While the world’s top 100 nation brands lose US$13.1 trillion of value in 2020 amid the Covid-19 crisis, Vietnam has defied global trend with its brand value skyrocketing 29% year-on-year to $319 billion.
|Vietnam is the fastest-growing nation brand in this year’s ranking. Photo: Le Viet.|
“The country is the fastest-growing nation brand in this year’s ranking,” noted the London-based independent brand valuation and strategy consultancy Brand Finance in its latest report.
Vietnam moved up nine ranks to 33rd with $319 billion in the world’s top 100 nation brands from its previous 42nd in 2019, up 29% year-on-year in value or $72 billion.
According to Brand Finance, 2020 has put the nations of the world to the test – from the economic impacts of COVID-19 on nations’ GDP forecasts, inflation rates, and general economic uncertainty, to diminished long term prospects.
“The downward trend of nearly all the world’s most valuable nation brands is unsurprising given the year we are currently experiencing,” said David Haigh, CEO, Brand Finance.
“With Covid-19 contributing to the recent rise of protectionism, we may see a reversal of the economic growth brought about by globalization,” he noted.
In this context, “Vietnam, which has recorded staggeringly low Covid-19 cases and deaths, has emerged as one of the top locations within the Southeast Asian region for manufacturing, and has become an increasingly attractive destination for investors - particularly from the US - that are looking to relocate their China operations following the fallout from the US-China trade war,” stated the report, adding recent trade deals with the EU [EVFTA] is supporting the growth of the nation further.
The country is also ranked at 57th on perceptions of having a ‘Strong and Stable economy’, but has a modest score on several other Soft Power measures.
Brand Finance’s report suggested soft power can help Vietnam seize opportunities that have emerged from super powers’ trade war and the current global investment capital shift out of China due to the Covid-19 pandemic.
“If Vietnam is able to build on its soft power, its successes in society, economy, and governance can have a far greater reach and create ripple effects for the nation the same way the soft power superpowers currently enjoy,” Brand Finance asserted.
Brand Finance’s top 10 most valuable nation brands contract 14% on average. The US claims the top spot at $23.7 trillion, but China continues to close gap with its value at $18.8 trillion. Japan stays in the third position as it emerges relatively unscathed from pandemic, the report suggested.