Vietnam: The reason behind the lack of businesses’ IP protection mechanism
In the past years, the NOIP of Vietnam has constantly encouraged businesses to expand their IP protection mechanism in foreign markets, not just the domestic market. Specifically, according to the NOIP, Vietnam businesses should invest more in the registration of their intellectual property assets, including trademarks, patents, etc. in foreign markets where their products are exported to secure protection overseas.
Establish protection in foreign markets is the first step in the expansion of any business. Then, after a robust, sturdy foundation and strong IP protection mechanism, at that moment should businesses conduct their plan of expansion. Achieving that will help Vietnamese companies to build their brands in foreign markets and don’t have to fear about some others businesses steal/violate/infringe upon their rights.
However, it should be noted that even if businesses don’t have plans to expand in foreign markets, they should at least establish some kind of IP protection mechanism in their potential target markets.
The reason behind the lack in Vietnam businesses’ IP protection strategy
There are many reasons behind the lack of Vietnam businesses’ IP protection strategy. However, most of the cases can be sum up in 2 main reasons:
Lack a strategic and proactive regional and international IP plan
There have been many instances where Vietnamese businesses suffered from their lack of investment into IP protection in the foreign market, such as the Trung Nguyen Coffee, Ben Tre coconut candy, and Phu Quoc fish sauce cases, etc., and most recently, the ST25 rice dispute.
Through decades of examples, we should expect that the Vietnamese businesses have learned their lesson by now. However, that doesn’t seem to be the case. In reality, Vietnamese businesses are still kinda reactive in protecting their IP assets abroad. This means that they only take action when there is a real risk of losing their assets to a third party in a foreign market. Nonetheless, that would normally be too late already.
The core reason behind this phenomenon is because Vietnamese businesses still consider IP rights as a tool, not a right. Accordingly, they haven’t truly recognized the importance of IP rights and haven’t taken an interest in developing IP policies or managing IP assets.
The differences in legislation among foreign markets
The differences in legislation among foreign markets may pose an obstacle to Vietnamese businesses. Specifically, each country has its own set of rules and laws, IP law included. Accordingly, Vietnam’s IP law may not be transferred and applied in the businesses’ target markets.
For example, Vietnam is a country that follows the first-to-file rule but New Zealand, the United States follow the first-to-use rule. Consequently, Vietnam businesses will find the expansion to these countries very troublesome.
In order to solve this problem, Vietnam businesses in particular and all businesses, in general, should consult a renowned IP firm to help with any IP-related difficulties they may encounter during their market expansion.
Expert opinions
Tran Kieu Hoa, Of counsel at Baker McKenzie in Hanoi, said: “Because businesses rely on their reputation to attract new customers and grow their business, a strong brand can be one of their most valuable assets. Branding is therefore critical for any business venture entering foreign markets with different cultures, demands, and rules. Formally establishing IP rights in a foreign market can be the first step in entering a new market.”
She also emphasized that branding is not limited to large corporations alone. Even small and medium-sized companies (SMEs) should engage in branding not just locally, but internationally. First, to avoid the loss of resources investing in the wrong assets, businesses should determine the IP rights associated with their brand – whether patents, copyrights, trademarks, design, etc. Next, they should establish robust IP protection that ensures that these assets are properly protected in Vietnam and any potential foreign market.
Tran added: “We have observed that Vietnamese businesses, particularly large enterprises, are aware of the benefits of IP protection. However, compared to national applications for IP protection, the number of applications for IP protection in foreign markets remains limited.”
*** Other Articles***
– You could visit here to see the Trademark Registration in Vietnam.
– You can also check the Vietnam Trademark Law: Detailed Guide And Legal Notes.
– You could check Questions of filing trademark in Vietnam: POA, Trademark requirement and trademark fee in Vietnam.
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