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SONG DA 5 JOINT STOCK COMPANY
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Song Da 5 JSC: Selling equity, not brand

Friday, 24/08/2018 14:20

(Kinhdoanhnet)- The world’s high Dam association 2016 was held solemnly in National Convention Centre in Laos PDR. We had a trip around advertising booths that are used of for construction of hydropower, water resource projects and large or small dams in the world herein organized.


The perspective view of 18T2 Building in An Khanh urban Area.

We were surprised and also proud that there was one booth displaying logo and introduction pictures of Song Da 5 JSC of Vietnam in the exhibition. Song Da 5 JSC is among some enterprises in Vietnam attending this exhibition with role of the member of the world Large Dam Association. In the booth of Song Da 5 JSC, there are a lot introduction materials about Hydropower machinery and equipment which are manufactured by international brand such as LIEBHER of Germany, POTAIN of France, etc. The leaders of Song Da 5 are discussing with such partners about the plan of cooperation and investing construction equipment to foreign projects. Song Da 5 becomes a prestigious Brand name in Hydro power construction in Laos PDR.

In the animated atmosphere of this international exchange, one Lao Guest suddenly looked at the logo and asked: “Excuse me; Song Da 505 is a member of Song Da 5, isn’t it?

We are Journalists from Vietnam attending this conference feel suspicious whether his question has any implication. Observing the behavior of Song Da 5 leaders who are exchanging with guests, something a bit down in their face with a half doubt and a little difficult understanding.

The signal reminds delegates of coming back conference. We left the meeting to follow this Laotian guest. In our discussion, this guest studied oversea in Moscow told that: Song Da 505 Company did promotion works and became a subcontractor here. At that time, 505 enterprises was not a prestigious and qualified contractor, even lacking of contractor’s culture. As we know, Song Da 5 is the holding company of Song Da 505 why Song Da 5 has international criteria and role as an international Contractor but Song Da 505 is not qualified enough. Does the same company have two criteria?

Perspective view of 18T2 Building in An Khanh Urban that was executed by Song Da 5 JSC

Coming to the headquarter of Song Da 5 to look for the truth, we are aware that at present Song Da 505 and Song Da 5 has no any relation. Because, the management Board of Song Da 5 withdrew all equity at Song Da 505. From that time, Song Da 505 has no right to use any relation about business and organization as well as the brand of Song Da 5 SJC. However, up to now Song Da 505 has still using brand name of Song Da, and named Song Da 505 JSC as a subsidiary of Song Da 5 like the past. As a result, even many domestic employers and general contractor still thinks mistakenly that Song Da 505 belongs to Song Da 5. For example, 2 years ago, While Song Da 505 was executing Da Dang Hydro power plant (Lam Dong Province), the incident of tunnel collapse happened which led to the problem that 8 workers were under the tunnel during several days. All the country worried about the living of these workers. The Party and Government called for the support of military force so save these victims. From that incident, the name of Song Da 505 really makes troubles, and influence to the brand of Song Da 5.

It is very popular in Vietnam that Enterprises withdraw equity but do not request the name change and no allowance for using the trademark in case of no equity holding. The enterprises haven’t paid much attention to the legal policies and monopoly protection as a result of the existence of opportunity benefits from the prestigious trademark or risks of a weak brand in the markets. Trademark building is a costly and long path in which the determination of any enterprise – is bread and butter – Jobs, therefore itself elimination of trademark or being used ambiguously by other enterprises in a moment may lead to unintended consequences.

Song Da 505 has been separated from Song Da 5 for over 5 years but they have been using this prestigious trademark in the market, especially, now Song Da 5 JSC is executing a foreign project assigned by Japanese Corporation. Only two issues stated herein that are the lack of culture of Song Da 505, the irresponsible construction which led to serious consequences while keeping the trademark of Song Da is unacceptable! Song Da 5 JSC would like to inform domestic and foreign organization and enterprises for the awareness of this matter.

Mai Le Nguyen