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| Lawyer Pham Duy Khuong, Managing Partner of ASL LAW |
The draft law revising a number of articles of the Law on Intellectual Property (the draft law) introduces a policy group aimed at supporting the creation and commercial exploitation of intellectual property (IP) rights. From a practical standpoint, how feasible are these measures? Does the current legal system provide adequate mechanisms for the valuation, mortgage and transfer of IP rights?
The proposed policies supporting the creation and commercialization of IP rights are moving in the right direction, reflecting Vietnam’s determination to make intellectual property a key driver of economic growth. However, to ensure feasibility, the country must further improve legal mechanisms for IP valuation, mortgage and transfer - areas that still lack unified guidelines and a clear legal foundation.
Currently, although there have been IP valuation regulations, the absence of common standards makes it difficult to determine the value of IP assets in transactions or when used as collateral. Likewise, though the mortgage and transfer of IP rights are legally permissible, procedural inconsistencies between the IP registration authority and the secured transaction agency still exist, posing potential legal risks for businesses.
Drawing from international experience, particularly China, a country with a rapidly developing technology commercialization ecosystem, several practical lessons can be learned.
First, the State should consider establishing a “mixed ownership” mechanism, allowing IP ownership to be shared between research institutions and enterprises based on actual contributions, thereby encouraging both research and commercialization.
Second, it is necessary to develop IP transaction infrastructure, including technology exchanges and independent valuation centers, to enhance transparency and confidence in IP transfer and capitalization.
Third, public-private financial support funds should be created. In China, for example, national-level funds assist enterprises in accessing and commercializing publicly funded research, sharing risks, and fostering market cooperation.
Fourth, research data should be recognized and commercialized, thus opening new opportunities in the digital economy.
To make Vietnam’s policies truly effective, state authorities should issue detailed guidelines on IP valuation, registration of secured transactions, and IP asset management; establish a national database and open information system for commercializable IP assets; and encourage private organizations, investment funds and valuation entities to participate in the IP asset market.
Only when these foundational elements are in place, can IP rights truly become transferrable, mortgageable and capitalizable assets, thereby driving innovation and sustainable economic growth.
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| Packaging cordyceps mushroom products at Tam Dao Mushroom Cooperative before distribution to the market__Photo: Hoang Hung/VNA |
One of the draft law’s focal points is simplifying and digitalizing IP registration and protection procedures. From your viewpoint, what are the common challenges enterprises face in patent, trademark and design registration? Will the shift to post-licensing inspection and online processing reduce administrative burden and improve efficiency?
Simplifying and digitalizing IP registration procedures become an inevitable trend, consistent with the Vietnamese Government’s administrative reform and national digital transformation agenda. However, in practice, businesses continue to face significant challenges in three main areas: prolonged examination periods, inconsistent application assessments, and limited accessibility to searchable online databases.
For patents and industrial designs, the main issue lies in inadequate technical descriptions, often requiring multiple revisions. For trademarks, many businesses struggle with distinctiveness criteria or partial similarity with pre-existing marks, resulting in delays and additional costs.
Transitioning to a post-licensing inspection and online processing mechanism could substantially reduce administrative burden and give businesses more control over submissions and tracking. Nevertheless, success depends on an open, secure and stable digital infrastructure as well as a well-trained, consistent professional workforce. Once these conditions are met, the IP registration process will become more transparent, efficient and competitive for Vietnamese enterprises.
As Vietnam deepens its integration through next-generation FTAs such as CPTPP and EVFTA, the amendments to the IP Law are expected to help domestic enterprises better protect and exploit IP rights abroad. What recommendations would you make to ensure national laws remain compatible with international commitments while avoiding excessive procedural burdens for businesses?
Amending the IP Law in line with high-standard FTAs like the CPTPP and EVFTA is essential to maintain consistency and strengthen protection for Vietnamese enterprises abroad. The key challenge lies in balancing compliance with international obligations while maintaining national legal flexibility to avoid additional procedural or financial burdens.
From a practitioner’s perspective, Vietnam should focus on three priorities:
(i) Selectively internalizing international commitments to ensure both economic suitability and business adaptability;
(ii) Strengthening mechanisms that support Vietnamese enterprises in registering, protecting and enforcing IP rights overseas through legal assistance funds, a network of IP representatives, and international cooperation; and,
(iii) Simplifying domestic administrative procedures to make IP registration and exploitation more accessible.
If implemented comprehensively, these solutions will ensure compliance with international integration requirements while helping build a dynamic and transparent IP ecosystem that empowers Vietnamese enterprises in the global market.
In your opinion, how will the improvement of Vietnam’s IP legal framework impact the foreign investment environment? What should be done to enhance Vietnam’s attractiveness and ensure legal safety for investors?
Improving the IP legal framework has a profound impact on the foreign investment environment, as it directly reflects the level of transparency, stability, and protection of investors’ legitimate rights in Vietnam.
When the rules governing IP establishment, transfer and enforcement become clearer, more consistent and predictable, foreign enterprises will gain greater confidence in expanding R&D activities, technology transfers, and IP commercialization in the country.
From our extensive experience advising multinational corporations, investors are concerned not only with the written law but also with the enforcement capability of IP protection. Their main concerns include slow enforcement against infringements, causing financial and reputational losses; inconsistencies among registration, enforcement and judicial bodies; and insufficient protection of trade secrets, which discourages technology transfer.
To enhance attractiveness and legal security for investors, several measures should be taken. These include reforming administrative procedures for IP registration and transfer, prioritizing digitalization, simplification and faster processing; increasing judicial transparency and predictability, especially in IP infringement litigation, to ensure swift and effective protection; establishing early warning and fast-track enforcement mechanisms for investors in hi-tech sectors to promptly prevent violations; developing alternative dispute resolution mechanisms, such as IP-specific arbitration and mediation, to ease the judicial workload and increase procedural flexibility; and strengthening international cooperation, especially in recognizing and enforcing foreign arbitral awards and bilateral IP protection agreements, to build investor confidence from developed economies.
With these coordinated adjustments, I am confident that Vietnam’s IP legal framework will become a solid foundation for attracting high-quality FDI in the coming years.-
[1] ASL Law is one of Vietnam’s leading law firms specialized in intellectual property, technology transfer and business consulting.
