As a rapidly rising economy in Southeast Asia, Vietnam is attracting more and more foreign investors. With the booming economy, Vietnam’s intellectual property legal system is also constantly improving and developing. For companies planning to do business in Vietnam or have already entered the Vietnamese market, it is crucial to have a deep understanding of Vietnam’s intellectual property legal system. A sound intellectual property protection system can not only protect innovative achievements, but also promote technology transfer and economic growth, providing solid legal protection for the sustainable development of enterprises in Vietnam.
However, although both Vietnam and China are socialist countries, there are still many differences in the two countries’ intellectual property legal systems. These differences involve many aspects such as legal framework, scope of protection, application procedures, and enforcement mechanisms. For companies familiar with China’s intellectual property laws, it is particularly important to understand and grasp these differences. This can not only help companies better formulate intellectual property strategies, but also avoid potential legal risks due to legal cognitive bias.
This article will deeply analyze the characteristics of Vietnam’s intellectual property legal system and highlight its main differences from Chinese law. Through comparative analysis, we aim to provide companies with a clear cognitive framework to help them more effectively protect and use their intellectual property assets in the Vietnamese market. Whether it is patents, trademarks, copyrights or trade secrets, understanding these key differences will provide invaluable guidance for companies to expand their business and protect their rights in Vietnam.
Overview of Vietnam’s Intellectual Property Legal System
Vietnam’s IP legal system is a complex and comprehensive framework designed to protect innovation and creative achievements. At the core of this system is the Intellectual Property Law, which was first promulgated in 2005 and significantly revised in 2009 and 2019. This law comprehensively covers patents, trademarks, copyrights and other forms of IP protection. At the same time, the Civil Code also plays a complementary role in IP protection, especially in terms of contract and tort liability.
In terms of administrative agencies, Vietnam has adopted a decentralized management model. The Ministry of Science and Technology bears the main responsibility for formulating intellectual property policies and regulations, while specific implementation is the responsibility of different specialized agencies. Among them, the Industrial Property Office (IP Vietnam) is responsible for the registration and protection of patents, trademarks and industrial designs. The Copyright Office is specifically responsible for the management of copyright and related rights. This division of labor helps each agency to play its professional advantages in its respective fields, but it also brings challenges in coordination and unified enforcement.
Vietnam actively participates in the international intellectual property protection system and is a member of many important international treaties. The most representative of these is the World Trade Organization’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement). When Vietnam joined the WTO in 2007, it committed to abide by the TRIPS Agreement, which marked a significant improvement in the country’s intellectual property protection level. In addition, Vietnam is also a member of several international conventions such as the Paris Convention for the Protection of Industrial Property and the Berne Convention for the Protection of Literary and Artistic Works. These international commitments not only improve the internationalization of Vietnam’s intellectual property protection, but also provide important guarantees for foreign right holders to seek protection in Vietnam.
It is worth noting that Vietnam has continued to improve its intellectual property legal system in recent years to cope with the challenges brought by the digital economy and new technologies. For example, in the field of e-commerce, Vietnam is strengthening the protection of intellectual property rights in the online environment. At the same time, Vietnam is also actively exploring how to balance the relationship between intellectual property protection and technological innovation to promote the sustainable development of its economy.
In general, although Vietnam’s intellectual property legal system is relatively young, it is developing and improving rapidly. For enterprises interested in doing business in the Vietnamese market, a deep understanding of the characteristics and latest developments of this system will help better protect their intellectual property interests and gain a competitive advantage in Vietnam’s business environment.
Comparison of Patent Laws
Although the patent laws of Vietnam and China have similarities, there are some important differences in the specific details. Understanding these differences is crucial for companies to apply for and protect patents in Vietnam.
First, in terms of protection types, Vietnam’s patent law mainly covers invention patents and industrial designs. Unlike China, Vietnam does not set up utility model patents, but adopts a “small patent” system. This “small patent” is similar to China’s utility model patent, but it differs in examination standards and protection period. Vietnam’s small patent examination is more stringent, but the protection period is shorter, usually 10 years.
