The wages used to calculate social insurance (SI) contributions that employees and employers have to pay are quite low compared to their actual income.

This has occurred because many businesses split the employees’ income into various allowances and subsidies to reduce payments.

Nguyen Thu H has been working as a sales employee at a household goods manufacturing company for 15 years. In recent years, her actual monthly income has consistently been VND14–15 million, but her SI contribution is based on a salary of less than VND9 million.

Her SI contribution is calculated based on the official salary paid by the company, while additional income is listed as allowances and supplementary bonuses to “evade” SI contributions.

Under the current laws, employees have to pay an eight percent rate, while employers contribute 17.5 percent to the social insurance fund.

For H, despite her high income at work, her future pension will be low, because the SI contributions she pays now is low.

“In principle, high SI contributions will lead to high pensions. Therefore, I am afraid that my pension in the future won’t be high enough to live on,” she complained.

An officer from the HCMC Labor Federation said that except for state-owned enterprises and some private companies that pay SI based on workers’ actual incomes, most of the other businesses circumvent regulations by paying allowances, not salaries, to reduce the SI contributions they have to pay.

According to analysts, this is also one of the reasons why workers have preferred lump-sum social insurance withdrawal recently.

According to HCMC Social Insurance, current laws already specify which payments are subject to SI contributions and which are not, and the SI agency has intensified inspections over the payments. However, many businesses still deliberately seek to reduce contributions they have to pay.

In most cases, workers and employers only pay SI contributions based on the minimum wages set by the government annually (minimum wages are different for different regions).

In reality, at many units and businesses, numerous allowances and supplements are paid to workers beyond their base salary, under various names such as allowances and bonuses. Since the allowances and bonuses are not listed as ‘salary’, they are not counted when calculating SI contributions.

Meanwhile, the 2024 Social Insurance Law stipulates that the monthly wage used as the basis for mandatory SI contributions for workers are determined by employers, including salaries for their jobs or titles, wage allowances, and other regular, stable supplements agreed upon for each pay period. This makes it difficult to determine which payments must be included in SI contributions.

Pointing out that the base wage for SI contribution calculation is much lower than workers’ actual income, Vietnam Social Security (VSS) said many businesses do not fully comply with regulations. They tend to split workers’ income into various allowances and subsidies to avoid contributions, but VSS lacks the legal basis to force businesses to include these amounts.

As a result, in many places, workers’ SI contributions account for only 50–60 percent of their actual incomes, affecting their benefits, especially retirement pensions.

Stricter oversight 

A HCM City Labor Federation representative suggested that in order to have contributions truly reflect workers’ actual incomes, state management agencies need to strengthen inspections to ensure employers’ observation of the laws.

It is necessary to strictly control businesses’ payrolls to ensure that businesses don’t have dual payrolls (including a payroll to show to VSS, and a payroll with actual figures for businesses’ accountancy).

According to a labor expert, in the long term, data about workers’ wages must be linked to a data-sharing system between workers’ income records and the SI agency’s database to help verify workers’ actual income for SI contributions.

By cross-checking data for monthly incomes received by workers from businesses with their SI contribution payments, it will be possible to ensure accurate and sufficient SI collection from employers.

Additionally, workers themselves must recognize this as their legitimate right and ensure they contribute correctly and fully to the SI fund to safeguard their benefits.

At the press briefing on the afternoon of January 14, Do Ngoc Tho, Head of the Social Insurance Implementation Policy Department under VSS said that currently, there are nearly 3.4 million people nationwide receiving monthly pension and social insurance benefits.

By the end of December 2024, the average pension was VND7 million per month, including the armed forces. If we only considered the civilian sector, people’s pensions would be lower.

 

Vu Diep

NEWS ALERT: IP Vietnam Issues Notice No. 333/TB-SHTT on Handling of Applications.

The Law No. 07/2022/QH15 on amending and supplementing articles of the Law on Intellectual Property was enacted by the National Assembly on June 16, 2022 and became effective on January 1, 2023. However, guidelines for the amended law have not been issued, causing difficulties in establishing and protecting IP rights. To address this issue, IP Vietnam issued Notice No. 333/TB-SHTT on February 2, 2023, outlining the handling of applications.

For applications submitted before January 1, 2023, IP Vietnam will continue to process them using existing documents with some minor format modifications. However, for documents related to industrial design, patent, and trademark registration applications, some revisions are required based on the Law on Amendments and Supplements and related decrees and circulars.

For applications submitted from January 1, 2023, IP Vietnam has suspended the issuance of related documents pending review and modification of the document forms. This article will be updated as further guidance from IP Vietnam becomes available.

For further information and assistance, please contact ALIAT LEGAL via contact@aliat.group or dial 1900 5555 38.

The Madrid System for the International Registration of Marks is governed by two treaties:

  • the Madrid Agreement, concluded in 1891 and revised at Brussels (1900), Washington (1911), The Hague (1925), London (1934), Nice (1957) and Stockholm (1967), and amended in 1979, and
  • the Protocol relating to that Agreement, concluded in 1989, which aims to make the Madrid system more flexible and more compatible with the domestic legislation of certain countries or intergovernmental organizations that had not been able to accede to the Agreement.

States and organizations party to the Madrid system are collectively referred to as Contracting Parties.

The system makes it possible to protect a mark in a large number of countries by obtaining an international registration that has effect in each of the designated Contracting Parties.

Who May Use the System ?

An application for international registration (international application) may be filed only by a natural person or legal entity having a connection – through establishment, domicile or nationality – with a Contracting Party to the Agreement or the Protocol.

A mark may be the subject of an international application only if it has already been registered with the trademark office of the Contracting Party with which the applicant has the necessary connections (referred to as the office of origin). However, where all the designations are effected under the Protocol (see below), the international application may be based simply on an application for registration filed with the office of origin. An international application must be presented to the International Bureau of WIPO through the intermediary of the office of origin.

The International Application

An application for international registration must designate one or more Contracting Parties in which protection is sought. Further designations can be effected subsequently. A Contracting Party may be designated only if it is party to the same treaty as the Contracting Party whose office is the office of origin. The latter cannot itself be designated in the international application.

The designation of a given Contracting Party is made either under the Agreement or the Protocol, depending on which treaty is common to the Contracting Parties concerned. If both Contracting Parties are party to the Agreement and the Protocol, the designation will be governed by the Protocol.

International applications can be filed in English, French or Spanish, irrespective of which treaty or treaties govern the application, unless the office of origin restricts that choice to one or two of these languages.

The filing of an international application is subject to the payment of a basic fee (which is reduced to 10 per cent of the prescribed amount for international applications filed by applicants whose country of origin is an LDC, in accordance with the list established by the United Nations), a supplementary fee for each class of goods and/or services beyond the first three classes, and a complementary fee for each Contracting Party designated. However, a Contracting Party to the Protocol may declare that, when it is designated under the Protocol, the complementary fee is replaced by an individual fee, whose amount is determined by the Contracting Party concerned but may not be higher than the amount that would be payable for the registration of a mark, at the national level, with its office.

International Registration

Once the International Bureau receives an international application, it carries out an examination for compliance with the requirements of the Protocol and its Regulations. This examination is restricted to formalities, including the classification and comprehensibility of the list of goods and/or services. If there are no irregularities in the application, the International Bureau records the mark in the International Register, publishes the international registration in the WIPO Gazette of International Marks (hereinafter referred to as “the Gazette”), and notifies it to each designated Contracting Party. Any matter of substance, such as whether the mark qualifies for protection or whether it is in conflict with a mark registered previously in a particular Contracting Party, is determined by that Contracting Party’s trademark office under the applicable domestic legislation. The Gazette is available in electronic form (e-Gazette) on the Madrid system website.

Statement of Grant of Protection or Refusal of Protection

The office of each designated Contracting Party shall issue a statement of grant of protection under Rule 18ter of the Regulations.

However, when designated Contracting Parties examine the international registration for compliance with their domestic legislation, and if some substantive provisions are not complied with, they have the right to refuse protection in their territory. Any such refusal, including an indication of the grounds on which it is based, must be communicated to the International Bureau, normally within 12 months from the date of notification. However, a Contracting Party to the Protocol may declare that, when it is designated under the Protocol, this time limit is extended to 18 months. That Contracting Party may also declare that a refusal based on an opposition may be communicated to the International Bureau even after the 18-month time limit.

The refusal is communicated to the holder of the registration or the holder’s representative before the International Bureau, recorded in the International Register and published in the Gazette. The procedure subsequent to a refusal (such as an appeal or a review) is carried out directly by the competent administration and/or court of the Contracting Party concerned and the holder, without the involvement of the International Bureau. The final decision concerning the refusal must, however, be communicated to the International Bureau, which records and publishes it.

Effects of an International Registration

The effects of an international registration in each designated Contracting Party are, from the date of the international registration, the same as if the mark had been deposited directly with the office of that Contracting Party. If no refusal is issued within the applicable time limit, or if a refusal originally notified by a Contracting Party is subsequently withdrawn, the protection of the mark is, from the date of the international registration, the same as if it had been registered by the office of that Contracting Party.

An international registration is effective for 10 years. It may be renewed for further periods of 10 years on payment of the prescribed fees.

Protection may be limited with regard to some or all of the goods or services or may be renounced with regard to some only of the designated Contracting Parties. An international registration may be transferred in relation to all or some of the designated Contracting Parties and all or some of the goods or services indicated.

Advantages of the Madrid System

The Madrid system offers several advantages for trademark owners. Instead of filing a separate national application in each country of interest, in several different languages, in accordance with different national or regional procedural rules and regulations and paying several different (and often higher) fees, an international registration may be obtained by simply filing one application with the International Bureau (through the office of the home country), in one language (English, French or Spanish) and paying one set of fees.

Similar advantages exist for maintaining and renewing a registration. Likewise, if the international registration is assigned to a third party, or is otherwise changed, such as a change in name and/or address, this may be recorded with effect for all designated Contracting Parties by means of a single procedural step.

To facilitate the work of the users of the Madrid system, the International Bureau publishes a Guide to the International Registration of Marks under the Madrid Agreement and the Madrid Protocol.

The Madrid Agreement and Protocol are open to any State party to the Paris Convention for the Protection of Industrial Property (1883). The two treaties are parallel and independent, and States may adhere to either or both of them. In addition, an intergovernmental organization that maintains its own office for the registration of marks may become party to the Protocol. Instruments of ratification or accession must be deposited with the Director General of WIPO.

Sources:

Q 85: What are the steps that the right holders should take to enforce their IP rights in Vietnam?

Here are the general steps that IP right holders should take to enforce their IP rights in Vietnam:

  1. Monitor and identify potential infringement: IP right holders should regularly monitor the market to identify potential infringement of their IP rights. This can include conducting online searches, visiting trade shows, and engaging with customers and distributors.
  2. Gather evidence: If potential infringement is identified, IP right holders should gather evidence to support their claim. This can include photographs, product samples, and witness statements, as well as any relevant registration certificates or other documentation. For trademarks and industrial designs, it is advisable for the right holder to have an Assessment Conclusion from the Vietnam Intellectual Property Research Institute (VIPRI) to support their claim. An Assessment Conclusion is an official opinion provided by VIPRI and can be a powerful evidence in an infringement case. IP right holders may wish to consult with IP agents or law firms to obtain an Assessment Conclusion and other expert guidance and advice on gathering evidence and preparing their case.
  3. Evaluate legal options: IP right holders should evaluate their legal options, including civil and criminal actions, and consider the potential costs and benefits of each option. This may involve consulting with IP agents or law firms to obtain expert guidance and advice.
  4. Send a cease-and-desist letter: IP right holders may send a cease-and-desist letter (C&D letter) to the alleged infringer before initiating legal proceedings. The C&D letter should include a description of the IP right in question, evidence of the alleged infringement, and a clear demand to the alleged infringer to cease all infringing activities. Sending a C&D letter can sometimes resolve the issue without taking further legal actions, especially when the letter is sent by a law firm or IP agent.
  5. File a complaint or initiate legal proceedings: If the C&D letter is unsuccessful, or if the infringement is particularly egregious, IP right holders may choose to file a complaint with the relevant authorities or initiate legal proceedings in court. This may involve working with IP agents or law firms to ensure that the complaint or legal action is properly drafted and filed.
  6. Participate in legal proceedings: In this case, IP right holders should be prepared to participate in the legal proceedings and provide evidence to support their claim. This may involve working with IP agents or law firms to prepare witnesses and expert testimony, as well as presenting evidence to the court.
  7. Enforce any judgments or decisions: If the court finds in favor of the IP right holder, they should take steps to enforce any judgments or decisions. This may involve working with law enforcement agencies to seize infringing products or seeking damages or compensation from the infringer.

