THE MINISTRY OF INDUSTRY AND TRADE | SOCIALIST REPUBLIC OF VIETNAM |
No. 33/2019/TT-BCT | Hanoi, November 22, 2019 |
CIRCULAR
PRESCRIBING CRITERIA OF VIETNAMESE NATIONAL BRAND PROGRAM
Pursuant to the Law on Foreign Trade Management dated June 12, 2017;
Pursuant to the Government’s Decree No. 98/2017/ND-CP dated August 18, 2017 on functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;
Pursuant to the Government’s Decree No. 28/2018/ND-CP dated March 01, 2018 elaborating the Law on Foreign Trade Management regarding some measures for foreign trade development;
Pursuant to the Prime Minister’s Decision No. 30/2019/QD-TTg dated October 08, 2019 development, management and implementation of the Vietnamese National Brand Program;
At the request of the Director General of the Vietnam Trade Promotion Agency;
The Minister of Industry and Trade hereby promulgates a Circular prescribing the criteria of the Vietnamese National Brand Program.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Circular provides for criteria of the Vietnamese National Brand Program (hereinafter referred to as “the Program”), including:
1. Criteria for development, appraisal and approval of schemes for implementation of the Program (“Program implementation schemes”).
2. Criteria for award of the “Vietnamese National Brand” title.
Article 2. Regulated entities
This Circular is applicable to units in charge of Program implementation schemes (hereinafter referred to as “units in charge”), the Program’s managing body and relevant bodies, organizations, enterprises and individuals.
Chapter II
CRITERIA OF VIETNAMESE NATIONAL BRAND PROGRAM
Section 1. CRITERIA FOR DEVELOPMENT, APPRAISAL AND APPROVAL OF PROGRAM IMPLEMENTATION SCHEMES
Article 3. Criteria for development of Program implementation schemes
1. The schemes must be developed in compliance with regulations in Clauses 1, 2 and 3 Article 16 of the Government’s Decree No. 28/2018/ND-CP dated March 01, 2018 elaborating the Law on Foreign Trade Management regarding some measures for foreign trade development.
2. The schemes must be formulated based on one of the following objectives:
a) Raising society’s awareness of the roles of brands in manufacture, business and investment;
b) Enhancement of brand development and management capacity of enterprises in order to meet the Program’s criteria;
c) Promotion of Vietnamese National Brands in connection with products awarded the “Vietnamese National Brand” title.
Article 4. Criteria for appraisal of Program implementation schemes
1. Criteria for appraisal of Program implementation schemes:
a) Criterion 1: Necessity;
b) Criterion 2: Objectives;
c) Criterion 3: Contents;
d) Criterion 4: Launch option;
dd) Criterion 5: Launch plan and schedule;
e) Criterion 6: Cost estimate;
g) Criterion 7: Capacity of unit in charge;
h) Criterion 8: Expected outcomes, expected risks and remedial measures.
2. The criteria stated in Clause 1 herein are elaborated in Appendix 1 enclosed therewith.
Article 5. Principles of appraisal and approval of Program implementation schemes
1. The schemes shall be marked based on a 100-point scale. The rubric for such marking is specified in Appendix I enclosed therewith.
2. A scheme eligible for consideration and approval must score at least 80 points, of which each criterion prescribed in Clause 1 Article 4 scores at least 60% of its allotted point.
3. Based on the Program’s annual budget estimate informed by the Ministry of Finance, the Minister of Industry and Trade shall decide to approve Program implementation schemes as appropriate to the allocated budget.
Section 2. CRITERIA FOR APPLICATION FOR AND AWARD OF “VIETNAMESE NATIONAL BRAND” TITLE
Article 6. Requirements for application for “Vietnamese National Brand” title
1. Requirements for a product applying for the “Vietnamese National Brand” title:
a) It is a product or goods of Vietnamese origin according to regulations of laws;
b) It is granted intellectual property protection in Vietnam.
2. Requirements for an applicant of the “Vietnamese National Brand” title
a) It is an enterprise established under Vietnamese law;
b) It holds the patent for the applying product;
c) It has operated for at least 02 consecutive years prior to the assessment year;
d) It complies with regulations of laws on manufacture, investment, trade, environmental protection, labor affairs, social responsibilities, financial liabilities, tax and other liabilities to the state budget.
Article 7. Criteria for award of “Vietnamese National Brand” title
1. Criteria for award of the “Vietnamese National Brand” title:
a) Criterion 1: Quality;
b) Criterion 2: Innovation;
c) Criterion 3: Pioneering spirit.
2. The criteria stated in Clause 1 herein are elaborated in Appendix 2 enclosed therewith.
Article 8. Principles of award of “Vietnamese National Brand” title
1. A product applying for the “Vietnamese National Brand” title shall be assessed based on a 1,000-point scale. The rubric for such assessment is specified in Appendix 2 enclosed therewith.
2. A product will be awarded the “Vietnamese National Brand” title if it scores at least 650 points and each criterion prescribed in Clause 1 Article 7 scores at least 60% of its allotted point.