In terms of application process, the patent application procedures in Vietnam and China are generally similar, including application, formal examination, substantive examination and authorization announcement. However, the patent application examination cycle in Vietnam is usually longer than that in China. In China, the examination cycle for invention patents is an average of 2-3 years, while in Vietnam, this cycle may be extended to 4-5 years or even longer. This means that companies need to have longer-term planning and patience when applying for patents in Vietnam.
In terms of protection period, the protection period of invention patents in Vietnam is 20 years from the date of application, which is the same as in China. However, the protection period of industrial design patents in Vietnam is 5 years, which can be renewed twice, each for 5 years, with a maximum protection period of 15 years. In contrast, the protection period of design patents in China is 15 years from the date of application.
It is worth noting that Vietnam’s “petty patent” system is significantly different from China’s utility model patent. Vietnam’s petty patents need to undergo substantive examination, and the examination standards are slightly lower than those of invention patents, but higher than those of China’s utility model patents. The protection period of petty patents is 10 years and cannot be renewed. This system provides a way to protect technical solutions that are not innovative enough to apply for invention patents but are higher than the general utility model level.
In addition, the language requirements for patent applications in Vietnam are also worth paying attention to. Although applications can be submitted in English, a Vietnamese translation must be provided in the end. This may increase application costs and time, and companies should take this factor into account when planning patent applications.
In general, although Vietnam’s patent law system has similarities with China, there are obvious differences in specific implementation and details. When applying for patents in Vietnam, companies need to fully understand these differences and formulate appropriate intellectual property strategies to ensure that their technological innovations are effectively protected.
Comparison of Trademark Laws
Although the trademark laws of Vietnam and China are similar, there are several important differences in the details. Understanding these differences is crucial for companies to protect their brand rights in the Vietnamese market.
In terms of registration types and conditions, both Vietnam and China protect words, graphics, letters, numbers, color combinations and their combinations as trademarks. However, Vietnam’s protection of non-traditional trademarks such as sound trademarks is relatively lagging behind. It is worth noting that Vietnam has high requirements for the distinctiveness of trademark registration, and purely descriptive marks are usually difficult to obtain registration.
In terms of application procedures, both Vietnam and China adopt the basic process of application-examination-publication-registration. However, the trademark examination period in Vietnam is usually shorter than that in China. Generally speaking, it takes about 12-18 months from application to obtaining a registration certificate, while China may take 18-24 months. This feature enables companies to obtain trademark protection more quickly in the Vietnamese market.
Regarding the protection period and renewal, the two countries have very similar regulations. The validity period of a Vietnamese trademark is 10 years, calculated from the date of application, the same as in China. Both countries allow unlimited renewals of trademarks, with each renewal providing a 10-year protection period. However, Vietnam has more relaxed time requirements for renewal applications, which can be filed within 12 months before the expiration of the validity period, and there is still a 6-month grace period if the renewal is overdue.
The most noteworthy difference is the difference between the two countries in terms of trademark protection principles and special trademark treatment. Vietnam, like China, adopts the “first-to-file principle”, which means that the first trademark to be registered enjoys priority. However, Vietnam has stronger protection for well-known trademarks, and well-known trademarks may be protected even if they are not registered in Vietnam. This provides additional legal protection for international brands.
Another significant difference is the higher efficiency of trademark registration in Vietnam. In addition to the shorter overall review period, Vietnam also provides a fast-track review channel, which allows certain trademarks to be registered within 6-9 months. This feature enables companies to establish their brand position in the Vietnamese market more quickly.
In summary, although there are many similarities between Vietnam and China’s trademark laws, Vietnam’s characteristics in terms of examination efficiency and protection of well-known trademarks provide companies with unique opportunities and challenges. When companies are planning trademarks in Vietnam, they should make full use of these characteristics and formulate targeted registration and protection strategies.
Comparison of Copyright Laws
Although the copyright laws of Vietnam and China have similarities, there are some important differences in the details. First, in terms of the scope of protection, both countries cover traditional fields such as literary, artistic, and scientific works, as well as modern creations such as computer software and databases. However, Vietnam is more explicit in protecting folk literature and art, which reflects its emphasis on local cultural heritage.
