from Vietnam just as it happened in •The competence and skill set of brand managersin Vietnam will have to be enhanced so they canmanage Vietnamese brands with a regional mind-set.This would not happen naturally just because the Samir DixitManaging Director, Home to 10% of the global population and poised tobe the 5th largest economy by 2020, ASEANcountries have a lot more to plan for their business •The business will have to strongly and quicklyadapt to a new way of doing business and will haveto go through both reinvention and a sharp learning Most brands often approach ASEAN as a singlemarket and use a uniform strategy across ASEAN.While some of the strategies work well in the homemarkets or larger markets, given the geographic andeconomic diversity combined with the variedconsumer mix, the uniform strategies don’t •The manufacturing, distribution and retailingcapabilities will have to be at both local as well as •Vietnamese brands will have to be moreaggressive and give up their usual wait and watch The real brand and business success issuestherefore begin due to two critical factors that a)When the local brands from the ASEAN countriesstart to imitate the western brands, by doing so, theynot only lose their local relevance but also their It is therefore increasingly important for Vietnamesecompanies, no matter what their size, to recognisetheir brands as a strategic asset and invest in the b)The brands in the smaller ASEAN countries areforced to compete with their larger ASEANcounterparts. These counterparts, unlike the global The key challenge to the marketing and brandprofessionals in Vietnam therefore is to effectivelydemonstrate that they have a robust approach to Foreword Valuation is a great tool to evaluate, monitor andtrack the returns on brand investments and the longterm contribution of your brand for your businesssuccess. This becomes critical since hugeinvestments are already being made in the design,R&D, launch and re-launch and ongoing tactical This is the challenge that we address in our 2016 We have also observed that a number of brandvaluation consultancies produce brand rankingtables using methods that do not stand up totechnical scrutiny or to the ISO Standards for Brand Brand Finance published brand rankings are theworld’s only published ranking of ISO compliant This annual report pits the best Vietnam brandsagainst one another in the most definitive list ofbrand values available. The value accorded to eachbrand is a summary of its financial strength. Each