Coconut milk has similar packaging. The reason for such a recurrence is that Decree 12/1999/CP of the Government on administrative handling of industrial property violations is too outdated compared to the huge profits of unfair competition or counterfeiting. Another part is that these types of acts are difficult for management agencies to detect. For example, in this case with 519 boxes of candy (50 packages/box) and 15,600 unused packages of Thu Do Company, the company only had to destroy all the packages and was only fined 12 million VND for administrative violations. The fine is too light and not enough of a deterrent. So what to use?
make sure they don't do it again (15) .
To build a brand name, a business not only spends money and human resources but also time, sometimes years, sometimes decades, even hundreds of years. Therefore, protecting the brand from external infringement is essential. However, in addition to constantly being vigilant against imitating or "robbing" the brand of other businesses,
(15) http://www.haihaco.com.vn/5/1/2005
In order to develop a business, there needs to be a complete legal system and a more strict and thorough state sanction mechanism for violations. Only then can we hope to reduce the number of lawsuits and disputes related to trademarks and trademark protection as it is today.
CHAPTER III
SOME SOLUTIONS TO PROMOTE BRAND BUILDING AND DEVELOPMENT OF HAI HA CONFECTIONERY JOINT STOCK COMPANY
A brand is an intangible asset but contains a tangible power, when it determines the customer's choice for a product or service, it even affects the success or failure of business activities. However, not every business or company can have a famous brand. And building and developing the brand "Hai Ha Confectionery" to become a famous brand is not a job that can be done overnight and cannot follow a simple path that applies the same to all confectionery production facilities, but it requires a process of investment, selection and implementation of strategies. In addition, the issue of brand protection also needs to be given due attention. Protection is not simply a matter of registering for protection with a State agency but also a process of self-motivated creativity to maintain one's image as well as always being vigilant against any acts of infringement of the "brand" outside. Within the limited framework of this graduation thesis, I would like to boldly propose some solutions to improve the construction and development of the brand for Hai Ha Confectionery Joint Stock Company in the coming period.
1.MACROSSOLUTION GROUP
1.1 Completing legal documents and regulations related to trademarks, and the issue of brand building and protection
1.1.1 The State needs to have specific and clear regulations on trademarks.
Currently, Vietnamese enterprises still lack information and knowledge about brands. Most enterprises understand the need to build and develop brands, but few enterprises understand and answer where to start building a brand and what the true content of a brand is?! From here, we can draw a general conclusion that enterprises are still very confused.
are confused when it comes to understanding brands and especially do not know what to do specifically to build and develop brands for their products, especially in foreign markets. One of the main reasons for this situation is that although legal documents on intellectual property in general and industrial property in particular have been issued for a long time, the content of these documents is still not specific and clear in many places, and the consistency of content between different documents is not high. This has led to limitations in the implementation of these documents. Currently, in Vietnamese legal documents, there is no term "brand" but only the term "trademark", so businesses often think that a brand is a trademark. Therefore, businesses often equate the work of building and promoting a brand with registering for trademark protection.
Another legal problem in Vietnam is that we currently do not have specific regulations on the valuation of intangible assets (including brand value). This will cause many difficulties for businesses when equitizing and transferring brands. When valuing a business's assets, the regulations only focus on the valuation of tangible assets, while intangible assets are not given attention, or if they are, according to the guidance of the Ministry of Finance, they are calculated at no more than 30% of the capital contribution value (tangible value). The contradiction between regulations and practice has caused many difficulties for businesses when valuing and transferring their brands.
1.1.2 Simplify procedures and reduce time for trademark registration.
A pressing issue today is the improvement of the procedure for granting certificates of registration of goods. Most businesses are currently complaining a lot about the process and procedures for granting certificates of trademark registration. The search before registration sometimes takes up to 15-16 days. The registration procedure is complicated and slow: according to Article 6 of Decree 06/2001 ND-CP (dated February 1, 2001) amending a number of articles of Decree 63/1996 ND-CP (dated October 24, 1996), the paperwork and time for examining the form and content of a trademark is 15 label samples, and for industrial designs, it takes 3 months for examination of form and 9 months for examination of content. Thus, the waiting time for examination and issuance of certificates is too long (1 year), so it is not suitable for reality.
business today. During this time, when the product has been launched on the market, the risk of counterfeiting is very high and cannot be prevented. It is recommended that the State allow a reduction from 15 label samples to 10 label samples and the formal examination time is 45 days and the content examination is 6 months. Simplifying procedures and reducing the time for trademark registration is necessary so that businesses have the opportunity to promote their brands early and quickly receive the effectiveness of their brands.