In terms of the way of obtaining rights, both countries follow the principle of automatic protection, that is, once a work is created, it is protected by copyright without any formalities. However, it is worth noting that Vietnam’s copyright registration system is voluntary, which is similar to the situation in China. But in Vietnam, after completing the copyright registration, the copyright owner will be in a more advantageous position when defending his rights, because the registration certificate can serve as preliminary evidence of copyright ownership. This is particularly important for Chinese companies operating in the Vietnamese market. It is recommended to take the initiative to register copyright when conditions permit.
Regarding the term of protection, both countries provide for a general term of protection of the author’s lifetime plus 50 years after his death. However, there are differences in the term of protection for certain special types of works. The most notable example is the protection of computer programs: Vietnam provides for a term of protection of 50 years after first publication, while China provides for a term of protection of the author’s lifetime plus 50 years after his death. This means that in Vietnam, some earlier software works may enter the public domain more quickly. For companies that rely on software products, this difference may affect their long-term intellectual property strategies.
In addition, Vietnam’s copyright law has some unique features. For example, Vietnam’s provisions on the ownership of rights for works created for employment are more flexible, allowing the statutory ownership of rights to be changed through contractual agreements. This provides greater room for negotiation on the allocation of rights between employers and employees. Another point worth noting is that Vietnam’s supervision of copyright collective management organizations is relatively loose, which may affect the efficiency of collecting and distributing copyright royalties.
In general, although the copyright laws of Vietnam and China are similar in basic framework, there are still significant differences in specific implementation and some detailed provisions. For Chinese companies planning to do business in Vietnam, especially those that rely on creative content and software development, it is crucial to have a deep understanding of these differences and adjust their intellectual property strategies accordingly. It is recommended that when entering the Vietnamese market, consider hiring a local intellectual property expert to ensure that the characteristics of Vietnamese copyright law are fully utilized to maximize the protection of their own interests.
Comparison of Trade Secret Protection
There are some significant differences between Vietnam and China in terms of trade secret protection, which are particularly important for Chinese companies operating in Vietnam. First, in terms of definition and scope, Vietnam’s definition of trade secrets is relatively broad. According to Vietnam’s intellectual property law, trade secrets refer to information obtained through financial or intellectual input, which is not disclosed and can bring economic benefits to its holder. This definition is basically consistent with the provisions in Chinese law, but in specific applications, the Vietnamese courts’ standards for identifying trade secrets are often not as strict as those in China.
In terms of protection measures, Vietnamese law requires trade secret holders to take “necessary measures” to protect their confidentiality. However, compared with China, the specific requirements of Vietnamese law for these “necessary measures” are vague. Chinese law clearly lists specific measures such as signing confidentiality agreements and setting access rights, while Vietnamese law lacks such detailed guidance. This makes companies face greater uncertainty when protecting trade secrets in Vietnam.
Regarding infringement determination, Vietnamese law stipulates that any unauthorized acquisition, use or disclosure of another person’s trade secrets constitutes infringement. However, in practice, Vietnamese courts are relatively inexperienced in handling trade secret infringement cases, resulting in low predictability of judgment results. In contrast, China has more extensive judicial practice in the protection of trade secrets in recent years, and has formed a relatively mature infringement determination standard.
It is worth noting that Vietnam’s protection of trade secrets is relatively weak, which is one of the most significant differences between the two countries in this area. Although Vietnamese law recognizes trade secrets as a type of intellectual property, in actual law enforcement, the protection of trade secrets is often not as good as other types of intellectual property such as patents and trademarks. This is in stark contrast to China, which has continuously strengthened the protection of trade secrets in recent years, including increasing compensation amounts and increasing criminal penalties.
Another important difference is that Vietnam lacks systematic laws and regulations on the protection of trade secrets. Although trade secret protection is covered in Vietnam’s Intellectual Property Law, the relevant provisions are relatively scattered and not detailed enough. In contrast, China not only has special provisions for the protection of trade secrets in the Anti-Unfair Competition Law, but also has issued relevant judicial interpretations and guiding opinions, forming a relatively complete legal system. This systematic difference makes companies face more challenges in protecting trade secrets in Vietnam.
In summary, although Vietnam and China have similarities in the basic principles of trade secret protection, there are still significant differences in specific implementation and protection. Chinese companies operating in Vietnam need to fully recognize these differences and take more proactive measures to protect their trade secrets, such as establishing a stricter internal confidentiality system, carefully selecting business partners, and seeking professional legal advice when necessary.
