State-owned enterprises after equitization: is the brand legacy heavy or valuable?

After the signing of the privatization agreement, many new leadership teams face the question almost immediately: is this logo still appropriate? The red color, the star, the four-letter abbreviation of the old parent company, all still remain. On signage, on uniforms, in the minds of thousands of long-time customers. A wrong decision at this stage can erase the trust that the organization has accumulated over decades. Not deciding is also a choice, and it comes with its own cost.

Brand legacy: asset or burden?

State-owned enterprises, while still operating in the public sector, often build a specific type of trust: stability, longevity, and state backing. For some customer segments, especially institutional clients, traditional partners, and older consumers, this is a real asset. Familiar names, instantly recognizable colors, a history without major scandals, all contribute to accumulated brand equity.

But at the same time, the bureaucratic, slow, and less dynamic image also clings to that identity as an inseparable part. The service model of "customers need us, not the other way around" is the same. When the competitive environment changes after privatization, the accumulated assets and liabilities coexist within the same identity system.

Privatization does not automatically reposition the brand. It only changes the ownership structure. External customers do not read the shareholders' meeting resolutions. They look at the signage, visit the website, call customer service, and perceive the organization through each of those touchpoints. If everything remains the same, the brand in their minds does not change.

Diagnosis before taking action

Before hiring a design studio, it is necessary to inventory each brand asset and measure the actual level of attachment. Jenni Romaniuk, a researcher at the Ehrenberg-Bass Institute, measures brand assets across two axes: Fame (the level of popularity among the customer base) and Uniqueness (the level of exclusivity associated with this brand, not confused with competitors). Assets with high Fame and high Uniqueness should be retained at all costs. Assets with high Fame but low Uniqueness need to be reassessed in terms of usage. This is the case when many people remember but confuse it with competitors or even the entire industry.

For state-owned enterprises, the specific question to answer before making any decisions is:

• Long-term customers recognize the brand through which elements: name, color, shape, or a combination of all three?
• Which identity elements are associated with clearly measurable negative perceptions, not just internal feelings?
• Has the target market changed after privatization? If the new customer segment is completely different from the old one, the identity challenge is entirely different.
• Who are the new competitors, and where does the current identity system position the company in relation to them?

A brand is not just a logo. A brand is the perception in the hearts of customers about a product, service, or organization.

Marty Neumeier, The Brand Gap

The points that need to be handled with the utmost care

There are three specific areas for this group of companies that any rebranding decision must take into account.

First is the name. Abbreviated names like those of the parent company, such as "VNPT", "EVN", "Vietcombank", are often deeply embedded in market memory. Changing the name is a decision with enormous communication costs and the risk of losing identity during the transition phase. Most successful cases choose to retain the name or slightly adjust the spelling, rather than changing it entirely.

Secondly, there is color. Red, dark blue, and yellow are commonly used in the identity of Vietnam's state sector and not by chance: they convey signals of authority and stability. However, if the new positioning aims for dynamism, creativity, or international markets, the old color palette may send the wrong signals. The solution is not to discard everything but to adjust the shades and usage ratios. Additional accent colors can be added to expand the emotional range without severing the old identity.

Thirdly, there are symbols and icons. The star, the map, the gear, the rice ear are images that carry state symbolism. They are often very difficult to separate from political or public sector associations. If the post-privatization direction is to compete entirely in a market-driven manner, retaining these symbols may send ambiguous signals to investors and private partners.

Brand architecture after equitization

Many corporations after privatization do not only have one brand to manage. They also have a system of subsidiaries, affiliated units, and ancillary services with different names and identities. David Aaker describes the brand architecture spectrum from "branded house" (a parent brand covering everything) to "house of brands" (each product or service is an independent brand). There is no one-size-fits-all formula. However, the phase immediately after privatization is often not the time to build a complex architecture. The priority is to clarify the parent brand first.

Wally Olins, who designed rebrands for many large corporations undergoing structural changes, believes that a brand is the sum of four vectors: product, environment, communication, and behavior. For companies just privatized, the behavior vector is often the slowest to change and also where customers perceive the most. A new logo, new colors can be launched within a few months. But if employees still operate under the old culture, the market will recognize that contradiction sooner than any launch communication.

Change roadmap by phase

Successful rebranding for this group of companies often does not happen in one go. A controlled phased approach is a way to maintain old trust while building a new identity.

Phase one is diagnosis and strategic orientation: interviewing long-term customers, measuring attachment to each identity element, clarifying the new positioning and priority customer segments. This phase does not produce design deliverables, only a decision map.

Phase two is updating the core identity system: logo, colors, typography, in an evolutionary direction rather than a break, unless phase one data clearly indicates a need for a break. Launch internally first, gather feedback, and adjust before going public.

Phase three is implementing the system and building behavior: the guidelines must be actively used, not left in a drawer. Train employees. Update all customer touchpoints with the brand, according to a prioritized schedule.