|A seminar highlighted brand evaluation which is now a top concern of many Vietnamese businesses in the context of seeing trend towards M&A activity. — Photo Quynh Hoa
HCM CITY (VNS) — Brand evaluation is now a top concern of many Vietnamese businesses, especially as more merger and acquisitions (M&A) occur, Vu Thu Hang, deputy director of HCM Ctiy branch's Viet Nam Chamber of Commerce and Industry, said at a seminar held yesterday in HCM City.
Hang said analyzing challenges and opportunities would help businesses assess their brand value in M&A deals and reduce pressure from competitors.
Richard Moore, chairman and general director of Richard Moore Associates (RMA), said that local companies' brand value could deteriorate if the firms did not evaluate the effectiveness of their brands.
Viet Nam has seen a rising number of M&A deals, including one from the Japanese Unicharm Group, which bought all Diana Vietnam Company shares worth about $128 million.
Masan Consumer has acquired Vinacafe Bien Hoa, while Highlands Coffee has bought the chain Pho 24 for an estimated $20 million.
Many brand values are assessed at tens of million of dollars, and though asset value and revenue can be measured, the brands have an invisible value that is not easily evaluated.
This can confuse both buyers and sellers when they attempt to assess brand value.
Nguyen Duc Son, brand strategy director of RMA, said for big brands, the brand value accounted for 40-60 per cent of the company's value.
He said that RMA's programme helped assess invisible values of brands, using 11 factors including market, customers, market share, brand culture and brand recognition.
The seminar was organised by the Viet Nam Chamber of Commerce and Industry in collaboration with Richard Moore Associates, LeBros Communications Co. and Nielsen Viet Nam Market Research. — VNS