The past decades have seen many Asian countries embrace market capitalism and open their economies to foreign participation and influence. There has been a considerable increase in the number of global companies setting up shops in Asia. With exotic locales, unique cultures and sun-kissed beaches, tourism has become one of the booming industries in Asia. Recently, the active promotion of high quality and affordable health care and a renewed focus on developing a world class education system, has developed health and edu-tourism.

As many Asian countries are able to boast of one or more of the above attractions, the need to differentiate and brand themselves to attract capital and people is rapidly gaining importance.

Countries create distinct identities in the minds of potential tourists, businesses travellers, traders, importers and consumers. As the number of tourist arrivals and business travellers continues to increase in the world, countries must increase their share of the pie by building strong top-of-mind awareness. Recall of the destination should be instant when they try to plan a holiday or the venue for the next company-wide conference.

Overall, country branding can be divided into three main categories by the purpose they serve:

• Export branding
• Generic country branding
• Internal country branding

Although one of the obvious reasons countries brand is to sway tourists (and their dollars) away from other, often neighbouring, countries, the more important reason is to create a positive image which local products, when exported, can be associated with and can gain instant cache from. Selling Italian shoes and German engineering is much easier than selling Australian shoes and Czech engineering. Branding can also serve a purpose in the global marketplace through attracting investments and skilled workers.

Internally, governments can use their new brand identity to channel development and boost public morale. For many decades, due to Asia's relatively lower level of social and economic development the products and services emerging from the Asian region did not enjoy a very positive country-of-origin effect. Studies done in the 1970s portrayed a dire picture for Asian companies.

But now, with new branded identities to rely on, they can fight entrenched beliefs not only in their home countries but outside as well.