Overall, enforcing IP rights in Vietnam can be a complex and challenging process, but taking these steps can increase the chances of success and help to protect the right holder’s interests. It is advisable for IP right holders to seek expert guidance and advice from IP agents or law firms to ensure that they are taking the most effective and appropriate actions.

Q 86: What are the remedies available for IP infringement in Vietnam, and how effective are they?

The available remedies for IP infringement in Vietnam include civil, administrative, and criminal actions.

In civil cases, the court may order the infringer to stop the infringing activities, pay damages to the right holder, and issue a public apology. The damages may include compensation for the actual damages suffered by the right holder, such as lost profits and expenses incurred due to the infringement, or statutory damages, which are calculated based on the level of infringement and the value of the IP right.

In administrative cases, the authority may impose fines on the infringer, order the destruction of infringing goods, or suspend the infringing business activities.

In criminal cases, criminal penalties are only applied to certain types of IP infringement, such as the act of reproducing copyrighted works, sound recordings, or video recordings; distributing to the public copies of copyrighted works, sound recordings, or video recordings; producing and selling goods with counterfeit trademarks or false geographical indications.

The effectiveness of these remedies depends on various factors, including the strength of the evidence presented, the expertise of the lawyers involved, and the efficiency of the legal system. In recent years, the Vietnamese government has taken steps to improve the enforcement of IP rights, including establishing specialized IP courts and increasing penalties for IP infringement. However, some right holders still report challenges in obtaining effective remedies, such as delays in court proceedings and difficulties in enforcing court orders. It is advisable for IP right holders to seek expert guidance and advice from IP agents or law firms to maximize the chances of obtaining an effective remedy.

Q 87: How do IP rights holders gather evidence of infringement in Vietnam, and what are the legal requirements for presenting evidence in court?

IP right holders in Vietnam can gather evidence of infringement through various means, such as taking photographs or videos of infringing activities, collecting samples of infringing products, and interviewing witnesses. They can also request information from the relevant authorities, such as customs or market management agencies, to obtain information about shipments or sales of potentially infringing goods.

When presenting evidence in court, IP right holders must comply with the legal requirements set out in the Code of Civil Procedure. Evidence must be relevant, reliable, and obtained legally. It is important to note that the burden of proof lies with the plaintiff, and the court will only accept evidence that is presented in a proper and admissible manner.

To be admissible, evidence must be submitted in writing or in a format that can be recorded, such as audio or video recordings. Documentary evidence should be accompanied by an explanation of its origin and authenticity, and any translations should be certified by a competent authority or translator. Witnesses must be present in court to testify, and their statements must be consistent with other evidence and not contradicted by other facts in the case.

In addition to the above, it is important to note that IP right holders must comply with the legal requirements for gathering evidence in Vietnam. For example, they must respect the privacy rights of individuals and cannot engage in illegal or unethical activities, such as trespassing or hacking into computer systems. IP right holders should consult with a law firm or IP agent to ensure that they gather evidence in a legal and proper manner.

Q 88: What is the role of Vietnamese law enforcement agencies in IP enforcement, and how can IP right holders work with them to protect their IP rights?

In Vietnam, law enforcement agencies such as the police, customs, and market management agencies play a crucial role in IP enforcement. They are responsible for investigating and prosecuting IP infringement cases, as well as implementing measures to prevent the import, export, or sale of infringing goods.

IP right holders can work with these agencies to protect their IP rights by providing information about potential infringement, such as the location of infringing goods or the identity of suspected infringers. They can also request assistance from the authorities in conducting raids or seizures of infringing goods. In some cases, enforcement agencies may take proactive measures, such as conducting inspections of markets or ports to identify and seize infringing goods.

To work effectively with enforcement agencies, IP right holders should have a good understanding of the relevant laws and regulations, as well as the procedures for reporting and pursuing IP infringement cases. They should also have a clear strategy for protecting their IP rights and be prepared to provide evidence and other support to the authorities.

IP right holders can also work with a law firm or IP agent to navigate the complexities of IP enforcement in Vietnam and to ensure that their rights are properly protected. An experienced legal professional can provide advice on the legal options available, help to gather evidence of infringement, and represent the company in negotiations or legal proceedings with the authorities or infringers.

Q 89: What are the costs associated with pursuing an IP enforcement action in Vietnam, and how can IP right holders budget for these expenses?

The costs associated with pursuing an IP enforcement action in Vietnam can vary depending on a range of factors, including the complexity of the case, the type of IP right involved, and the level of legal representation required.

Some of the costs that IP right holders may incur in pursuing an IP enforcement action in Vietnam include:

  1. Legal fees: This can include fees for consulting with an IP agent or a law firm, as well as fees for drafting legal documents and representing the company in court.
  2. Costs for gathering infringement evidences: IP right holders may need to hire collaborators to gather evidence of infringement, which can include the costs of travel, surveillance equipment, and other expenses.
  3. Governmental fees: Fees associated with filing legal actions in court, such as filing fees, service fees, and other administrative costs.

To budget for these expenses, IP right holders should first consult with an IP agent or law firm to get an estimate of the likely costs involved in pursuing an IP enforcement action in Vietnam. They should also consider the potential benefits of enforcing their IP rights, such as increased revenue and market share, as well as the risks of not acting, such as damage to their brand and reputation.

Q 90: What are the risks and potential pitfalls of IP enforcement in Vietnam, and how can IP right holders minimize their exposure to legal and reputational harm?

Enforcing IP rights in Vietnam can be a complex and challenging process, and IP right holders should be aware of the potential risks and pitfalls before embarking on such actions. Some of the risks and potential pitfalls of IP enforcement in Vietnam include:

  1. Counterclaims: The alleged infringer may assert counterclaims against the IP right holder, such as claiming that the IP right is invalid or that the IP right holder is engaged in anti-competitive behavior.
  2. Time and expense: IP enforcement actions can be time-consuming and expensive, with no guarantee of success. IP right holders should carefully consider the costs and benefits of pursuing legal action and consider alternative dispute resolution methods.
  3. Reputation: Pursuing IP enforcement actions can result in negative publicity and harm to a company’s reputation, particularly if the action is seen as aggressive or disproportionate to the alleged infringement.
  4. Cultural and language barriers: IP right holders may face challenges in navigating the legal system in Vietnam, which can have different cultural and linguistic norms than those in the company’s home country.

To minimize the above risks and potential pitfalls, IP right holders should consider the following solutions:

  1. Conduct a cost-benefit analysis: IP right holders should carefully assess the costs and benefits of pursuing legal action, including the potential risks and pitfalls, and explore alternative dispute resolution methods.
  2. Seek professional advice: IP right holders should consult with experienced IP lawyers and agents in Vietnam who can provide advice on the legal landscape, cultural norms, and best practices for IP enforcement.
  3. Maintain a professional and respectful approach: IP right holders should adopt a professional and respectful approach in all communications and actions related to IP enforcement in Vietnam, and avoid taking actions that may be perceived as aggressive or disproportionate.
  4. Monitor and protect IP rights proactively: IP right holders should take proactive measures to monitor and protect their IP rights in Vietnam, such as registering their IP rights and conducting regular audits of their IP portfolio.
  5. Develop relationships with enforcement agencies: IP right holders should seek to develop positive relationships with Vietnamese enforcement agencies and work collaboratively with them to protect their IP rights.

Q 91: How do IP laws and regulations in Vietnam address online infringement, and what strategies can IP right holders use to protect their IP rights in the digital realm?

In Vietnam, IP laws and regulations address online infringement through various provisions related to copyright, trademarks, domain names, and e-commerce. The IP Law, for example, provides for the protection of copyright and related rights in digital form, including through technical measures such as encryption and digital watermarks.

To protect their IP rights in the digital realm, IP right holders can use several strategies, such as:

  1. Monitoring: IP right holders can monitor online platforms and marketplaces for potential infringement of their IP rights, including websites, social media, and e-commerce platforms.
  2. Enforcement: IP right holders can take legal action against infringers, including sending C&D letters, filing complaints with relevant authorities, and pursuing civil or criminal litigation.
  3. Domain name protection: IP right holders can protect their trademarks by registering relevant domain names and taking legal action against cybersquatters or domain name hijackers.
  4. Collaboration: IP right holders can collaborate with online marketplaces and platforms to implement IP protection measures, such as takedown procedures for infringing content and tools for reporting infringement.
  5. Education: IP right holders can educate their employees, customers, and partners on the importance of respecting IP rights, and promote awareness of the risks and consequences of online infringement.

However, there are still potential risks and pitfalls associated with online IP enforcement in Vietnam, such as:

  1. Difficulties in identifying infringers: Online infringement can be difficult to detect and identify, and infringers may operate from jurisdictions outside of Vietnam.
  2. Lack of effective enforcement mechanisms: Although Vietnamese laws and regulations provide for protection of IP rights online, the enforcement mechanisms may not be fully effective in practice.
  3. Reputational risks: Pursuing aggressive enforcement actions, such as takedowns or litigation, may lead to negative publicity and damage the company’s reputation.

To minimize exposure to these risks and pitfalls, IP right holders should consult with IPenforcement experts in Vietnam, conduct thorough due diligence and risk assessments before acting, and implement a comprehensive IP protection strategy that takes into account both online and offline risks.

Q 92: How can foreign companies work with local lawyers and IP experts to navigate the complexities of IP enforcement in Vietnam, and what factors should they consider when selecting a local partner?

Foreign companies can work with IP experts to navigate the complexities of IP enforcement in Vietnam by following these steps:

  1. Conduct thorough research: Before selecting a local partner, foreign companies should conduct thorough research and due diligence to identify potential candidates. This may involve consulting with industry contacts or legal directories, reviewing online profiles and testimonials, and assessing the partner’s track record and expertise in IP enforcement in Vietnam.
  2. Assess communication and language skills: Given the language barrier, foreign companies should ensure that their local partner has excellent communication and language skills, both in English and Vietnamese, to ensure effective communication and collaboration throughout the enforcement process.
  3. Review relevant experience: It is important to review the local partner’s relevant experience and expertise in IP enforcement, particularly in the relevant industry sector. This can help ensure that the partner is well-versed in the relevant legal and regulatory requirements and can effectively represent the foreign company’s interests.
  4. Evaluate resources and capabilities: Foreign companies should evaluate their potential partner’s resources and capabilities to ensure that they have the necessary tools, technology, and personnel to effectively conduct investigations, gather evidence, and pursue legal action as needed.
  5. Clarify expectations and communication protocols: To ensure a successful partnership, foreign companies should clarify their expectations and establish clear communication protocols with their local partner. This can help ensure that everyone is aligned on goals, timelines, and communication channels, and can minimize misunderstandings or miscommunications that could impact the enforcement process.

Overall, foreign companies should carefully evaluate potential local partners based on their experience, communication skills, and resources, and establish clear expectations and communication protocols to ensure a successful partnership for IP enforcement in Vietnam.

Q 93: What are the benefits of pursuing alternative dispute resolution (ADR) options in IP cases in Vietnam, and what are the most common ADR mechanisms used in the country?