Comparison of Intellectual Property Law Enforcement Mechanisms
There are significant differences between Vietnam and China in the enforcement mechanisms of intellectual property rights, which are mainly reflected in administrative enforcement, judicial protection and border control measures. Understanding these differences is crucial for companies to protect their intellectual property rights in Vietnam.
In terms of administrative enforcement, Vietnam’s system is relatively decentralized, involving multiple government departments. The Ministry of Science and Technology, the Ministry of Culture, Sports and Tourism, the Ministry of Agriculture and Rural Development, etc. are all authorized to handle intellectual property infringement cases. This decentralized enforcement system often leads to low efficiency and difficulty in coordination. In contrast, China’s administrative enforcement system is relatively centralized, mainly responsible for specialized agencies such as the National Intellectual Property Administration and the Copyright Bureau, and has high enforcement efficiency.
In terms of judicial protection, Vietnamese courts have relatively limited experience in handling intellectual property cases. Intellectual property cases are usually heard by ordinary civil courts, and there is a lack of specialized intellectual property courts. This may lead to increased uncertainty in the judgment results and longer trial periods. China has established a relatively complete system of specialized intellectual property courts, including multi-level specialized courts such as the Intellectual Property Court of the Supreme People’s Court, which can handle intellectual property disputes more professionally and efficiently.
In terms of border control measures, the General Department of Vietnam Customs is responsible for border law enforcement related to intellectual property protection. However, due to resource constraints and lack of experience, the effect of border control is often not as good as expected. China Customs has more experience in intellectual property protection and a more complete law enforcement system, which can more effectively prevent the import and export of infringing goods at the border.
It is worth noting that Vietnam’s intellectual property law enforcement system is relatively inefficient, mainly due to insufficient coordination between agencies and a shortage of professional talent. In complex intellectual property cases, the enforcement process can take a long time and the results are not satisfactory. In contrast, China has vigorously promoted intellectual property protection in recent years, and the efficiency and professionalism of law enforcement have been significantly improved.
In addition, Vietnamese courts are relatively inexperienced in hearing IP cases. Due to the lack of specialized IP judges and relevant precedents, courts may face challenges in handling highly technical patent disputes or complex trademark infringement cases. This situation may increase the uncertainty of the judgment results and may also affect the enthusiasm of right holders to seek judicial relief.
In general, although Vietnam is working hard to improve its intellectual property law enforcement system, there is still a clear gap compared with China. When operating in Vietnam, companies need to be fully aware of these differences, develop more proactive intellectual property protection strategies, and seek the assistance of professional legal advisors when necessary to ensure that their rights and interests are effectively protected.
Recent Legal Development Trends
In recent years, both Vietnam and China have shown positive development trends in the field of intellectual property protection, but with slightly different focuses. Vietnam is strengthening intellectual property protection in the digital environment, especially in improving relevant e-commerce regulations. In 2022, Vietnam revised the Intellectual Property Law, adding provisions for digital platforms and online infringements, clarifying the responsibilities of network service providers, and simplifying the procedures for removing infringing content online. In addition, Vietnam is also actively promoting intellectual property protection in the field of e-commerce, including strengthening the crackdown on the sale of counterfeit goods online and improving the regulatory mechanism for the use of online trademarks. These measures are aimed at building a more sound legal framework for intellectual property protection in the digital economy era.
In contrast, the recent development trend of China’s intellectual property law is mainly reflected in strengthening patent protection and increasing punitive damages. The Patent Law revised in 2020 introduced a patent open licensing system, extended the protection period of design patents, and significantly increased the amount of compensation for intentional infringement of patent rights. In 2021, the Supreme People’s Court issued the “Several Provisions on the Application of Laws in the Trial of Patent Dispute Cases”, which further refined the standards for determining patent infringement and the method of calculating compensation. In addition, China is constantly improving its trade secret protection system and increasing its crackdown on malicious infringements. These measures reflect that China is building a more stringent and deterrent intellectual property protection system, aiming to provide stronger legal protection for innovative development.
