This paper evaluates the effect of advertising on brand equity. The effect of advertising on brand equity will be approached in terms of two perspectives: perceived advertising spending (PAS) and perception of advertising (PA). Samples were assembled from 295 customers who own mobilephones on the market in Central Vietnam. Structural Equation Modeling (SEM) results indicate that: (1) perceived advertising spending has significant positive and direct effect on brand awareness, but it does not have direct significant influence on perceived quality and brand association; (2) perception of advertising has significant effects on brand awareness, perceived quality and brand association; (3) brand awareness, perceived quality and brand association have positive and direct effects on brand loyalty. Lastly, implications for entrepreneurs in the Central Vietnamese mobile phone market are discussed.