Alternative dispute resolution (ADR) options can offer several benefits in IP cases in Vietnam, including faster resolution, lower costs, and the ability to preserve business relationships. Some of the most common ADR mechanisms used in Vietnam include negotiation, mediation, and arbitration.

Negotiation involves direct discussions between the parties to reach a mutually acceptable agreement. It is typically the simplest and least formal ADR option but may not be appropriate in cases where the parties have significant differences in bargaining power.

Mediation involves a neutral third party who assists the parties in reaching a voluntary settlement. The mediator does not impose a decision but instead helps the parties to explore options and find common ground. Mediation is often quicker and less expensive than litigation and can preserve business relationships.

Arbitration involves a neutral third party who acts as a decision-maker and imposes a binding decision on the parties. The decision is generally final and enforceable, but the arbitration process can be more expensive and time-consuming than mediation.

When selecting a local partner for ADR in Vietnam, foreign companies should consider factors such as the partner’s expertise in IP law, their experience in ADR proceedings, their reputation and track record, and their familiarity with local customs and practices. Companies may also want to consider the partner’s language abilities and their ability to communicate effectively with both foreign and Vietnamese parties. It is important to choose a partner with whom the company can establish a strong working relationship based on mutual trust and respect.

Q 94: How can companies stay up to date on the latest developments in IP law and practice in Vietnam, and what resources are available to help them do so?

Staying up to date on the latest developments in IP law and practice in Vietnam is essential for companies to effectively protect and enforce their IP rights. Here are some resources that can help:

  1. Legal and IP firms: Working with local law firms and IP experts is one of the most effective ways to stay up to date on the latest developments in IP law and practice in Vietnam. These firms can provide tailored advice on specific issues and help companies navigate the complexities of IP enforcement in the country.
  2. Industry associations: Industry associations can be a valuable resource for companies looking to stay up to date on the latest developments in their sector. Many associations have dedicated IP committees that monitor IP law and practice in Vietnam and provide guidance to members.
  3. Government agencies: The Vietnamese government has several agencies that are responsible for IP protection and enforcement, including the Intellectual Property Office of Vietnam (IPVN) and the Market Management Bureau. These agencies can provide information on the latest legal developments and help companies navigate the IP enforcement process.
  4. Online resources: There are several online resources that companies can use to stay up to date on the latest IP developments in Vietnam. These include the IPVN website, which provides information on IP laws and regulations in Vietnam, and the website of the Vietnam Intellectual Property Association (VIPA), which provides news and updates on IP developments in the country.
  5. Seminars and training: Attending seminars and training sessions on IP law and practice in Vietnam is another effective way for companies to stay up to date on the latest developments. These events are often organized by law firms, industry associations, and government agencies and provide an opportunity for companies to network with other stakeholders and gain insights from experts in the field.

Q 95: What are the legal and practical considerations that companies should take into account when choosing between civil and criminal enforcement actions in IP cases in Vietnam?

When choosing between civil and criminal enforcement actions in IP cases in Vietnam, companies should consider both legal and practical considerations.

From a legal perspective, civil enforcement actions are typically less complex and costly than criminal enforcement actions. Civil actions can result in the award of damages or injunctive relief, while criminal actions can lead to fines, imprisonment, or both. However, criminal actions may provide stronger deterrence against future infringement and can result in the seizure or destruction of infringing goods.

From a practical perspective, companies should consider the likelihood of success in their enforcement actions. Civil enforcement actions generally require a lower burden of proof than criminal actions, which require evidence beyond a reasonable doubt. Additionally, criminal actions may involve lengthy investigations and trials, which can be costly and time-consuming. It is important to note that there are just some types of infringement that are subjected to the criminal actions (see Q 86). Therefore, it is crucial to consider the potential benefits and costs of each type of action before deciding which path to pursue.

Companies should also consider the potential impact on their business reputation and relationships with customers and partners. Criminal actions may draw more attention and scrutiny, potentially causing negative publicity and damage to the company’s reputation. Civil actions may be less visible but can still result in negative perceptions if handled poorly.

Ultimately, the choice between civil and criminal enforcement actions in IP cases in Vietnam will depend on the specific circumstances of each case and the objectives of the company. Companies may benefit from seeking advice from local lawyers or IP experts to assess their options and make an informed decision.

Q 96: What are the typical timelines for IP enforcement actions in Vietnam?

The timelines for IP enforcement actions in Vietnam can vary depending on the complexity of the case and the specific legal procedures involved. Generally, civil actions can take between 9 months to 1.5 years to reach a judgment, while criminal actions can take 1-2 years or more. Appeals can add an additional 6 months to 1 year or longer.

It is important to note that the timelines can vary depending on the specific circumstances of each case. It is also worth noting that Vietnam has made significant efforts to improve the efficiency of its legal system, including the establishment of specialized IP courts, which may lead to more streamlined procedures and faster resolution of cases in the future.

Q 97: What are the most common types of IP infringement in Vietnam, and what are some effective strategies for preventing and addressing them?

The most common types of IP infringement in Vietnam include trademark infringement, copyright infringement, and trade secret misappropriation. To prevent and address these types of infringement, companies can implement a range of strategies, such as:

  • Trademark registration: Registering trademarks with the Vietnamese Intellectual Property Office (IP Vietnam) can help protect against infringement by giving the trademark owner exclusive rights to use the mark in commerce.
  • Copyright registration: Copyright owners can register their works with IP Vietnam, which provides additional evidence of ownership and can help in enforcement actions.
  • Employee training: Educating employees on the importance of IP protection and the potential consequences of infringement can help prevent inadvertent violations and promote a culture of respect for IP.
  • Supplier agreements: Including IP protection clauses in supplier agreements can help ensure that suppliers do not infringe on a company’s IP rights or use its IP for unauthorized purposes.
  • Monitoring and enforcement: Regular monitoring of the market and online platforms can help identify potential infringement, which can then be addressed through cease-and-desist letters, negotiation, or legal action.

By implementing these strategies, companies can better protect their IP rights and prevent infringement. However, it is important to note that no strategy can completely eliminate the risk of infringement, and vigilance and prompt action are key to addressing any instances of infringement that do occur.

Q 98: How does the Vietnamese legal system handle cross-border IP disputes, and what are some of the key challenges and complexities associated with these cases?

Cross-border IP disputes in Vietnam are typically handled through international treaties and agreements, such as the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and bilateral or multilateral agreements between countries.

In general, the Vietnamese legal system recognizes the jurisdiction of foreign courts and arbitration bodies in resolving cross-border IP disputes, although the enforcement of foreign judgments and awards can sometimes be challenging. The Vietnamese courts may also have jurisdiction over cross-border disputes if the infringement occurred within Vietnam or if the defendant is a Vietnamese national or company.

One key challenge in cross-border IP disputes is the differing legal frameworks and enforcement mechanisms in different countries. This can make it difficult to determine the appropriate forum for the dispute and to navigate the various legal systems involved. Additionally, language barriers and cultural differences can also create challenges in communication and understanding between the parties involved.

To address these challenges, companies can work with experienced cross-border IP lawyers and experts who are familiar with the legal systems and cultural nuances of the relevant countries. They can also explore alternative dispute resolution mechanisms, such as international arbitration, which can provide a neutral forum for resolving disputes and avoid the complexities of navigating multiple legal systems.

Q 99: What are some recent trends and developments in IP enforcement and protection in Vietnam, and how are these likely to impact foreign companies doing business in the country?

In recent years, Vietnam has made significant efforts to improve its IP legal framework and enforcement mechanisms, reflecting the country’s increasing importance as a hub for innovation and trade. One notable development was the passage of the Law on Intellectual Property in 2022, which brought Vietnam’s IP regime in line with international standards and included provisions to improve the protection of trademarks, patents, and other forms of IP.

Another trend has been the increasing use of technology in IP enforcement, with a growing number of companies employing online tools and data analytics to identify and track potential infringements. This has been accompanied by greater collaboration between IP rights holders and law enforcement agencies, as well as increased investment in specialized IP courts and tribunals.

However, challenges remain, particularly with respect to cross-border enforcement and the protection of digital IP assets. In addition, there is a need for further education and awareness-raising among businesses and consumers regarding the importance of respecting IP rights.

Overall, the trend towards stronger IP enforcement and protection in Vietnam is likely to benefit foreign companies operating in the country, providing greater certainty and security for their investments and encouraging further innovation and economic growth.

Q 100: What are the key IP-related regulations and policies that foreign companies should be aware of when doing business in Vietnam, and how can they ensure compliance with these requirements?

Foreign companies should be aware of the following key IP-related regulations and policies when doing business in Vietnam:

  1. IP laws and regulations: The primary legal framework for IP in Vietnam includes the IP Law, the Civil Code, and related regulations issued by the Ministry of Science and Technology and other relevant government agencies. Foreign companies should ensure that their IP rights are properly registered and enforced in accordance with these laws and regulations.
  2. Investment and trade agreements: Vietnam is a party to many international trade and investment agreements, including the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), the ASEAN Free Trade Agreement (AFTA), and various bilateral investment treaties (BITs). Foreign companies should review these agreements to understand the protections and obligations related to IP that apply to their business in Vietnam.
  3. Customs regulations: Vietnam has implemented customs measures to prevent the import and export of goods that infringe IP rights, including border control measures and detention of suspected infringing goods. Foreign companies should be aware of these regulations and work with Vietnamese customs authorities to protect their IP rights.
  4. Cybersecurity and data protection: Vietnam has issued various regulations and policies related to cybersecurity and data protection, including the Law on Cybersecurity and the Law on Personal Data Protection. Foreign companies operating in Vietnam should ensure compliance with these regulations and implement appropriate measures to protect their IP assets and sensitive data.

To ensure compliance with these requirements, foreign companies should work with local IP experts to navigate the complex regulatory landscape in Vietnam. They should also establish and maintain internal policies and procedures to monitor and protect their IP assets and ensure compliance with relevant laws and regulations.

Q 59: What is copyright? The basis for the arising of copyright?

Copyright is a form of legal protection that gives creators of original works exclusive rights to control the use and distribution of their works. Copyright law in Vietnam is based on the Vietnamese Law on Intellectual Property, which provides protection for a wide range of creative works.

Copyright automatically arises from the moment a work is created in a certain material form, regardless of content, quality, form, medium, language, published or unpublished, registered or unregistered.

Copyright protection applies to both published and unpublished works.

In addition, copyright protection is automatic and does not require registration. However, registering the copyright can serve as evidence in case of infringement and make enforcement of rights easier.

Q60: Works subject to copyright registration?

  1. Literary, art and scientific works can be protected include:
    • Literary and scientific works, textbooks, teaching materials, and other works expressed written letters or other characters;
    • Lectures, addresses, and other speeches;
    • Press works;
    • Musical works;
    • Dramatic works;
    • Cinematographic works and works created by similar methods;
    • Fine art works and applied art works;
    • Photographic works;
    • Architectural works;
    • Sketches, plans, maps, and drawings relevant to topography, architectural or scientific works;
    • Folklore and folk art works;
    • Computer programs and data collections.
  2. Derivative works, if it does not harm the copyright owner’s rights to the work used to create derivative works.

Q 61: What types of works are not protected by copyright in Vietnam?

The following objects are not within the scope of copyright protection:

  1. Purely informative news.
  2. Legal normative documents, administrative documents, and other documents in the field of justice, as well as official translations of such documents.
  3. Processes, systems, methods of operation, concepts, principles, and data.

Q 62: What are related rights in Vietnam?

Copyright-related rights (“related rights”) refer to rights of organizations and individuals to performances, phonograms, video recordings, broadcasts, and encrypted program-carrying satellite signals.

Related rights arise when a performance, phonogram, video recording, broadcast, or encrypted program-carrying satellite signal is fixed or displayed without any prejudice to copyright.

Protected related rights include: Rights of performers; Rights of producers of audio and visual fixation; Rights of broadcasting organizations.