Chapter III
IMPLEMENTATION
Article 9. Responsibilities of affiliates of the Ministry of Industry and Trade
1. The Vietnam Trade Promotion Agency, which is the unit in charge of managing and implementing the Program, has the following responsibilities:
a) Provide guidance for development of Program implementation schemes, receive, appraise and propose such schemes to the Minister for approval;
b) Calculate and incorporate total cost estimate for Program management and implementation into the cost estimate of the Ministry of Industry and Trade, and submit to the competent authority according to regulations of the Law on Budget;
c) Manage and spend the Program’s funding according to applicable financial regimes;
d) Sign contracts for performance of Program implementation schemes with units in charge and support funding under the concluded contracts; and directly launch the Program implementation schemes in charged by the Vietnam Trade Promotion Agency; Contents of such contracts are prescribed in Article 12 of the Government's Decree No. 28/2018/ND-CP;
dd) Receive and handle administrative procedures for award of the “Vietnamese National Brand” title according to regulations in Article 8 of the Regulation on development, management and implementation of Vietnamese National Brand Program enclosed with the Prime Minister’s Decision No. 30/2019/QD-TTg;
e) Submit annual compiled reports on the Program to the Prime Minister via the Ministry of Industry and Trade before December 20 every year;
g) Take charge and cooperate with relevant bodies in inspecting and supervising the performance of Program implementation schemes and compliance with the Program’s regulations of the Program’s participants;
h) Provide guidelines for this Circular, implement this Circular and inspect such implementation.
2. The Finance and Business Innovation Department shall cooperate with the Vietnam Trade Promotion Agency in calculating total cost estimate, and distributing and allocating funding for the Program according to regulations.
3. The Vietnam Directorate of Market Surveillance shall cooperate with the Vietnam Trade Promotion Agency in inspecting and supervising the implementation of this Circular according to regulations in the Prime Minister’s Decision No. 30/2019/QD-TTg.
4. Other affiliates of the Ministry of Industry and Trade shall cooperate with the Vietnam Trade Promotion Agency and units in charge in executing the Program efficiently.
Article 10. Responsibilities of units in charge and applicants for “Vietnamese National Brand” title
1. Units in charge shall compile demands of organizations, enterprises and industry associations to propose, formulate and cooperate in launching Program implementation schemes according to the criteria specified in this Circular and regulations in the Prime Minister’s Decision No. 30/2019/QD-TTg.
2. Applicants for the “Vietnamese National Brand” title shall implement the regulations in this Circular and in the Prime Minister’s Decision No. 30/2019/QD-TTg.
Article 11. Effect
1. This Circular takes effect from January 08, 2020.
2. During the implementation of this Circular, any problem or difficulty arising should be promptly reported to the Ministry of Industry and Trade for consideration and resolution./.
| THE MINISTER |
APPENDIX 1
CRITERIA FOR APPRAISAL OF SCHEMES FOR IMPLEMENTATION OF VIETNAM NATIONAL BRAND PROGRAM
(Enclosed with the Circular No. 33/2019/TT-BCT dated November 22, 2019)
No. | Criterion | Score | Total score |
1 | Criterion 1: Necessity |
| 10 |
| Prove that the scheme is necessary for: - A socio-economic development orientation or strategy, foreign trade strategy, or general export strategy for an industry and/or a market; or - Current state or demand in terms of capacity for development and protection of product brands of localities and enterprises; or - The annual or periodical orientation of the council for Vietnamese National Brand. | 10 |
|
2 | Criterion 2: Objective |
| 10 |
2.1 | General objectives Clarify the scheme’s role in accomplishing the following objectives: - Raising society’s awareness of the roles of branding in manufacture, business and investment; - Enhancement of brand development and management capacity of enterprises in order to meet the Program’s criteria; - Promotion of Vietnamese National Brands in connection with products awarded the “Vietnamese National Brand” title | 5 |
|
2.2 | Specific objectives: Identify detailed objectives of proposed activities | 5 |
|
3 | Criterion 3: Contents |
| 20 |
3.1 | The scheme describes in detail activities proposed according to regulations in Article 5 of the Regulation enclosed with the Prime Minister’s Decision No. 30/2019/QD-TTg | 15 |
|
3.2 | The scheme provides full information on time, location and scale of proposed activities | 5 |
|
4 | Criterion 4: Launch option |
| 10 |
| If the scheme is directly executed by the unit in charge, specify the contractors/partners selection method, cooperation rules and resource allocation plan employed in order to achieve the scheme’s objectives | 10 |
|
5 | Criterion 5: Launch plan and schedule |
| 10 |
| Launch plan and schedule for work items are suitable to the launch option | 10 |
|
6 | Criterion 6: Cost estimate |
| 15 |
| Cost estimate is fully calculated as regulated | 15 |
|
7 | Criterion 7: Capacity of unit in charge |