These development trends reflect the determination of both countries to adapt to the new technological environment and improve the level of intellectual property protection. For Chinese companies doing business in Vietnam, it is crucial to understand and adapt to these legal changes. They should pay attention to Vietnam’s new regulations in the digital field and learn from China’s experience in strengthening intellectual property protection, so as to better protect their own intellectual property rights in the Vietnamese market.
Actual impact and suggestions for enterprises
When doing business in Vietnam, it is crucial for companies to understand and adapt to the local intellectual property legal system. The following are some practical suggestions and strategies to help companies better protect and use intellectual property in Vietnam.
1. Strategic adjustment for applying for intellectual property protection in Vietnam
Before entering the Vietnamese market, companies should conduct a comprehensive review and assessment of their intellectual property rights. Considering the differences between Vietnamese and Chinese intellectual property laws, companies need to adjust their protection strategies. First, since Vietnam does not have utility model patents, companies should consider applying for invention patents or petty patents in Vietnam for technical solutions that may be applied for utility models in China.
Secondly, given Vietnam’s long patent examination cycle, companies should start the application process as early as possible to ensure protection during the critical period of market development. Furthermore, companies should make full use of Vietnam’s special protection policy for well-known trademarks. For important brands, they can consider applying for recognition as well-known trademarks to obtain wider protection.
2. Special considerations and common pitfalls
When protecting intellectual property rights in Vietnam, companies need to pay attention to several key points. First, Vietnam’s trademark registration adopts a strict first-to-file principle. Companies should submit trademark registration applications for their brands in Vietnam as soon as possible to avoid being preempted by others.
Secondly, although copyright registration in Vietnam is voluntary, considering its advantages in protecting rights, enterprises should take the initiative to register copyrights for important works. Furthermore, since Vietnam’s protection of trade secrets is relatively weak, enterprises need to adopt more stringent internal management measures to protect core confidential information. Finally, enterprises should be wary of counterfeit and shoddy products, actively monitor the market, and promptly discover and crack down on infringements.
3. How to more effectively protect and use intellectual property rights in Vietnam
In order to better protect and use intellectual property rights in the Vietnamese market, enterprises can take the following measures: First, establish a sound intellectual property management system, conduct regular intellectual property audits, and promptly identify and protect new innovations. Second, establish long-term cooperative relations with local intellectual property agencies and take advantage of their expertise and local resources.
Secondly, actively participate in the activities of industry associations and chambers of commerce, share experiences with other companies, and jointly cope with intellectual property challenges. In addition, companies should establish an early warning mechanism for intellectual property infringement, regularly monitor the market, and take legal action immediately once infringement is discovered. Finally, companies can consider realizing the commercial value of intellectual property while protecting their own rights and interests through intellectual property licensing or technology transfer.
After an in-depth study of the intellectual property legal systems of Vietnam and China, we can clearly see that there are significant differences between the two countries in this area. Although Vietnam’s intellectual property protection system is constantly improving, it still lags behind China. The most prominent differences are reflected in the patent system, trademark registration process, copyright protection, and legal protection of trade secrets.
Vietnam does not set up utility model patents, but adopts a “small patent” system, which has an important impact on the formulation of corporate patent strategies. In terms of trademarks, Vietnam’s registration period is usually short, but the identification and protection of well-known trademarks need to be further strengthened. Although copyright protection can be obtained without registration, the protection period in Vietnam is generally shorter than that in China. In addition, Vietnam’s legal system for trade secret protection and intellectual property law enforcement is not yet sound, which brings certain challenges to the protection of corporate rights and interests.
Understanding these differences is crucial for companies to successfully operate in the Vietnamese market. Companies need to adjust their IP protection strategies according to Vietnam’s legal environment. This includes not only applying for corresponding IP protection in Vietnam in a timely manner, but also considering how to effectively respond to possible infringements. At the same time, companies should also pay close attention to the latest development trends in Vietnam’s IP laws so as to adjust their strategies in a timely manner.
In general, although Vietnam’s intellectual property protection system has yet to be improved, with its rapid economic development and increasing internationalization, the Vietnamese government is actively improving the intellectual property protection environment. For Chinese companies interested in doing business in Vietnam, fully understanding the legal differences between the two countries and formulating a suitable intellectual property strategy will become one of the key factors for success in the Vietnamese market.