Q 63: What are the benefits of registering a copyright?

In Vietnam, copyright registration is an important step in protecting one’s IP rights. The benefits of copyright registration in Vietnam include:

  1. Legal Protection: Copyright registration provides legal protection for the author’s work. It serves as evidence of ownership, and in the event of infringement, the author can take legal action against the infringing party.
  2. Exclusive Rights: Copyright registration grants the author exclusive rights to reproduce, distribute, perform, and display their work.
  3. Public Notice: Registration puts the public on notice that the work is protected and that the author has rights in the work. It can deter potential infringers from using the work without permission.
  4. Damages and Remedies: Copyright registration can increase the potential for damages and remedies in an infringement suit. Registered works can be eligible for statutory damages, which can be significant.
  5. International Protection: Copyright registration in Vietnam can also facilitate protection in other countries. Vietnam is a member of the Berne Convention and the World Intellectual Property Organization, which provide international recognition and protection for registered copyrights.

Overall, copyright registration in Vietnam is an important tool for authors to protect their IP Rights and to prevent infringement.

Q 64: Is it necessary to obtain a copyright registration certificate for enforcing copyright?

Although copyright law grants automatic protection to works that meet the requirements for copyrightability, obtaining a copyright registration certificate can be beneficial for enforcing and protecting a work. While it is not mandatory to obtain registration, a certificate of copyright registration can serve as prima facie evidence of ownership of the copyright. Although there is no requirement for a deposit or notice of copyright work, it is highly recommended to obtain a certificate of copyright registration to take advantage of its legal benefits.

Q 65: Can foreign citizens or organizations qualify for copyright protection under the provisions of the IP Law of Vietnam?

Vietnam’s copyright law extends protection to both Vietnamese nationals and foreign citizens or organizations, provided that they meet certain criteria.

Specifically, foreign individuals or organizations whose works were first published in Vietnam and have not been published in any other foreign country, or whose works are eligible for protection in Vietnam according to international treaties to which Vietnam is a party, are entitled to copyright protection.

Q 66: How can a foreign individual or company register a copyright in Vietnam?

According to the provisions of the IP Law, foreign individuals or foreign companies can apply for copyright registration for their works in the territory of Vietnam. However, they are not allowed to directly submit the application for registration of copyright but authorizing the licensed copyright representative.

Q 67: What are the requirements for copyright registration?

  1. Application form: The copyright registration application form must be completed and signed by the author or copyright holder.
  2. Eligible works: Only original works that fall under the protection of the Vietnamese Copyright Law can be registered for copyright. These works include literary, artistic, and scientific works.
  3. Work samples: Copies of the works that are being registered must be provided. For computer programs, source code or object codes can be submitted.
  4. Proof of ownership: The applicant must provide evidence of ownership of the work, such as a contract or agreement showing that the author has transferred ownership to the applicant.
  5. Power of attorney: Foreign authors and/or foreign copyright owners must appoint a local copyright qualified agent to apply for copyright registration in Vietnam.
  6. Other documents: Depending on the type of work being registered, additional documents may be required.

It is worth noting that the COV may request additional documents or information during the registration process.

Q 68: Time for obtaining a copyright certificate in Vietnam?

The process typically takes around 1 month, but it may take longer if the COV requests additional information or if there are any complications with the application.

Q 69: What is the duration of copyright protection in Vietnam?

This varies depending on the type of work.

Copyright in works shall include two types: (i) moral rights, and (ii) economic rights.

The moral rights, under Article 19 of Vietnam IP Law, include rights:

  1. To give titles to their works;
  2. To attach their real names or pseudonyms to their works; to have their real names or pseudonyms acknowledged when their works are published or used;
  3. To publish their works or to authorize other persons to publish their works;
  4. To protect the integrity of their works; and to forbid other persons to modify, edit or distort their works in whatever form, causing harm to the honour and reputation of the author)

The economic rights, under Article 20 of Vietnam IP Law, include rights:

  1. To make derivative works;
  2. To display their works to the public;
  3. To reproduce their works;
  4. To distribute or import the original or copies of their works;
  5. To communicate their works to the public by wireless or landline means, electronic information networks or other technical means;
  6. To lease the original or copies of cinematographic works and computer programs.

The moral rights stipulated in clauses 1, 2 and 4 of Article 19 of Vietnam IP Law shall last indefinitely.

The moral rights stipulated in article 19.3 and the economic rights stipulated in Article 20 of Vietnam IP Law shall enjoy the following terms of protection:

  1. Cinematographic works, photographic works, works of applied art and anonymous works have a term of protection of 75 (seventy-five) years from the date of first publication. For cinematographic works, photographic works and works of applied art which remain unpublished within twenty-five years from the date of fixation, the term of protection is 100 (one hundred) years from the date of fixation. For anonymous works, when information on their authors is published, the term of protection will be calculated under Point b below.
  2. A work not specified at Point (i) is protected for the whole life of the author and for 50 (fifty) years after his/her death. For a work under joint authorship, the term of protection expires in the fiftieth year after the death of the last surviving co-author;
  3. The term of protection specified in Points (i) and (ii) above expires at 24:00 hrs of December 31 of the year of expiration of the copyright protection term.

Q 70: How does copyright infringement occur in Vietnam, and what are the legal consequences for infringement?

Copyright infringement in Vietnam can occur in many ways, including but not limited to:

  1. Reproducing or distributing copyrighted works without permission: This includes making copies of copyrighted works, distributing them without the owner’s consent, or selling unauthorized copies of copyrighted works.
  2. Public performance or display of copyrighted works without permission: This includes showing or performing copyrighted works in public places such as theaters, bars, or restaurants, without obtaining the proper authorization from the copyright owner.
  3. Adaptation or modification of copyrighted works without permission: This includes making changes to copyrighted works without the permission of the copyright owner, such as translating a work into a different language or creating a derivative work.
  4. Failure to credit the author or owner of a copyrighted work: This involves failing to attribute the copyright owner or author of a work that is being used.

In Vietnam, the legal consequences for copyright infringement can be severe. Those found guilty of copyright infringement may face civil, administrative, and criminal penalties, including:

  1. Civil penalties: The copyright owner can file a lawsuit against the infringer to seek damages or other remedies, such as an injunction to stop the infringing activity.
  2. Administrative penalties: In cases where the infringement is not considered serious, the competent authority may impose administrative sanctions, such as fines or seizure of infringing goods.
  3. Criminal penalties: In cases where the infringement is deemed serious or repeated, the infringer may face criminal prosecution, which can result in imprisonment or substantial fines.

It’s worth noting that copyright infringement can also result in reputational damage to the infringer, which can negatively impact their business or personal life. Therefore, it’s essential to respect the intellectual property rights of others and obtain permission before using copyrighted works.

Q 71: How can copyright owners protect their works against infringement in Vietnam?

Copyright owners in Vietnam can protect their works against infringement through various means, including:

  1. Monitoring: Owners can monitor the marketplace to detect any unauthorized use or distribution of their copyrighted works.
  2. Cease and desist letters: Copyright owners can send cease and desist letters to individuals or companies suspected of infringing their copyright, demanding that they stop the infringing activity.
  3. Negotiation: Copyright owners can negotiate with infringers to reach a settlement that compensates the owner for the infringement.
  4. Legal action: If negotiation fails, owners can pursue legal action against the infringer. This can involve filing a lawsuit in court and seeking a court order to stop the infringing activity and/or seeking compensation for damages suffered as a result of the infringement.
  5. Enforcement by authorities: In some cases, copyright owners can also request the authorities to take action against infringers, such as by seizing infringing copies or taking down infringing content from websites.

It’s worth noting that copyright owners in Vietnam may find it helpful to work with a local attorney who has experience in copyright law and enforcement in the country.

Q 72: How many collective management organizations (CMOs) in Vietnam?

There are currently five collective management organizations (CMOs) in Vietnam:

  1. Vietnam Center for Protection of Music Copyright (VCPMC)
  2. Recording Industry Association of Vietnam (RIAV)
  3. Vietnam Literary Copyright Center (VLCC)
  4. Vietnam Reproduction Right Organization (VIETRRO)
  5. Vietnam Association for Rights Protection of Music Performing Artists (APPA)

In addition, there are several international CMOs that have a presence in Vietnam, including:

  1. International Federation of Reproduction Rights Organisations (IFRRO)
  2. International Confederation of Societies of Authors and Composers (CISAC)
  3. Association of Rights Management for Audiovisual and Cinematographic Works (AGICOA)
  4. International Federation of the Phonographic Industry (IFPI).

Q 73: What are plant variety rights?

Plant variety right means rights of an organization or individual to new plant varieties which such organization or individual has selected and created, discovered and developed, or which they own.

Q 74: What legal documents govern plant variety rights in Vietnam?

Plant variety rights in Vietnam are mainly governed by the Law on Intellectual Property, which was first enacted in 2005 and subsequently amended in 2009, 2019 and 2022 (“The IP Law”).

In addition to the IP Law, there are also several subordinate legal documents governing plant variety rights in Vietnam, such as:

  • Decree No. 88/2010/ND-CP dated August 16, 2010, detailing and guiding a number of articles of the IP Law regarding plant variety rights.
  • Circular No. 16/2013/TT-BNNPTNT dated February 28, 2013, issued by the Minister of Agriculture and Rural Development on the protection of plant variety rights, amended by the Circular No. 03/2021/TT-BNNPTNT dated June 22, 2021.

Furthermore, Vietnam is also a member of the International Union for the Protection of New Varieties of Plants (UPOV), which sets international standards for the protection of plant variety rights.

Q75: Who can apply for plant variety rights in Vietnam?

Organizations and individuals entitled to register for protection of plant varieties include:

  1. a) Breeders who have personally selected and bred or discovered and developed the plant variety by their own efforts and at their own expense;
  2. b) Organizations and individuals who fund breeders to select and breed or discover and develop the plant variety by job assignment or hiring, unless otherwise agreed;
  3. c) Organizations and individuals to whom are transferred, or who inherit the right to register for protection of the plant variety.

Q 76: What are the characteristics of a plant variety that is eligible to protection in Vietnam?

A plant variety will be eligible for protection if that plant variety is selected and bred or discovered and developed and is new, distinct, uniform, stable and designated by proper denominations.

Novelty of a plant variety

A plant variety shall be deemed new if breeding materials and reproductive materials of such variety have not yet been sold or otherwise distributed for the purpose of exploitation in the territory of Vietnam by the registration right holder defined in article 164 of this Law or his or her licensee one (1) year before the filing date of the application for registration, or for exploitation outside the territory of Vietnam six (6) years before the filing date of the application for registration for timber trees or woody vine, or four (4) years for other plant varieties.

Distinctness of a plant variety (Article 160 – IP Law)

  1. A plant variety shall be deemed to be distinct if it is clearly distinguishable from any other plant variety whose existence is a matter of common knowledge at the time of filing the application or on the priority date, as the case may be.
  2. Plant varieties whose existence is a matter of common knowledge defined in clause 1 of this article are those falling into one of the following cases:
    • Their breeding materials and reproductive materials have been widely used in the market of any country at the time of filing of the protection registration application;
    • They have been protected or registered in the list of plant varieties in any country;
    • They are the subject matter of protection registration application or application for registration in the list of plant varieties in any country, provided that such applications are not rejected;

Uniformity of a plant variety (Article 161 – IP Law)

A plant variety shall be deemed uniform if, subject to variation which may be expected from the particular features of its propagation, it is sufficiently uniform in its relevant characteristics.

Stability of a plant variety (Article 162 – IP Law)

A plant variety shall be deemed stable if its relevant originally described characteristics remain unchanged after repeated propagation or, in the case of a particular cycle of propagation, at the end of each cycle.

