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Economics

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Collective brands contribute to brand name protection

Binh Duong province has identified brand name plays an important role in the economy, including collective brands. Thus, in recent years, the province has developed collective brand names to preserve and develop characteristic products of Binh Duong. At the same time, collective brand names have generated profits for members of collectives in the province.

Since the establishment of collective brand names, many products of Binh Duong have been appreciated by consumers and elevated its positions on domestic and international markets. In photo: Tuong Binh Hiep lacquer products are exported to many countries in Asia, Europe and the United States.

To protect brand names

Nguyen Thuy Minh Chi, Chairman of Thuan An Town Farmer's Association - the unit that manages and exploits collective brand name Lai Thieu Mangosteen, said that Management and Control Board of collective brand name Lai Thieu Mangosteen had appraised and allowed 18 households to use the stamp of this brand name. Since the recognition of brand name, Lai Thieu mangosteen has had fewer competitors in terms of price. In addition, the growers have gradually become aware of the need for joining together and forming clubs or groups to have the same production process for even quality of fruit trees in order to supply high-quality fruits, stable and reputable output.

According to Le Ba Linh, Vice Chairman of Binh Duong Lacquer - Sculpture Association - the management unit of Binh Duong Lacquer Bank, collective brand name is an effective way to ensure competitive advantage for businessmen. Therefore, collective brand name not only supports organizations and businesses in introducing its common products to domestic and foreign markets, but also creates the foundation for cooperation between producers inside and outside country.

"Since the appearance of collective brand name of North Tan Uyen orange and pomelo, our products are more well-known and have a legal basis for export", said Doan Minh Chien, owner of Doan Minh Chien farm (North Tan Uyen).

According to Le Tan Cuong, Deputy Director of Department of Science and Technology, brand evaluation plays an important role in the market economy. The economy with many goods and services of many different business entities so that consumers could recognize names and select exactly and quickly products they need, thus the naming of products is really necessary. The development of collective brand names is one of measures to prevent and combat infringement of intellectual property rights, to protect the legitimate rights and interests of holders, consumers and society, creating a competitive advantage on the market, especially in the current integration period.

Bringing high economic efficiency

It can be seen that, after being granted a certificate, many Binh Duong brand names are proved in terms of quality as well as origin. Thereby, it has significantly increased economic income of members exploiting collective brand names in the province.

Mr. Linh said, collective brand names can also be used together with private labels of producers for certain products. This helps producers and business entities to distinguish their own products from those of other competitors, while simultaneously benefiting from consumers' trust in the products and services of collective brand names. Currently, many Binh Duong lacquer products are favored by many countries, accounting for a high proportion in the total value of exported fine art products.

Nguyen Van Tan, Farmers' Association Chairman of Bach Dang commune, Tan Uyen town, said that collective brand names contributed to protecting interests of its members. In case of being a characteristic product of a locality, it contributes to preserving the tradition of the locality, creating favorable conditions for people and businesses to develop their production, improve product value, thereby contributing to improving community life. Previously, when there was no their own packaging, labeling, on average, 10 pomelos of Bach Dang commune were sold for VND300,000 - 350,000. However, after having collective brand name, the price increases by VND400,000 - 450,000.

According to expert’s assessment, in addition to economic profits when being protected, the maintaining of collective brand name is also a problem not only to owners but also to agencies and industries. Because a collective brand name is used for all farmers with binding responsibility to other individuals, businesses, this would lead to an abuse of the brand name, causing bad consequences.

Mr. Cuong also recommended, development of collective brand name was difficult but the brand management and enhancement is much more difficult. Therefore, in order to ensure the reputation of recognized collective brand names, only members, who meet prescribed standards, are entitled to exploit the brand. Thus, products would ensure quality, are trusted by consumers, bring profits, and develop more sustainably.

Reported by Khanh Dang – Translated by Ngoc Huynh

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