| 15 |
7.1 | Experience in carrying out proposed activities | 5 |
|
7.2 | Capacity for management, mobilization and cooperation of resources to carry out proposed activities | 10 |
|
8 | Criterion 8: Expected outcomes, expected risks and remedial measures |
| 10 |
8.1 | Outcomes, effects and sustainability of the scheme | 5 |
|
8.2 | Expected risks and remedial measures | 5 |
|
APPENDIX 2
CRITERIA OF “VIETNAMESE NATIONAL BRAND” TITLE
(Enclosed with the Circular No. 33/2019/TT-BCT dated November 22, 2019)
No. | Criterion | Basis of assessment | Maximum score | Total maximum score for each criterion |
1 | Criterion 1: Quality |
|
| 300 |
1.1 | Implementation and maintenance of ISO 9001 quality management system | Duration of implementation | 60 |
|
1.2 | Implementation and maintenance of advanced quality management system (ISO 14001, ISO 22000, ISO 17025, SA 8000, OHSAS 18001, HACCP, GMP, VietGap, Global Gap, etc. or equivalent) | Duration of implementation | 60 |
|
1.3 | Announcement of product quality according to regulations of laws | Availability of copies of acknowledgement of receipt of declaration of conformity and certificate of conformity or a copy of standards applied to the product, whose quality exceeds the applicable Vietnamese standard | 60 |
|
1.4 | Investment in quality maintenance | Investment rate is higher than the industry’s average; product’s quality is in leading position in terms of technical specifications and customer’s demand | 60 |
|
1.5 | Quality awards | Number of domestic and international quality awards | 60 |
|
2 | Criterion 2: Innovation |
|
| 180 |
2.1 | Incentive policy for innovation | Detailed incentive policy for innovation with public and transparent evaluation and recognition | 40 |
|
2.2 | New innovation or idea has been deployed in the enterprise for 2 consecutive years period to the assessment year | List of new ideas and achievements earned from application of such ideas, and detailed assessment of outcomes | 20 |
|
2.3 | Research and development (R&D) | Availability of a R&D unit and its specific roles and functions and achievements | 20 |
|
2.4 | Investment in (R&D) | Rate of investment in R&D is higher than that of other enterprises in the industry; full information on all R&D activities carried out for 2 consecutive years prior to assessment years | 20 |
|
2.5 | Training | Training contents meet requirements of workforce performance and development, and quantity of training courses | 20 |
|
2.6 | Intellectual property acquired from the product | Number of intellectual property under protection | 20 |
|
2.7 | Adoption of new technologies and solutions | Active search and adoption of new technologies and clean and eco-friendly technologies; impact of new technologies on cost reduction and outstanding increase of productivity compared to main competitors | 20 |
|
2.8 | Innovation awards |
| 20 |
|
3 | Criterion 3: Pioneering spirit |
|
| 520 |
3.1 | Enterprise vision | Enterprise vision is understandable, concise, practical and consistent with enterprise's strategy and core values | 20 |
|
3.2 | Enterprise’s core values | Contents are coherent and suitable to (1) customers, (2) industry's characteristics and (3) enterprise’s conditions, and to enterprise’s vision, strategy and core values | 20 |
|
3.3 | Enterprise’s business strategy | Contents are understandable, adequate and consistent with enterprise’s vision and core values | 20 |
|
3.4 | Human resource development plan | The plan has detailed objectives and comprehensive contents with transparent policies for reward, recognition and benefits | 20 |
|
3.5 | Awards granted to enterprise’s leader(s) |
| 20 |
|
3.6 | Brand vision | Brand vision is concise, understandable, practical and suitable to product brand positioning objectives and strategy | 20 |
|
3.7 | Brand promise | Brand promise is coherent and properly elaborated, showing long-term commitment to brand differentiation and honest success | 20 |
|
3.8 | Brand positioning | Clear and sound brand positioning strategy that is suitable to the target segment(s) and brand promise | 20 |
|
3.9 | Brand protection | Consistent and efficient protection of brand-related intellectual property; and adequate employment of brand protection tools | 20 |
|
3.10 | Internal branding | Communication is clear and consistent with (1) brand vision, (2) brand promise, (3) brand positioning statement; and communication tools are employed | 20 |
|
3.11 | External branding (Brand marketing and communications) | Communication is clear and consistent with (1) brand vision, (2) brand promise, (3) brand positioning statement; appropriate marketing and communication activities are carried out; there are grounds for selecting marketing and communication forms; and methods to measure performance of marketing and communication activities | 30 |
|
3.12 | Brand awareness | Consumer’s brand awareness | 100 |
|
3.13 | Credit ranking | According to rankings from the State Bank | 100 |
|
3.14 | Financial assessment | Percentage of product’s revenue to total revenue | 30 |
|
|
| Debt to total assets ratio | 10 |
|
|
| Debt to equity ratio | 10 |
|
|
| Long-term debt to equity ratio | 10 |
|
|
| Net profit margin | 10 |
|
|
| Return on assets | 10 |
|
|
| Return on equity | 10 |
|
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