Denominations of plant varieties (Article 163 – IP Law)

  1. The registrant must designate a proper denomination for a plant variety which must be the same as the denomination registered in any member state of UPOV or any foreign country that has concluded an agreement on protection of plant varieties with the Socialist Republic of Vietnam.
  2. The denomination of a plant variety shall be deemed proper if it is distinguishable from those of other plant varieties of common knowledge within the same or similar species.
  3. Denominations of plant varieties shall be deemed improper in the following cases:
    • They consist of numerals only, except where such numerals are relevant to characteristics or the breeding of such variety; or include the species name of such variety;
    • They violate social ethics;
    • They may easily mislead as to features or characteristics, value of such variety;
    • They may easily mislead as to identification of the breeder;
    • They are identical or confusingly similar to marks, trade names or geographical indications protected before the date of publication of the protection registration application of such plant variety;
    • They affect the prior rights of other organizations or individuals.
  4. Organizations and individuals who offer for sale or bring onto the market reproductive materials of plant varieties must use the denominations of such plant varieties as stated in protection titles even after the expiration of the protection terms.
  5. When denominations of plant varieties are combined with trademarks, trade names or indications similar to denominations of plant varieties already registered for sale offer or brought onto the market, such denominations must still be distinguishable.
  6. In the denomination of the proposed plant variety does not satisfy the requirements as specified, the plant variety right authority shall reject it and request the applicant to propose another denomination within 30 days from the date to notice. The plant variety right authority shall record the official denomination of the plant variety from the issuance date of the plant variety protection certificate.

Q 77: What is term of protection for plant variety rights in Vietnam?

In Vietnam, plant variety rights last for a period of 25 years from the date of grant for timber trees and woody vines, and 20 years from the date of grant for other plants.

Q 78: What rights does the holder of plant variety protection have in Vietnam?

Plant variety protection holders in Vietnam have exclusive rights to exercise or authorize others to exercise the following rights to reproductive materials of a protected plant variety:

  1. To conduct production or propagation;
  2. To process them for the purpose of propagation
  3. To offer them for sale
  4. To sell them or conduct other marketing activities;
  5. To export them
  6. To import them
  7. To store them for conducting acts specified at Points a. b. c. d. e and f of this Clause.

The plant variety protection holder also has the right to prevent any other third party from using the plant variety.

Furthermore, the plant variety protection holder has the right to pass by inheritance or bequeath or assign the rights to the plant variety.

Q 79: Can plant variety rights be transferred or licensed to others in Vietnam?

Yes, plant variety rights can be transferred or licensed to others in Vietnam in accordance with Article 192 and Article 194 of the IP Law of Vietnam, the plant variety owner has the right to transfer his/her rights to another person or to license another person to use his/her protected plant variety rights.

The transfer or licensing of plant variety rights must be in writing agreement and the transfer agreement needs to be registered with the plant variety protection agency. The transfer or licensing agreement must specify the scope and duration of the rights being transferred or licensed and the conditions for the use of the protected plant variety.

The transfer of plant variety rights to another person can be partial or complete. In case of partial transfer, the plant variety owner may retain some of his/her rights and transfer the remaining rights to another person.

The plant variety owner can also grant a license to another person to use his/her protected plant variety for a specific purpose, scope and duration. The license agreement must also specify the amount of royalty or remuneration to be paid to the plant variety owner for the use of his/her protected plant variety.

In addition, a licensee may also have the right to sub-license the use of the protected plant variety to others, unless otherwise agreed by the plant variety owner. However, the sub-licensee is not entitled to any rights beyond those granted by the original licensee.

Q 80: What is the penalty for infringing on plant variety rights in Vietnam?

According to Article 211 of the IP Law, individuals or organizations that infringe on plant variety rights can face administrative sanctions.

The plant variety right holder owner may bring a civil lawsuit against the infringer and claim compensation for damages caused by the infringement. The compensation amount may include actual damages suffered by the plant variety right holder, as well as any profits that the infringer gained from the infringement.

There are no criminal penalties for infringement on plant variety rights.

Q 81: Are there any exemptions or limitations on plant variety rights in Vietnam?

Yes, there are certain exemptions and limitations on plant variety rights in Vietnam, such as, the following acts are not regarded as infringements of rights to protected plant varieties:

  1. Using plant varieties for personal and non­commercial purposes.
  2. Using plant varieties for testing purposes.
  3. Using plant varieties to create new plant varieties, except the case specified in Article 187 of this Law.
  4. Using harvested materials of protected plant varieties by individual production households for self-propagation and cultivation in the next season on their own land areas.

It is important to note that these exemptions and limitations are subject to certain conditions and limitations under the relevant Vietnamese laws and regulations.

Q 82: How does Vietnam’s plant variety rights regime compare to other countries?

Vietnam’s plant variety rights regime is generally in line with international standards and practices, as it is based on the UPOV Convention and the TRIPS Agreement. However, there are some differences and unique aspects to Vietnam’s system compared to other countries.

One of the unique features of Vietnam’s system is the requirement for local adaptation. In order to be eligible for plant variety protection, a variety must be tested and proven to be suitable for local conditions. This is intended to promote the development of new plant varieties that are well adapted to Vietnam’s climate and soil conditions.

Another notable aspect of Vietnam’s system is the availability of a compulsory licensing system. This allows the government to grant a license to a third party to produce and sell a protected variety if the original owner is not meeting certain conditions, such as reasonable pricing or sufficient supply. This is meant to ensure that protected plant varieties are available to the public at reasonable prices and in sufficient quantities.

Overall, while there are some unique aspects to Vietnam’s plant variety rights regime, it is largely consistent with international standards and practices.

Q 83: How can foreign companies protect their plant varieties in Vietnam?

Foreign companies can protect their plant varieties in Vietnam by filing an application for plant variety protection with the Plant Variety Protection Office of Vietnam. The application should include all the necessary information and documentation, such as the name and description of the variety, the breeding and selection process, and evidence of distinctness, uniformity, and stability.

It’s important for foreign companies to work with experienced attorneys or agents who are familiar with the local laws and regulations in Vietnam, as well as the procedures for obtaining plant variety protection. They can assist with the application process, communicate with the relevant authorities, and provide guidance on how to ensure that the application meets all the requirements.

Foreign companies can also consider licensing their plant varieties to local partners in Vietnam, who can then produce and sell the plants under a licensing agreement. This can help to mitigate the risks of infringement and provide a source of revenue from licensing fees. However, it’s important to have a well-drafted licensing agreement that clearly defines the rights and obligations of both parties and addresses issues such as royalties, quality control, and dispute resolution.

Q 84: What resources are available for companies looking to navigate Vietnam’s plant variety rights system?

There are several resources available for companies looking to navigate Vietnam’s plant variety rights system. One of the main resources is the Plant Variety Protection Office (PVPO) under the Ministry of Agriculture and Rural Development, which is responsible for granting and managing plant variety rights in Vietnam. The PVPO can provide guidance on the application process, legal requirements, and other related issues.

Additionally, there are several law firms and intellectual property consultants in Vietnam that specialize in plant variety rights and can help companies seeking to protect their plant varieties. These firms can assist with the application process, drafting licensing agreements, and enforcing plant variety rights.

There are also international organizations that provide information and support on plant variety rights, such as the International Union for the Protection of New Varieties of Plants (UPOV) and the World Intellectual Property Organization (WIPO). These organizations can provide guidance on international standards and best practices for plant variety protection.

Overall, companies seeking to navigate Vietnam’s plant variety rights system should seek the advice of legal and intellectual property experts and consult with relevant government agencies for guidance and assistance.

GENERAL

Industrial property rights mean rights of organizations and individuals to inventions, industrial designs, layout-designs of semiconductor integrated circuits (“layout-designs”), trade secrets, marks, trade names, geographical indications, and trade secrets they have created or own, and the right to repression of unfair competition.

Q 1: How are industrial property rights established?

Industrial property rights for each form/object are established as follows:

Form/object Ground for establishment
Inventions, industrial designs,layout designs, trademarks Established on the basis of the decision to grant a certificate of protection by the competent state agency in accordance with the registration procedures prescribed by the IP Law of Vietnam or recognized as an international registration in accordance with international treaties to which the Socialist Republic of Vietnam is a member.
Well-known marks Established on the basis of use, independent of registration procedures.
Geographical indications Established on the basis of a protection certificate issued by a competent state agency according to the registration procedure stipulated by the IP Law or under international treaties to which the Socialist Republic of Vietnam is a member.
Trade names Established on the basis of lawful use of that trade name.
Trade secrets Established on the basis of legally obtaining a trade secret and implementing the protection of that trade secret.
Rights against unfair competition Established on the basis of business competition activities.

TRADEMARKS

Q 2: What types of trademarks can be protected in Vietnam?

The current Vietnam IP Law provides for different types of trademarks, including trademarks and service marks (collectively referred to as “trademarks”), collective marks, certification marks, associated marks, well-known marks and unregistered marks.

Any sign, including letters, words, drawings, devices, three dimensional signs, or a combination thereof, represented in one or more colours or sound trademark that can be graphically presented, might be eligible for protection as a trademark.

Sound marks are a new type of mark that is allowed to be registered as trademarks in Vietnam, after the amended IP Law 2022.

A three-dimensional sign might be eligible for registration and protection as a trademark, but a specific definition of the condition of protection is still not yet available in the current Vietnam IP Law. Practically, a three-dimensional sign is accepted for protection as a “three-dimensional trademark” only when it is recognised as a widely used trademark in the market.

All rights to such trademarks are established based on statutory law rather than case law, except for well-known trademarks and those exceptional cases where signs have acquired secondary meaning through wide use for goods and services in the market.

Q 3: Can any sign be eligible for trademark protection?

No, the following signs are not protected as trademarks:

  1. Signs that are identical or similar to the extent that they cause confusion with the national flag, national emblem, national anthem of the Socialist Republic of Vietnam and those of other countries and international organizations.
  2. Signs that are identical or similar to the extent that they cause confusion with the symbols, flags, emblems, abbreviations, full names of State agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, and international organizations of Vietnam and those of international organizations, unless such use is authorized by the said agencies or organizations;
  3. Signs that are identical or similar to the extent that they cause confusion with the real name, nickname, pen name, image of leaders, national heroes, and celebrities of Vietnam and foreign countries;
  4. Signs that are identical or similar to the extent that they cause confusion with the certification marks, inspection marks, warranty marks of international organizations that such organizations have not allowed to be used, except for cases where such organizations have registered those marks as certification marks of goods and services;
  5. Signs that are misleading, cause confusion, or have the nature of deceiving consumers about the origin, function, use, quality, value, or other characteristics of goods and services;
  6. Signs that are the inherent shape of goods or must be present due to the technical characteristics of the goods;
  7. Signs that contain copies of works, unless authorized by the copyright owner of those works.
  8. Signs that consist only of color without being combined with word or figurative elements or it cannot be expressed in the form of word or figurative elements.
  9. Signs that violate social order, harm national security.

Q 4: Does a registration in black and white provide protection for all colours in Vietnam?

Currently, there are no regulations in Vietnam that provide protection for all colors under a black and white registration. Generally, applicants are advised to register marks in black and white as it offers broader protection, including protection for the mark in all colors. Additionally, using a color mark that is registered in black and white can prevent the cancellation of registration due to non-use. This is because using a trademark in a slightly modified form that does not alter its distinctive character as registered will not invalidate the registration or reduce the protection granted to the mark.

Q 5: Which edition of NICE Classification is adopted in Vietnam now? Is the wording in the “class headings” of the NICE Classification acceptable in all classes?

Vietnam has adopted the international classification of goods and services for the purposes of trademark registration. Vietnam currently adopts the 12th edition of the Nice Classification system.

Class headings or general description of goods/services is not acceptable. The goods and services under any application must be listed into specific items, preferably using the terms guided in the Nice Classification.

Q 6:  Can foreign words be registered as trademarks?

A mark can be refused for being indistinctive if it is made up solely of foreign words written in non-Latin, non-English characters such as Chinese, Japanese, Korean, etc., unless it has been widely used and recognized as a trademark in Vietnam.