1.1.3 The State needs to clearly stipulate penalties and sanctions for counterfeit and fake goods.
Although there are regulations on the protection of intellectual property objects, the guiding documents and the implementation of those regulations still have many limitations. In cases of intellectual property rights (IP) violations, our penalty framework is still too light, not enough to deter, leading to widespread violations that are difficult to control. Currently, the reality is that most disputes and IP violations are only resolved by administrative measures, only about a hundred violations are handled in criminal court, and very few disputes and violations are resolved in civil court. The reason for this reality is mainly due to the lack of specific regulations in civil proceedings related to IP, the collection of evidence is often difficult, and especially the lack of judges who understand IP. The Criminal Code also lacks specific provisions related to violations of intellectual property rights and counterfeiting, the question of which violations are serious enough to constitute a criminal offense is also an unanswered question at present, because the current legal framework in our country only imposes criminal liability on individuals and does not impose it on legal entities. In reality, the protection of intellectual property rights shows that the subjects of intellectual property rights infringement are mainly legal entities. This leads to the situation where intellectual property rights cannot be protected by criminal measures in cases where the subject of the infringement is a legal entity, regardless of how serious the consequences of the infringement are and how many times it is repeated... Therefore, administrative measures are often applied because of their speed, simplicity and low cost in terms of procedures, however, the deterrence and effectiveness of this measure are not high. Many businesses say
that the current administrative fine for trademark violations from 2 million to 100 million VND according to Decree 12/CP/1999/ND-CP is still too low and does not have much effect on preventing counterfeiting or trademark theft. In addition, a shortcoming of current regulations is that the violation is handled accordingly. Such handling is not thorough. For example, when a facility counterfeiting La Vie mineral water is discovered, it only has to destroy that type of packaging and still has the right to retain the water and can bottle it with other packaging... Meanwhile, counterfeiting not only causes material damage but can even kill a brand that a business has worked hard to build.
Therefore, the State needs to have higher and more severe penalties in this matter, such as the main penalty of imprisonment with a fine for violating intellectual property rights, in addition to additional penalties for the main penalty, which is the closure of the enterprise, confiscation of products and tools for counterfeiting, and announcements on the mass media. The crime is more serious when reoffending. In addition, accomplices and harborers are also subject to the same penalties as for counterfeiting.
Another problem in the issue of trademark protection is the lack of coordination among agencies that enforce trademark protection. Currently in Vietnam, there are many agencies participating in the enforcement of trademark protection, both the court system and the administrative enforcement system participate in the protection of intellectual property rights, the administrative enforcement system includes the following agencies: the National Office of Intellectual Property, the Market Management Department, the Science and Technology Inspectorate. Economic Police, Border Guards and Customs. However, no agency is primarily responsible for this issue. In addition, the coordination between departments and branches is not high, and there is no common database for this system, causing the authorities to spend a lot of time in implementing handling measures. Therefore, more and more Vietnamese enterprises are becoming victims of trademark theft and counterfeiting. For that reason, the State should also regulate a unified focal point for receiving and handling complaints about intellectual property in a one-stop manner, clearing the legal corridor for handling violations.
trademark infringement, contributing to increasing the efficiency of resolving infringement cases and reducing costs for businesses.
1.2 Financial support mechanism
The most difficult thing for many businesses today in building and protecting their brands is the limited capital and finance, which makes it impossible for businesses to carry out large-scale, long-term brand building and promotion programs.
Due to market trends, in order to meet the increasingly diverse needs as well as the increasingly demanding demands of consumers, products must always be diverse in design and model, services must always be improved, enhanced and continuously changed, so many times because the cost of registering for many new products, many unique ideas... is too high, many businesses have hesitated and sometimes even skipped the registration process.
Therefore, the State should have a long-term preferential loan policy for enterprises in the process of building a brand. Those policies should have conditions attached to avoid the loan capital being wasted and misused such as: the application for a protection certificate for a product or design is being reviewed and is likely to be accepted; the ability to maintain the image of the brand as assessed through investment in production and current product quality; explanation of the source of the loan capital later in the process of using the borrowed capital with confirmation from relevant agencies certifying that the loan capital has been used for activities to build, develop and protect the registered brand...
In short, in the current era of economic integration, the issue of branding is more important than ever. Therefore, the State should consider corporate brands as “national assets”, as the macro-interest of the country, and should soon issue new branding policies suitable for today’s economic integration trend.
2. MICRO SOLUTIONS GROUP
2.1 Business strategy orientation of Hai Ha Confectionery Joint Stock Company in the period 2006-2010
2.1.1 Development trends of the confectionery market
With a population of over 80 million people and an average population growth rate of 1.4% per year, Vietnam is forecasted to be a potential consumer market for food and beverages in general and confectionery in particular. Currently, the average consumption per person per year in our country is relatively low, only about 1.6 kg/person compared to the world average of 8 kg/person.
Table 15: Forecast of confectionery consumption demand in Vietnam in the period
2006- 2010
ST
T
Target | Unit | 2006 | 2007 | 2008 | 2009 | 2010 | |
1 | Population medium | million people | 84,447 | 85,672 | 86,879 | 88,078 | 89.29 4 |
2 | Total output consume | Thousand tons | 145 | 158 | 175 | 190 | 206 |
3 | Consumption level average | Kg/person | 1,717 | 1,844 | 2,014 | 2,157 | 2,307 |
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Source: Sales Department - BKHH Joint Stock Company
Average consumption (kg/person)
Figure 4: Average consumption of bread in Vietnam 2006-2010
2,500
2,000
1,500
1,000
500
0
2006 2007 2008 2009 2010
Along with the increase in demand, the consumer market for confectionery products also changes in the following directions:
In addition to valuing product quality, consumers are increasingly interested in packaging design and consider it an indispensable factor when choosing a product. This stems from the fact that as confectionery production technology becomes more advanced, the quality between brands is increasingly narrowed, along with the trend of using confectionery as gifts, so confectionery is more focused on design.
Instead of using chemical flavors in confectionery products as before, manufacturers tend to use more and more natural flavors in confectionery products such as: orange, lemon, grape, strawberry, apple... This is also a way to compete with alternative confectionery products such as fruits.
Consumers tend to choose confectionery products for dieters with low sweetness and reduced fat. Because the characteristics of traditional confectionery products are high sweetness and high fat, however, in a developed society when nutritional needs are fully met, consuming these confectionery products can affect their health and body shape.