Improving IP policy: A motivation for businesses’ innovation and creativity

We have seen in recent years that science, technology, innovation, and intellectual property are becoming more and more important in the process of development. Any company that expands internationally has to rely on intellectual property (IP). Trademarks, patents, copyrights, industrial designs, and corporate secrets are examples of the latter.

But according to VCCI Vice President Vo Tan Thanh, IP violations in Vietnam are still complex and have a number of negative effects, including the following: a large number of businesses, particularly small and medium-sized ones, lack the resources necessary to protect their IP; counterfeit, fake, and poor products are common, resulting in significant losses for legitimate businesses; and unfair competition and trademark and copyright infringement erode consumer confidence.

International surveys indicate that, in comparison to many other nations in the region, Vietnam continues to have a high percentage of IP infringement. According to VCCI Vice President Vo Tan Thanh, this not only results in financial losses but also has an impact on Vietnam's international integration process, investment climate, and national image.

Vietnam has established and progressively enhanced its IP legal framework in recent years, according to VCCI Vice President Vo Tan Thanh. When Vietnam joined the WTO and new-generation free trade agreements, including the CPTPP, EVFTA, and RCEP, it also made extremely high international pledges regarding IP protection. Vietnam's legal system is improving and becoming closer to international norms thanks in large part to this.

Nevertheless, despite the aforementioned advancements, there are still certain restrictions on the administration and enforcement of IP rights, including inadequate monitoring, detection, and handling of IP infringements due to a lack of synchronous coordination among government authorities; inadequate deterrent effect of sanctions on IP infringements; and businesses and consumers' knowledge of IP protection is still insufficient. Support systems for companies, particularly SMEs, to get legal resources and expert counsel continue to fall short of real requirements.

According to VCCI Vice President Vo Tan Thanh, it is important to enhance policies, boost the efficacy of legal enforcement, and establish a close coordination mechanism between government authorities, business associations, enterprises, lawyers, and press agencies.

Data from Vietnam's National Office of Intellectual Property and Market Management Agencies indicates that trademark infringement is getting worse. 1,430 trademark infringement lawsuits were resolved in 2022. 1,256 cases involving IP infringement and counterfeit goods were handled in 2024. Over 3,270 administrative infractions pertaining to IP rights infringement and counterfeit goods were addressed by government officials in the first half of the year.

According to lawyer Mai Thi Thao, Deputy Director of TAT Law Firm, trademarks are essential intangible assets that improve competitiveness and market position by assisting companies in differentiating their goods, establishing brand recognition, and fostering trust in the context of global integration and the growth of the creative economy. Nonetheless, the business community and government authorities are facing significant difficulties as a result of the striking rise in trademark infringement. Trademark infringement primarily takes the following forms: copying packaging and designs; counterfeiting trademarks; affixing well-known brands to subpar products; registering identical or similar trademarks at Vietnam's National Office of IP; and the proliferation of digital media and e-commerce has created new avenues for brand infringement.

Lawyer Thao claims that a trademark is a fundamental asset in the creative economy, representing not just the company's brand but also the culmination of its long-term investment, innovation, and creativity. The negative effects of trademark infringement extend beyond only the financial realm; they can affect an organization's social standing and long-term growth.

Lawyer Thao added that in TAT Law Firm's consulting practice, one of the most typical cases today is the infringement of the Binh Minh Plastics JSC's trademark that has built up its reputation for over 50 years and is facing counterfeiting because of the difference in the term "Viet".

Binh Minh Plastic Joint Stock Company (BMP), originally known as Binh Minh Plastic Joint Venture Enterprise, was founded on November 16, 1977, under the Ministry of Industry's Corporation of Fine Arts. This business changed its name to Binh Minh Plastic Joint Stock Company in 2004 following equitization. One of the top companies in the industry for producing and selling plastic pipes is Binh Minh Plastics JSC. After operating continuously for about 50 years, the firm has established a system of protected trademarks in Vietnam, which usually include "BINH MINH," "BM," "BM PLASCO," "BINH MINH PLASTIC PIPE," and "BINH MINH PLASTIC."

According to Lawyer Thao, to overcome present obstacles in brand protection, improving regulations and enforcement procedures is an important demand. First and foremost, nevertheless, the IP Court's operational mechanism must be further refined in accordance with Resolution No. 81/2025/NQ-UBTVQH15, which assigns the People's Court of Region 2 (Hanoi) and the People's Court of Region 1 (Ho Chi Minh City) the ability to do so. The creation of these two adjudication centers is a significant advancement that shows the commitment to enhancing proficiency in managing administrative issues pertaining to intellectual property and technology transfer, as well as civil and business disputes. However, a lot of factors need to be considered in order for this process to be genuinely successful, including:

The first step is to guarantee that IP courts have specialized human resources by providing judges, court clerks, and other staff with thorough training in IP, technology, and business.

Second, establishing a speedy and open litigation procedure to reduce the time needed for adjudication, so paving the way for enterprises to swiftly have their legal rights upheld.

Third, a system for publishing judgments and decisions pertaining to IP should be put in place. This will help to create clear legal precedents and improve the predictability and stability of enforcement.

Last but not least, improved collaboration between specialized courts and government agencies like the Economic Police, Market Management forces, and Vietnam's National Office of IP is also essential to guaranteeing uniformity and efficacy in the protection of IP rights.