Q 7: What are the requirements for a trademark registration application?

The formal and basic requirements for a trademark registration application are as follows:

  1. the application must include the full name, nationality and full address of the applicant;
  2. a specimen of the trademark must be provided, at a maximum size of 8cm x 8cm;
  3. a list of goods/services bearing the trademark must be supplied, listing each item and classification in accordance with the international classification of goods and services for the purpose of registration of a mark under the Nice Agreement (IP Vietnam adopts the 12th Edition while also issuing the same in Vietnamese); and
  4. Power of Attorney, duly signed by the applicant if the application is filed through an IP Agent.

Application and all documents filed with IP Office must be in Vietnamese.

Q 8: Is it possible to voluntarily disclaim descriptive words at the time of filing a trade mark application in Vietnam?

The laws of Vietnam do not provide any provisions for voluntarily disclaiming descriptive words while filing a trademark application. In fact, during the substantive examination stage, the applicant may receive a Notice of Intention of Grant of Certificate, in which the IP Office states to disclaim any descriptive words. If the applicant agrees with the IP Office’s disclaimer, they should proceed to pay the registration fees to obtain protection. However, if they disagree, they can respond to the IP Office’s notice.

Q 9: How long does it take to receive an examination report on a trademark application in Vietnam?

Under the IP Law of Vietnam, a trademark application must undergo 02 phases of examination, namely formality examination (in 1 month from the filing date) and substantive examination (in 9 months from the publication date), making the total time for examination of a trademark application, including publication (within 02 month from the formality acceptance date), be roughly 12 months from filing. However, in practice, the examination is often prolonged 16-18 months or even more.

Q 10: How long does it take to achieve a trademark registration in Vietnam after trademark filing?

In case the trademark is concluded to be registrable, the applicant will be invited to pay the granting fee in three (03) months from the date of notification. Under the laws, within 10 days after applicant pays fully and on time the prescribed fees and charges, the IP Office shall carry out the procedures for granting the Mark Registration Certificate. Hence, total time from filing till receiving a registration, in a smooth case, is approx. 13-14 months. However, in practice, the said timeline may be prolonged to 18-20 months.

Q 11: Is “expedited examination” available/ adopted? 

There is no regulation on the matter. In some special cases with the imperative reasons, the IP Office of Vietnam may accept fast-track trademark examination.

Q 12: Is “suspension of trademark examination” available/adopted?

Suspension of trademark examination is a new regulation added for the first time in Article 117.3 of the IP Law of Vietnam (amended on 2022). Accordingly, a trademark examination will be suspended if it falls into one of the three following cases:

  1. The applicant requests suspension of the application examination and invalidation of the cited marks because the applied-for mark is deemed to be similar to the cited marks under Article 74.2e.
  2. The applicant submits a request to suspend the application examination and requests invalidation of the cited mark(s) because the applied-for mark is deemed to be similar to the cited mark(s) that have expired for less than three years in pursuant to Article 74.2h.
  3. The applicant filed a lawsuit over the right to register an industrial property object or a trademark registered in bad faith.

Q 13: How long do we have to respond to an office action on a trademark application? Is it possible to extend the deadline to respond to the office action?

Subject of the type of office action, a different deadline will be set forth by the Vietnam IP Office.

  1. For an office action on formality examination, the applicant must submit a response within 02 months from the date of the Vietnam IP Office’s Notification.
  2. For an office action on substantive examination, the applicant is required to submit a response within 03 months from the Vietnam IP Office’s Notification.

It is possible for an applicant to request an extension of time to respond to an office action on a trademark application in Vietnam. An applicant is allowed to extend the response time once by paying any required fees. The extended time period is the same as the original response time (02 months for formality examination office action, 03 months for substantive examination office action). Any subsequent request for an extension will be evaluated on a case-by-case basis.

Q 14: How to appeal a refusal decision of trademark application in Vietnam?

After completing the substantive examination of a trademark application, if it is found not to meet the requirements for protection, the IP Office will issue a notice of its intended refusal to grant registration and provide a three-month time limit for the applicant to respond.

If no response is submitted, or the response is found unsatisfactory, the IP Office will issue the first refusal decision. The trademark applicant has the option to appeal this decision to the IP Office within 90 days of receiving or becoming aware of the refusal decision, after which the IP Office will issue a second decision.

If still unsatisfied, the concerned party can file a second appeal with the supervising body of IP Office, the Ministry of Science and Technology (“MOST”) or initiate legal proceedings at the court.

Q 15: How to file an opposition against the trademark application in Vietnam?

The amended IP Law of 2022 establishes two mechanisms for third parties to provide opinions on pending trademark applications in Vietnam:

  • third-party observation on the grant of a trademark registration and/or
  • opposition to the grant of a trademark registration.

Third party observation is a procedure that allows the public to submit opinions on trademark applications, which the examiner uses to make decision regarding the applications under examination. Third-party observation serves as a reference source for examiners during the examination process.

Opposition is an administrative procedure that enables a third party to challenge the validity of an industrial property registration application and subsequently seek the competent body to deny the grant of a certificate of trademark registration, provided the opponent offers legal grounds to substantiate his case.

The primary distinction between the two above-mentioned mechanisms is the time limit for third-party action. If you want to file an opposition to the registration of a trademark, you must file it within 5 months after the trademark application’s publication in the Industrial Property Gazette.

However, if you miss the 5-month deadline or discover that an adverse party’s trademark is in conflict with your earlier registered trademark, you may still submit your opinion to IP Office for its consideration through the “third-party observation” procedure as long as the adverse party’s mark is pending.

Q 16: Could lapsed trademark be considered as an obstacle against a later-filed mark?

A lapsed registered trademark may be an obstacle to a later-filed mark within three years of its lapse, unless it was invalidated due to non-use (within five years of its expiry due to non-renewal).

However, if a trademark lapsed after examination, it will not be cited against a later-filed similar mark.

Q 17: How to protect the well-known marks in Vietnam?

IP rights to well-known marks are established based on use, regardless of registration procedures. The IP Office of Vietnam will not accept applications for registration as well as applications for recognition of well-known marks.

In practice, competent government agencies (such as the IP Office, the Court) assess and recognize a trademark as well-known at the requests of organizations and individuals on a case-by-case basis.

Requests for the assessment of well-known trademarks may be made in the following circumstances:

  1. An organization or individual’s application for registration is rejected due to the mark falling under exclusionary factors or being confusingly similar to another mark. The organization or individual may establish rights for the mark by proving that it is well-known.
  2. Organizations and individuals may request the invalidation of a protection title or object to the granting of a registration certificate for a trademark based on a mark that is confusingly similar to a well-known mark.
  3. Organizations and individuals may request the handling of violations of industrial property rights related to well-known marks.
  4. Organizations and individuals may request the handling of unfair competition practices related to well-known marks.

Criteria for evaluating well-known marks in Vietnam:

In the past, a trademark in Vietnam could only be considered well-known if it met two requirements: first, it had to be widely known by “consumers”, and second, it had to have a widespread reputation throughout Vietnam’s territory. “Consumers” referred to the general public, not the “relevant public sector” as defined in the 2022 IP Law. However, the 2022 IP Law has amended Article 4 and Article 75 to narrow the scope of consumers and the criteria for identifying well-known marks. The new regulation defines a well-known mark as a mark widely known by relevant sectors of the public in Vietnam’s territory.

In addition, a mark’s well-known status can be assessed based on some or all of the criteria in Article 75, depending on the goods and services and relevant consumers.

  1. The number of relevant consumers who have become aware of the trademark through the purchase, use of goods or services bearing the trademark, or through advertising;
  2. The territorial scope in which the goods or services bearing the trademark have been circulated;
  3. The volume of goods sold or services provided bearing the trademark or the quantity of goods sold or services provided;
  4. The continuous use of the trademark;
  5. The widespread reputation of the goods or services bearing the trademark;
  6. The number of countries protecting the trademark;
  7. The number of countries recognizing the trademark as well-known;
  8. The transfer price, licensing price, or investment capital contribution value of the trademark.

Not all of the criteria need to be evaluated simultaneously to recognize a mark as well-known, and additional criteria beyond those listed in Article 75 may be considered.

Q 18: Can geographical indications and other signs indicating the geographical origin of a product or service be protected under the trademark?

Geographical indications that indicate the origin of a product are usually place names, but they can also be other symbols of the locality (such as symbols, maps, flags, emblems, landscapes, special buildings of the locality, etc.), or any other signs.

Place names can be current names or historical names, official names or popular names of a geographical area (determined by administrative boundaries or geographical methods).

In principle, geographical indications and other signs indicating the geographical origin of a product or service that cannot be distinguished are not eligible for trademark protection. However, these signs can still be protected under a trademark in some special cases:

  • The sign is registered as a certification mark or collective mark with the permission of the competent state agency;
  • The sign, although a place name or a symbol of the locality, does not indicate the geographical origin of the product, because: (i) It has been used as a trademark and widely recognized as indicating commercial origin (ability to distinguish), losing its meaning of describing geographical origin; or (ii) The corresponding locality cannot be the place where the product is produced.

Q 19: What is a certification trademark? Who has the right to register a certification trademark?

A certification trademark is a trademark that the owner allows other organizations or individuals to use on their goods or services to certify certain characteristics of the goods or services, such as origin, materials, manufacturing process, service delivery method, quality, accuracy, safety, or other characteristics associated with the goods or services bearing the trademark.

An organization that is responsible for controlling and certifying the quality, characteristics, origin, or other criteria related to goods or services has the right to register a certification trademark, provided that it does not produce or trade in those goods or services. In the case of geographical indications or other signs indicating the geographical origin of local specialties of Vietnam, the use of such geographical indication or geographical origin for registration must be approved in advance by the competent state authority.

Q 20. What is a collective trademark? Who has the right to register a collective trademark?

A collective trademark is a trademark used to distinguish goods or services of members of an organization who are the owners of the trademark from goods or services of organizations or individuals who are not members of that organization.

A legal entity that is established legally has the rights to register a collective trademark for its members to use according to the regulations of using the collective trademark. In the case of signs indicating the geographical origin of goods or services, the organization that has the rights to register the collective trademark is the collective organization of organizations and individuals engaged in production and business in that locality.

The above-mentioned collective organization must have at least 2 members and be established in accordance with the law. Its members must operate independently and have their own goods and services. The collective organization has the right to register a collective trademark according to current regulations, including:

  1. Cooperative unions; cooperatives under the provisions of the Cooperative Law, if the Charter specifies that members have independent production and business activities;
  2. Groups of companies under the provisions of the Enterprise Law;
  3. Associations under the provisions of the law on associations, if the Charter specifies that members of the association have independent production and business activities.

Q 21. What is special about the application for registration of geographical indications and/or collective marks compared to a application for registration of ordinaryt trademark?

In addition to the minimum documents required for a regular trademark application, the following documents are required for an application for registration of geographical indications and/or collective marks:

  1. Regulation for using the geographical indications/ collective marks;
  2. Description of the specific characteristics or quality (or specificity) of the product bearing the mark (if the registered mark is a collective mark used for a product with specific characteristics or is a geographical indication for product quality or geographical origin);
  3. Map of the geographical area (if the registered mark is a geographical indication for the geographical origin of a local specialty products, or if the collective mark or geographical indication contains a place name or other signs indicating the geographical origin of the products);
  4. Document from the provincial or centrally-governed city People’s Committee allowing the use of a place name or other signs indicating the geographical origin of a local specialty product for registration of a geographical indications/ collective marks.

Q 22:  How long does trademark protection last? Is it necessary to file any proof of use of trademark to maintain the registration?

