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Branding the main concern for Vietnamese banks
Branding is a top priority for Vietnam’s commercial banks, to achieve a sustainable competitive advantage, particularly when the financial and banking market is developing strongly, said an official.
Deputy Governor of the State Bank of Vietnam (SBV), Nguyen Dong Tien, delivered this message at a seminar, entitled “Trademarks for the Vietnamese banking-financial industry 2009,” jointly held in Hanoi on May 14 by SBV and the Bac Ha Group.
Leading experts, both domestic and foreign, agreed that brand names play a decisive role in the survival and development of banks. They pointed out that local banks need an appropriate strategy to build up their trademarks to distinguish themselves from others to become widely recognised, especially overseas.
The participants, including those from branding consultancy companies, discussed a wide range of issues such as applying market research in the banking industry, communications, strategies for building up trademarks, and ways of maintaining the reputation of trademarks during the global economic downturn.
The Banking Strategy Institute reported that Vietnam’s banking sector has developed rapidly in recent years and now includes six state-owned commercial banks, six joint venture banks, 38 joint-stock commercial banks and 47 branches of foreign banks.
The extent of development of the banking industry has been demonstrated through the growth of all total assets, loans, capital mobilisation and products. From initially only providing loans, domestic banks now supply hundreds of products and services, giving clients numerous advantages.
A number of major banks have successfully built up their own trademarks by changing their logos and introducing operational targets and various schemes, giving customers a far larger choice of services. The Bank for Foreign Trade of Vietnam (Vietcombank), for example, is renowned for it’s tried and tested international payment services as well as its state of the art payment system.
The Vietnam Bank for Agriculture and Rural Development (Agribank) is the country’s largest commercial bank in terms of operational coverage as it has reached out to all rural areas to support farmers.
Meanwhile, the Bank for Investment and Development of Vietnam (BIDV) has a strong brand name based on its investments in infrastructure projects and the Vietnam Bank for Industry and Trade (VietinBank) is well-known thanks to its funding the industrial sector.
However, many financial experts noted that Vietnam’s banking system has yet to formulate its own respected trademarks, as no banks have really created enough trust amongst the public and the business community.
To promote their trademarks, Nguyen Kim Thanh, from the Banking Strategy Institute, suggested that domestic banks should diversify their products, develop banking services, change business structures and improve staff training, along with ensuring a steady and sustainable business growth.
vietnamplus
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