Vietnam warned it may lose strong national brands after selling SOEs

Prime Minister Nguyen Xuan Phuc has instructed state management agencies to protect strong national brands including Habeco Sabeco and Vinamilk after the state sells its stakes in the enterprises.

Robert Tran from Robenny, a consultancy group, commented that it would be a difficult task for Vietnam to implement two tasks at the same time – selling state’s shares for the best prices and preserving national brands. It is expected that the shares will be put into auctions. Meanwhile, foreign investors are very powerful in capital and experience, and all of them show their strong determination to penetrate Vietnam, a promising market with stable two-digit growth rates for many years.

vietnam warned it may lose strong national brands after selling soes

Two years ago, ThaiBev, a beverage giant, once sent words intimating that it wanted to buy Sabeco at the price of US$2 billion. One year later, it offered US$1 billion for 40% of Sabeco’s stakes (Sabeco was then valued at US$2.5 billion). Sources said that ThaiBev, which now holds 11% of Vinamilk, will try to acquire Sabeco’s and Vinamilk’s shares at all costs. Strong brands could fall into foreign hands. This happened with many other Vietnamese brands in the past. Huda Beer, for example, which once dominated the central region, was taken over by Danish Carlsberg, which also holds shares in many other Vietnamese breweries, from Ha Long to Habeco and Halida. P/S, a well-known Vietnamese toothpaste brand, which once accounted for 60% of domestic market share, has been taken over by Unilever. Meanwhile, Da Lan, which once held 70% of market share and dislodged Chinese toothpaste products, has been taken over by Colgate – Palmolive. Experts, citing the examples, have called on the government to take cautious steps when selling its stakes, or Vietnam will suffer in the future. “Vietnam may have no more strong brands of national stature. If so, the national economy’s vitality will depend on foreign businesses,” said Nguyen Tri Hieu, a renowned economist. Robert Tran from Robenny said if the government strives to protect national brands, it needs to lay down clear policies to encourage Vietnamese investors to buy shares. Nguyen Tuan Quynh, an investment expert, said the government should discuss with enterprises which shareholders would be suitable. Vietnamese enterprises are not the buyers which offer the highest prices, but they are business owners that can help enterprises develop and protect national brands.

Related News

Vietnam-China e-commerce: A perspective from Lang Son border

Vietnam-China e-commerce: A perspective from Lang Son border

VCN - Cross-border e-commerce is currently a hot topic among e-commerce businesses, particularly those actively developing digital platforms and cross-border electronic payment infrastructures through border gates in Lang Son province.
Promoting Vietnam-Laos Customs cooperation

Promoting Vietnam-Laos Customs cooperation

VCN - On November 19, 2024, in Hanoi, Vietnam Customs held the Vietnam - Laos Customs Directors General Conference.
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
U.S. Treasury continues to affirm Vietnam does not manipulate currency

U.S. Treasury continues to affirm Vietnam does not manipulate currency

VCN - In its latest report, the U.S. Department of the Treasury has positively assessed Vietnam's monetary policy, reaffirming that Vietnam does not engage in currency manipulation.

Latest News

Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.

More News

Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Will textile and garment exports be affected by Trump 2.0 policy?

Will textile and garment exports be affected by Trump 2.0 policy?

VCN - That was one of the topics of interest at the press conference of the Vietnam Textile and Apparel Association (VITAS) held on November 19.
Vietnam, US strengthen supply chain cooperation in global marketplace

Vietnam, US strengthen supply chain cooperation in global marketplace

The 2024 Vietnam-US Cooperation Forum, held in Ho Chi Minh City, focused on new US policy directions and opportunities to enhance bilateral economic and trade relations.
Over 218,500 enterprises established, resume operations in 11 months

Over 218,500 enterprises established, resume operations in 11 months

More than 218,500 enterprises were established and resumed operations in Vietnam in the past 11 months of 2024, a year-on-year increase of 7.4%, according to the General Statistics Office (GSO).
Textile and garment exports optimistic thanks to market opportunities

Textile and garment exports optimistic thanks to market opportunities

VCN - The diversification strategy and the shift in orders from brands have brought positive results to the Vietnamese textile and garment industry in 2024 and created a solid foundation for the 2025 target.
Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Total registered foreign direct investment (FDI) into Vietnam, including new and additional investments, and capital contributions via share purchases, reached 31.4 billion USD in the first 11 months of 2024.
Rice exports to set record of 9 million tonnes this year

Rice exports to set record of 9 million tonnes this year

Rice exports are likely to hit a record high of 9 million tonnes in 2024, given a total volume of nearly 8.5 million tonnes shipped abroad in the first 11 months, according to insiders.
Three goals, seven tasks for the logistics industry to accelerate

Three goals, seven tasks for the logistics industry to accelerate

VCN - Speaking at the Vietnam Logistics Forum 2024, Prime Minister Pham Minh Chinh pointed out 3 goals and 7 groups of tasks for the logistics industry to accelerate development in the new situation.
Several key commodities surge in Asian and African markets

Several key commodities surge in Asian and African markets

VCN - Many of Vietnam's key commodities hold significant potential for growth in the Asian and African markets.
Read More

Your care

Latest Most read
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year.
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN - Mr. Le Xuan Thinh - Director of Vietnam Cleaner Production Center (VNCPC) said that textiles, garments and footwear have now deeply participated in the global value chain, textile products have been exported to more than 100 markets.
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - Vietnam's e-commerce has seen an average growth rate of 22-25% over the past three years. Cross-border e-commerce has grown correspondingly, perhaps at a slightly higher rate than domestic e-commerce.
Mobile Version