  1. The Certificate of Trademark Registration will take effect in the whole territory of Vietnam as from the granting date until the end of ten years from the filing date, and can be renewed multiple times consecutively, each time for ten years.
  2. Although it is not mandatory, the law stipulates that the owner of a registered trademark must use it in commerce. Failure to do so may render the mark vulnerable to invalidation through a third-party’s 5-year consecutive non-use-based termination action against the mark.

In an invalidation proceeding, the burden of proof for 5-year consecutive non-use lies with the third party. If the registrant fails to provide a substantiated counterstatement with valid evidence, the mark will be deemed non-used, and its validity will be terminated from the date on which the IP Office’s decision on the invalidation of the trademark registration takes effect.

Q 23: What are the cases where the validity of the trademark registration may be terminated?

Validity of the trademark registration may be terminated wholly or partially in the following cases:

  1. The owner of trademark registration does not pay the fees for the renewal of the validity of the registration as prescribed;
  2. The trademark registration owner declares to abandon the trademark ownership;
  3. The trademark registration owner no longer exists or is no longer in business without a legal successor;
  4. The trademark is not used by the owner or the authorized user continuously for five years prior to the date of the request for termination without any legitimate reason, except where the use begins or resumes at least three months before the date of the request for termination;
  5. The trademark registration certificate owner for a collective trademark fails to control or control effectively the implementation of the collective trademark usage regulations;
  6. The trademark registration owner for a certification trademark violates the usage regulations of the certification trademark or fails to control or control effectively the implementation of the usage regulations of the certification trademark;
  7. The use of the protected trademark for goods or services by the trademark owner or authorized person causes consumers to misunderstand the nature, quality, or geographical origin of such goods or services;
  8. The protected trademark becomes a common name of the goods or services registered under such trademark.

Q 24: What are the cases where the trademark registration may be invalidated?

  1. The trademark registration shall be entirely invalidated in case the applicant registers the trademark with bad faith. The period for requesting the invalidation of the validity in this case shall be throughout the protection term.
  2. The trademark registration shall be entirely or partially invalidated if the entire or a part of the registration does not meet the provisions of this Law on registration rights, protection conditions, amendment, supplementation of applications, the principle of first filing in the following cases:
    • The applicant does not have the right to register and is not transferred the right to register the trademark;
    • The trademark does not meet the protection conditions;
    • The amendment or supplementation of the trademark application expands the scope of the trademark or changes the nature of the trademark required for registration in the application.

The period for exercising the right to request for the invalidation in these cases is five years from the date of granting the protection certificate or from the date of international trademark registration having effect in Vietnam.

  1. If the trademark registration is entirely or partially invalidated, the invalidated part or the entire protection certificate shall not have legal effect from the date of granting the certificate.

GEOGRAPHICAL INDICATIONS

Q 25: What is a geographical indication (“GI”)? What are the conditions for protecting a GI?

A geographical indication (“GI”) is a sign used to indicate the geographical origin of a product from a specific area, region, or country.

A GI is protected if it meets the following conditions:

  1. The product bearing the GI has a geographical origin from the corresponding area, region, or country of the GI;
  2. The product bearing the GI has a reputation, quality or characteristic mainly determined by the geographical conditions of the corresponding area, region, or country of the GI;
  3. Homonymous GIs are protected if they meet the general conditions for protected geographical indications and are actually used in a manner that does not mislead consumers about the geographical origin of the product bearing the GI, and ensure fair treatment between organizations and individuals producing products bearing the GI.

The following objects are not protected under the name of a GI:

  1. Names, indications that have become generic names of goods according to the perception of relevant consumers in Vietnam;
  2. Foreign GIs that are not protected in their home country, have ceased protection or are no longer in use;
  3. GIs that are identical or similar to a registered trademark, or have been filed for registration of a trademark with an earlier filing date or priority date, and using the GI would likely cause confusion about the commercial origin of the goods;
  4. GIs that create misunderstandings for consumers about the true geographical origin of the product bearing the GI.

Q 26: Who owns the rights to ownership, management, and use of GIs in Vietnam?

The owner of GIs in Vietnam is the State.

The State directly exercises the management rights over GIs or delegates the management rights to organizations representing the interests of all organizations and individuals who have been granted the right to use GIs.

The State grants the right to use GIs to organizations and individuals who produce products with GIs in the corresponding locality and bring those products to the market.

Q 27: Who owns the registration rights of GIs in Vietnam?

The registration rights of GIs in Vietnam belong to the State. The State allows organizations and individuals to produce products with GIs, collective organizations representing those organizations and individuals, or local administrative management agencies where the GIs are located to carry out the registration of GIs. Organizations and individuals who carry out the registration of GIs do not become the owners of those GIs.

Q 28. What documents are included in the GI registration dossier?

The GI registration dossier includes at least the following documents:

  1. Documents, specimens, and information identifying the GI to be protected, specifically including:
    • The name, sign indicating the GI;
    • Products bearing the GI (each GI registration application can only be registered for one GI used for one product).
  2. A description of the specific characteristics, quality, and reputation of the product bearing the GI.
  3. The corresponding geographical area map for the GI;
  4. Documents from the provincial or centrally-run city People’s Committee allowing the use of geographic names or other signs indicating the geographical origin of local specialties to register the GI;
  5. Documents proving that the GI is being protected in the country where the GI is registered, if it is a foreign GI;
  6. For homonymous GIs, explanatory documents on usage conditions and the manner of presenting the GI to ensure the ability to distinguish between the GIs.
  7. Letter of Authorization, if the application is filed through an IP Agent.

Q 29. How to determine the level of reputation, quality, and characteristics of geographical indication products?

The reputation of geographical indication products is determined by the level of consumer confidence in that product through the widespread awareness and selection of that product by consumers.

The quality and characteristics of geographical indication products are determined by one or more qualitative, quantitative, or sensory indicators of physical, chemical, and microbiological properties, which can be tested by appropriate technical means or experts.

Q 30: What are the requirements that the description of a product’s characteristics, quality, and reputation in an application for a geographical indication (GI) must meet?

The description of the characteristics/quality/reputation of the product must include the following essential information:

  1. Specific characteristics/quality of the GI product determined by the natural conditions, human factors, defined by sensory, qualitative, quantitative criteria related to physical, chemical, biological properties that can be checked by technical means or by experts according to a specific testing method; and/or
    • The reputation of the GI product determined through its wide recognition among relevant consumers, which can be verifiable; and
    • The natural conditions and human factors that contribute to the unique characteristics/quality, reputation of the GI product, including unique features in terms of meteorology, hydrology, geology, topography, ecosystem, and other natural conditions; unique features of the production skills and techniques of local producers, including traditional production processes; and
    • The organic relationship between the specific characteristics/quality, reputation of the GI product and natural conditions, human factors.
    • Information on the mechanism of self-checking the specific characteristics/quality of the product.
  2. The description of the characteristics/quality/reputation of the product must be accompanied by documents proving that the information on characteristics/quality/reputation is based on evidence and verification (testing results, research, investigation, etc.).

Q 31. How long does geographical indication protection last?

The GI registration certificate will take effect throughout the territory of Vietnam and will be valid indefinitely from the granting date.

INDUSTRIAL DESIGNS

Q 32. What is an Industrial design? What are the conditions for Patentabilty of Industrial Design?

Industrial design is the external appearance of a product or a part of a complex product, which is represented by the shape, lines, colors, or the combination thereof and visible during the use of the product or the complex product.

Industrial design is protected if it meets the following requirements: (i) novel; (ii) inventive; and (iii) Industrial applicability.

Novel

  • : An industrial design shall be considered novel if it significantly differs from other industrial designs that are already publicly disclosed through use or by means of written descriptions or in any other form, inside or outside the country, prior to the filing date or the priority date, as applicable, of the industrial design registration application.
  • Inventive: An industrial design shall be considered involving an inventive step if, based on industrial designs already publicly disclosed through use or by means of written descriptions or in any other form, inside or outside the country, before the filing date or the priority date, as applicable, of the industrial design registration application, it cannot be easily created by a person with average knowledge in the art.
  • Industrial applicability: An industrial design shall be considered susceptible of industrial application if it can be used as a model for mass manufacture of products with appearance embodying such industrial design by industrial or handicraft methods.

Q 33: What are the objects that are not protected under the Industrial design?

The following objects are not protected under the Industrial design:

  1. The external appearance of a product that is required by the technical characteristics of the product;
  2. The external appearance of civil or industrial construction works;
  3. The appearance of a product that is not visible during the use of the product.

Q 34: Who owns the registration rights of Industrial design in Vietnam?

The following organizations and individuals own the rights to register Industrial design:

  1. The author(s) who created the Industrial design through their own effort and expense.
  2. Organizations and individuals who invest in funding and material resources for the author(s) under the form of outsourcing or hiring, except for cases where the parties have other agreements or where the Industrial design is the result of scientific and technological tasks using state budget.
  3. In cases where multiple organizations or individuals together create or invest in creating Industrial design, all those organizations and individuals have the right to register, and such registration can only be performed if all of them agree.
  4. Organizations and individuals with the registration right mentioned above have the rights to transfer the registration rights to other organizations or individuals through a written contract, for inheritance or succession as provided by law, including cases where they have already submitted the registration application.

Q 35. What documents are required in the application for registration of Industrial design?

  1. A Description of Industrial Design (comprising name of Design, Field in which Design is being used, closet known Design of the same product bearing the proposed Design (if any), listing photos or drawings in order, description section shall present all special shaping features, and request for protection);
  2. Photographs/drawings of the industrial design. A set of drawings/photos normally comprising: Perspective view, Front view, Rear view, Right view, Left view, Top view, Bottom view.
  3. Power of Attorney (if submitted through an IP Agent).

Q 36: What is the timeline for obtaining an Industrial design protection in Vietnam?

  • Formality examination: 1 month from filing date;
  • Publication of application: within 2 months from the date of acceptance as to form;
  • Substantive examination: 7 months from publication date of application;
  • Granting the patent: within 01 month from the date of paying the granting fee.
  • Estimated time for obtaining industrial design patent: 10-12 months;
  • The deadline for submitting the priority document(s) is 3 months from the filing date.

Q 37: Time limit for oppositions against the Industrial design applications in Vietnam?

Time limit for the opposition against an industrial design application will be just available within 04 months as of its publication in the Industrial Property Gazette.

If the interested party fails to file the Opposition in due time, he is still able to submit his written opinion to bring facts to the IP Office by a so-called “Third party observation”/ ”Observations” procedure in respect of the registrability of an application. There is still no time limit for the observations provided that the Application has not been registered or finally refused. The opinions will be treated just as a referential source for the IP Office’s examination. Therefore, the person who submitted the written opinions is not in the position of an opposing party who may receive any official responses/update on the Application examination result of the IP Office.

Q 38. Is multiple industrial design application permitted?

In Vietnam, a multiple industrial design application is permitted under two circumstances: (i) some embodiments (variants) of design or (ii) designs of products in a set of products to be used together or to perform a general purpose.

The embodiments or designs of products in a set of products filed within a single application must share a single general inventive concept and should not have significant differences.

Q 39. How long does Industrial design protection last?

A patent for Industrial design will take effect in the whole territory of Vietnam as from the granting date until the expiry of 05 years counting from the filing date and it is renewable for 2 times, each for every 05 years.

PATENTS/ UTILITY MODELS

Q 40. What is an Invention? What are the conditions for protection of an Invention?

An Invention is a technical solution in the form of a product or process that solves a specific problem by applying natural laws.

An invention shall be protected by mode of Patent when it satisfies the following conditions:

  • Novel;
  • Inventive;
  • Industrial Applicability.

Unless it is a common knowledge, an invention shall be protected by mode of Utility Model when it satisfies the following conditions:

  • Novel;
  • Industrial Applicability.

Novel: An invention is considered novel if it does not fall into one of the following cases:

  • Being publicly disclosed in the form of use, written description, or any other form inside or outside the country before the filing date of a patent application or before the priority date in case a patent application claims priority right.
  • Being disclosed in another patent application having an earlier filing date or priority date but published on or after the filing date, or priority date of that patent application.

