Strengthening Intellectual Property Protection in Vietnam

The Importance of Intellectual Property (IP)

Intellectual property protection is gaining significant traction in Vietnam as businesses strive to stay competitive and foster innovation in a rapidly changing global marketplace. This recognition is echoed by experts and industry leaders who emphasize the need for robust legal frameworks to encourage growth while safeguarding creations.

Current State of IP in Vietnam

According to Võ Tân Thành, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), the country boasts over 700,000 registered trademarks. However, widespread IP violations undermine these efforts, highlighting critical gaps in Vietnam’s protective measures. Despite historical advantages such as abundant resources and inexpensive labor, these factors alone are insufficient for long-term success.

Gaps in Legal Frameworks

Recent discussions in Ho Chi Minh City revealed that Vietnam’s growth model needs to pivot towards innovation-driven strategies. While resolutions like 57-NQ/TW and 68-NQ/TW underscore the importance of innovation, Thành notes that an urgent need exists to enhance the legal foundation for IP protection.

Over the past decade, Vietnam has made strides in refining its IP rights framework, particularly by adopting international standards through participation in the World Trade Organization and various free trade agreements, such as the CPTPP and EVFTA. Yet, Thành points out that significant loopholes persist, enabling rampant counterfeiting and IP violations.

Statistics on IP Infringement

Statistics from the Intellectual Property Office of Vietnam paint a concerning picture. In 2024, the country recorded more than 2,000 IP infringement cases, with counterfeit and pirated products worth hundreds of billions of đồng. The first half of 2025 saw over 3,270 cases, causing extensive damage to brands and consumer trust.

These violations impact small businesses and major brands alike, with both facing significant challenges from counterfeit goods. International studies suggest that Vietnam’s rate of IP violations remains troublingly high compared to its regional counterparts, potentially harming the nation’s reputation and its economic prospects.

Misconceptions About Trademark Protection

Lawyer Mai Thị Thảo highlighted a prevailing misconception among companies: the belief that mere trademark registration guarantees legal protection. In reality, numerous infringement cases illustrate the system’s limitations. Without a flexible appraisal mechanism and a specialized IP court, even established national brands can suffer.

Thảo emphasized the importance of a parallel legal strategy alongside brand promotion. “Brand protection is vital protection,” she stated, suggesting that businesses need to supplement marketing efforts with rigorous legal safeguards.

Combatting Counterfeiting

Concerns about counterfeit goods prominently emerged during discussions, especially from Lê Thị Đông Phương, deputy director of Khanh Hoa Salanganes Nest Soft Drink JSC. She noted the proliferation of fake products, often at lower prices, which not only distorts market perceptions but also endangers consumer health, particularly in rural areas where accurate information may be scarce.

In response, the company has implemented various anti-counterfeiting measures, including QR codes for product tracing and exclusive packaging for online sales. Collaboration with local authorities is also part of the strategy to dismantle illegal production networks. Despite these efforts, consumer complaints about counterfeit products remain unresolved, which exacerbates the challenge.

Call for Enhanced Legal Measures

Phương advocates for more stringent measures against IP violations, urging authorities to bolster the legal framework with clearer regulations and harsher penalties. Additionally, she calls for greater oversight, particularly concerning the growing digital marketplace. This includes developing technologies to verify seller legitimacy on e-commerce platforms and employing AI to detect counterfeit items more effectively.

Moreover, there is a pressing need to establish national product standards to protect consumers and support legitimate businesses.

Challenges for Different Market Players

As Bông Hoa Việt from Binh Minh Plastics JSC pointed out, the lack of a clear legal framework poses substantial obstacles, particularly for small and medium-sized enterprises. Established companies like hers can struggle against counterfeiting; new startups may find it even more daunting.

There’s a consensus on the necessity for a dedicated Intellectual Property Court staffed with specialized judges to navigate these complex cases. Clear standards for assessing non-material damages, particularly related to brand reputation, are also essential since the fallout can exceed mere financial losses.

This multifaceted discussion reveals a critical moment for Vietnam as it strives to enhance intellectual property protections, ensuring that the innovative spirit of its businesses can thrive in an increasingly competitive global economy.