Inventive (not applicable to utility models): An invention is considered inventive if, in relation to technical solutions already disclosed to the public by use, written description, or any other means inside or outside Vietnam prior to the date of filing, or the priority date where priority is claimed, of the patent application, it represents an inventive step that cannot be easily accomplished by a person skilled in the art.

Industrial applicability: An invention is considered to have industrial application if it can be used in mass production or manufacturing of the product, or if the procedure that is the subject of the invention can be repeated to produce consistent results.

Q 41: What can not be Patentable?

  1. Scientific discoveries or theories, mathematical methods;
  2. Chemes, plans, rules and methods for performing mental acts, training domestic animals, playing games and doing business; computer programs;
  3. Presentations of information;
  4. Solutions of aesthetic characteristics only;
  5. Plant varieties, animal breeds;
  6. Processes of plant or animal production that are principally of a biological nature, other than microbiological processes; and
  7. Human and animal disease prevention methods, diagnostic and treatment methods.

Q 42: Who has the right to register the inventions?

The following organizations and individuals own the rights to register the Inventions:

  1. The author who creates the invention with their own effort and expense.
  2. Organizations and individuals who invest funds and material resources for the author under the form of employment, hiring, or managing genetic resources, providing genetic resources, traditional knowledge about genetic resources under contracts for access to genetic resources and benefit-sharing, except in cases where the parties have agreed otherwise or the invention is the result of scientific and technological tasks using state budget funds.
  3. In the case where many organizations and individuals jointly create or invest in creating the invention, all of them have the right to register and the registration can only be carried out if all of them agree.

The organizations and individuals mentioned above have the right to transfer the registration right to other organizations and individuals under a written contract, to inherit or be inherited according to the provisions of the law, including cases where the registration application has been submitted.

Q 43: What are the requirements for a Patent application?

  1. Patent specifications: including Description, Claims, and Drawings (if any);
    • The Description must fully and clearly present the nature of the invention according to the following contents: Title of invention; Field of use of the invention; Technical state of the field of use of the invention; Technical essence of the invention; Brief description of accompanying drawings (if any); Detailed description of the implementation options of the invention;, Examples of implementing the invention; The benefits (effectiveness) that can be achieved.
  2. Claims: separated into a separate page after the Description. Claims are used to determine the scope of industrial property rights for the invention. Claims must be presented concisely, clearly, and suitable for the Description and Drawings, in which the new signs of the claimed object must be clarified.
  3. Drawings, diagrams (if any): separated into a separate page.
  4. Abstracts: not exceeding 150 words and must be separated into a separate page.
  5. Power of Attorney (if filed through an IP Agent).

Q 44: What is the timeline for obtaining a Patent in Vietnam?

  • Within one month from the filing date, patent applications will be examined for the formality.
  • Accepted applications will be published for opposition purposes eithe r within 19 months from the priority date (or filing date, if no priority is claimed) or within two months from the date of acceptance as to form, whichever is later. PCT-derived applications will be published within two months from the date of acceptance as to form.
  • Substantive examination will be conducted within 18 months from the date of publication of the application or the filing date of the Request for Substantive Examination, whichever is later.
  • If the application requires re-examination or re-consideration, the time limit for such examination will be two thirds of the initial examination period.
  • For national applications, the estimated time frame for obtaining a patent in smooth cases is around 36-42 months from the priority date, while for PCT-derived applications, it is approximately 22-30 months from the due date of entry into the national phase.
  • PCT applications have a duration of 31 months from the priority date or the international filing date (if no priority is claimed) to enter the Vietnam national phase.

Q 45: Time limit for opposition against the Patent application in Vietnam?

There will be a time limit for the opposition, namely, an opposition against a patent application will be available within 09 months as of its publication date.

If the interested party fails to file the Opposition in due time, he is still able to submit his written opinion to bring facts to the Office by a so-called “Third party observation”/”Observations” procedure in respect of the registrability of an Application. There is still no time limit for the Observations provided that the Application has not been registered or finally refused. The opinions will be treated just as a referential source for the IP Office’s examination. Therefore, the person submitted the written opinions is not in the position of an opposing party who may receive any official responses/update on the Application examination result of the IP Office.

Q 46. How long does Patent/ Utility Model protection last?

Patents are valid for 20 years from the filing date, while Utility Models have a term of 10 years from the filing date. They will take effect throughout the territory of Vietnam.

Q 47. What are the cases where the validity of the patent may be terminated?

The validity of patent shall be terminated in Vietnam in the following cases:

  • The owner fails to pay the annuities;
  • The owner declares relinquishment of the industrial property rights;
  • The owner no longer exists (due to personal death, business dissolution, or bankruptcy) and does not have a lawful heir;
  • The patent’s protection period of 20 years has expired.

Q48. What are the cases where the validity of patent may be invalidated?

In Vietnam, the validity of patentmay be invalidated in the following cases:

  • The application is filed against regulations on security control. Wherein, Inventions in technical fields that affect national defense and security, created in Vietnam and the registration of which is the right of a Vietnamese citizen who resides in Vietnam or an organization established under Vietnam’s Law may only be filed for invention registration overseas if the invention registration has been filed in Vietnam in order to undergo security control.
  • The invention is directly created from a genetic resource or traditional knowledge about a genetic resource, but the registration application does not disclose or accurately disclose the origin of the genetic resource or traditional knowledge about the genetic resource.

LAYOUT DESIGNS

Q 49: What is layout-designs? Conditions of protection for layout-designs?

Layout-design of semiconductor integrated circuit (“layout-design”) means a three-dimensional disposition of circuit elements and their interconnections in a semiconductor integrated circuit.

The design layout is protected if it meets the following conditions: (i) Originality, and (ii) Commercial novelty.

Q 50: Originality of layout-designs?

  1. A layout-design shall be considered original if it satisfies the following conditions:
    • Being result of its author’s creative labor;
    • Having not been widely known among creators of layout-designs or manufacturers of semiconductor integrated circuits at the time of its creation.
  2. A layout-design that is a combination of elements and common interconnections shall be considered to be original only if such combination, taken as a whole, is original according to the provisions of section an above-mentioned.

Q 51: Commercial novelty of layout-designs?

  1. A layout-design shall be considered commercially novel if it has not yet been commercially exploited anywhere in the world prior to the filing date of the registration application.
  2. A layout-design shall not be considered having lost its commercial novelty if the layout-design registration application is filed within 2 years from the date it was commercially exploited for the first time anywhere in the world by the person who has the right to register it or his/her licensee.
  3. Commercial exploitation of a layout-design mentioned in section b above-mentioned means any act of public distribution for commercial purposes of a semiconductor integrated circuit produced by incorporation of such layout-design, or a commodity containing such semiconductor integrated circuit.

Q 52: What are the objects that are ineligible for protection as layout-designs?

The following objects are not protected as layout-designs:

  • Principles, processes, systems, methods performed by semiconductor integrated circuits;
  • Information, software contained in semiconductor integrated circuits.

Q 53: Who has the right to register layout-designs?

  1. The organizations and individuals who have the rights to register layout-designs include:
    • The author who creates the layout-designs with their own effort and cost.
    • Organizations and individuals who invest in funds and material means for the author under the form of commission, contract or in case the layout-designs is a result of scientific and technological tasks using the state budget.
  2. In the case of multiple organizations or individuals jointly creating or investing in the creation of the layout-designs, all of these organizations and individuals have the right to register, and the registration can only be done if all of them agree.
  3. The above-mentioned organizations and individuals have the rights to transfer the registration right to other organizations and individuals under a written contract, for inheritance or succession as prescribed by law, even if they have already submitted the registration application.

Q 54: How long does layout-designs protection last?

The certificate of registration for a layout-design is valid from the date of issuance and expires on the earliest date of the following:

  • Ten years after the date of application;
  • Ten years after the date the layout-design is first commercially exploited anywhere in the world by the person who has the rights to register or the person authorized by that person;
  • Fifteen years after the date the layout-design was created.

TRADE NAMES

Q 55: What is a trademark name? What are the protection conditions for a trademark name?

A trademark name is the name used by an organization or individual in business activities to distinguish that business entity with others in the same industry and geographical area.

A trademark name is protected if it has the ability to distinguish the business entity using that trademark name from others in the same industry and geographical area.

Q 56: Which entities are not protected under the trade name?

The following entities are not protected under the trade name: Names of state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, or other entities unrelated to business activities are not protected under the trade name.

Q 57: Please distinguish between Trademark and Trade name?

Trademark and Trade name are two different objects of industrial property rights. These two objects can be distinguished based on the following key differences:

Criteria Trademark Trade name
Concept A sign used to distinguish goods or services of different organizations or individuals. The name used by an organization or individual in business activities to distinguish their business entity from others in the same field and area of business.
Funtion To distinguish goods or services. To distinguish their business entity from others in the same field and area of business.
Signs It is a visible sign in the form of letters, words, drawings, images, three-dimensional shapes, or a combination thereof, expressed in one or more colors or in graphic form as sound marks. It is only a sign consisting of linguistic elements (a collection of letters, pronounceable and meaningful). It includes two components: description (briefly describing the type of business) and differentiation (distinguishing this business from other businesses).
Basis for arising the rights Established on the basis of the decision to grant a certificate of protection by the competent state agency in accordance with the registration procedures prescribed by the IP Law or recognized as an international registration in accordance with international treaties to which the Socialist Republic of Vietnam is a member. Established on the basis of lawful use.
Period of protection 10 years from the date of application, it can be extended multiple times in succession, each time for 10 years. It is protected as long as the owner continues to operate the production and business under that trade name.
Scope of protection throughout the territory of Vietnam. The protection is within the business sector and geographical area of operation.
Ability to transfer rights. It can be assigned the ownership rights or transferred the rights to use. The rights to use cannot be transferred and the right to ownership can only be transferred along with the transfer of the entire business and commercial activities carried out under that trade name.

TRADE SECRETS

Q 57. What is a trade secret? What are the conditions for protecting trade secrets?

Trade secret is information obtained from financial investment, intellectual property, not disclosed and capable of being used in business.

Trade secrets are protected if they meet the following conditions:

  1. It is not common knowledge and is not easily accessible;
  2. When used in business, it will give the holder of the trade secret an advantage over those who do not hold or use that trade secret;
  3. The owner is able to maintain the secrecy of the trade secret by necessary measures to prevent the trade secret from being disclosed or easily accessed.

Q 58. What are the objects that are ineligible for protection as trade secrets?

The following secrets are not protected under the trade secrets:

  1. Secrets about personal identity;
  2. Secrets about state management;
  3. Secrets about national defense, security;
  4. Other secret information unrelated to business.

[dflip id=”4294″][/dflip]

In discussions with enterprises, in Official Letter No. 4082/TCT-QLN, the General Department of Taxation had affirm that the enterprise where the individual transfers their capital contribution is responsible for filing and paying the tax on behalf of the individual if the enterprise cannot prove that the individual have fulfilled their personal income tax obligations.

Specifically, the law stipulates that a resident individual who transfers capital contribution must declare taxes on each transfer, regardless of whether any income is generated. In cases where an enterprise, during the process of changing the list of capital-contributing members due to capital transfer, does not have documents proving that the individual transferring the capital has completed their personal income tax obligations, that enterprise is responsible for filing and paying the tax on behalf of the individual.

The tax obligation arises from the time the individual transfers their capital, and the organization that files and pays the tax on behalf of the individual must fully comply with the regulations on tax declaration and payment as stipulated for taxpayers.

Accordingly, enterprises with individuals transferring capital must ensure that these individuals strictly comply with tax declaration and payment obligations. Additionally, the enterprises should retain relevant documents to verify that these individuals have fulfilled their personal income tax obligations.

Currently, the Government is finalizing and gathering opinion on a draft decree stipulating a reduction in land lease fee for 2024 to boost production and business.