How US Companies Can Protect Their Intellectual Property (IP) in Vietnam

Vietnam has become a strategic destination for US businesses across sectors like technology, manufacturing, pharmaceuticals, and consumer products. But with growth comes risk-particularly when it comes to protecting intellectual property (IP).

From trademark squatting to unauthorized use of software, US companies operating in or sourcing from Vietnam must take proactive steps to secure their IP assets. Relying solely on US-based registrations or informal business agreements isn’t enough. Vietnam follows a distinct IP regime, and enforcement requires local action.

This article outlines the legal tools and strategies US companies should know to protect their brands, inventions, content, and trade secrets in Vietnam.

Understanding Vietnam’s IP Legal Framework

Vietnam’s intellectual property system is governed primarily by the Law on Intellectual Property (amended 2009, 2019, and 2022), with related provisions in the Civil Code, Criminal Code, and Commercial Law. It provides legal protection for a range of IP categories including trademarks, patents, copyrights, industrial designs, and trade secrets.

To align with global standards, Vietnam has committed to several major international treaties:

  • TRIPS Agreement (WTO)
  • Paris Convention
  • Berne Convention
  • Madrid Protocol
  • Patent Cooperation Treaty (PCT)
  • CPTPP and RCEP, which enhance transparency and enforcement obligations

The National Office of Intellectual Property (NOIP) under the Ministry of Science and Technology (MOST) manages IP registration. Businesses must also understand the role of local courts, customs authorities, and inspectorates in enforcement.

Navigating this layered legal structure requires local expertise to ensure compliance and enforceability.

Trademark Protection for US Brands in Vietnam

Vietnam operates on a first-to-file system. This means whoever files the trademark first regardless of actual use, gets legal priority. US companies entering Vietnam must act quickly to protect brand names, logos, and slogans.

Key steps include:

  • Filing with the NOIP directly or through a local IP agent
  • Ensuring the mark does not conflict with existing registrations
  • Including Vietnamese transliterations if applicable to branding

Trademarks are valid for 10 years, renewable every 10 years indefinitely. If the mark isn’t used for 5 consecutive years, it may be subject to cancellation.

Risks US businesses should watch for:

  • Trademark squatting: Local parties registering marks identical or similar to well-known foreign brands
  • Unauthorized local use: Distributors or manufacturers using your brand without permission

A successful trademark strategy involves early registration, vigilant monitoring, and enforcement planning.

Patent and Industrial Design Protection

Vietnam offers legal protection for technical inventions and product designs, provided they meet specific originality and novelty criteria. Patent protection applies to:

  • Inventions: Technical solutions in any field
  • Utility solutions: Less inventive solutions but still novel and useful
  • Industrial designs: Unique visual appearance of a product

US applicants can file directly with the NOIP, or via the PCT system for global coordination. Key documentation includes a detailed description, claims in Vietnamese, technical drawings, and proof of inventorship.

Patent terms are:

  • 20 years from filing for inventions
  • 10 years for utility solutions and industrial designs

Patent enforcement in Vietnam is developing, but local registration is essential. Unregistered inventions are not protected even if registered in the US. Companies should also consider defensive publishing or trade secret protection where patentability is uncertain.

Copyright and Software Protection in Vietnam

Copyright protection arises automatically in Vietnam once an original work is created, including:

  • Literary works, articles, and presentations
  • Software code, databases, and UI/UX designs
  • Marketing assets, training materials, and manuals

Although registration is optional, it provides evidentiary value in court. The Copyright Office of Vietnam allows local or foreign applicants to register their works.

For US companies outsourcing software development or digital content, registration helps clarify authorship and ownership, particularly in disputes with employees or vendors. Contracts should explicitly define who owns the IP created under a project.

Licensing, sublicensing, or commercializing copyrighted materials also requires written agreements. These should include the scope, duration, and territory of use.

Protecting Trade Secrets and Know-How

Trade secrets encompass formulas, practices, processes, designs, or any confidential business information that gives a company a competitive advantage. In Vietnam, protection is only available if the company actively maintains confidentiality.

Legal protection is governed under both the IP Law and the Labor Code, which allows civil or even criminal action if misappropriation occurs.

Preventive strategies include:

  • Comprehensive NDAs with employees, contractors, and suppliers
  • Internal policies that classify and control access to confidential data
  • Digital security protocols to log and restrict access to proprietary systems
  • Exit procedures that remind departing staff of confidentiality obligations

While enforcement is possible, prevention is far more effective. Clear documentation, signed agreements, and internal compliance checks are crucial.

Enforcement Options: Civil, Administrative, and Criminal Remedies

Once registered, IP rights can be enforced in Vietnam through several channels depending on the nature of the infringement and the desired outcome.

Administrative remedies:

  • File complaints with agencies like Market Surveillance, Customs, or the Inspectorate of MOST
  • Quick action to seize counterfeit goods, issue warnings or fines
  • Useful for small-scale or time-sensitive cases

Civil litigation:

  • File suit in the People’s Courts to claim compensation, injunctions, or apologies
  • Best for disputes with substantial financial loss or ongoing infringement
  • Requires strong evidence and legal support

Criminal prosecution:

  • Applicable in cases of organized counterfeiting, piracy, or repeat violations
  • Penalties may include fines or imprisonment
  • Often coordinated with police and prosecutors

For US companies, the most effective approach is a layered strategy that combines registration, customs watchlists, and regular enforcement audits.

Customs Watchlists: A Practical Tool to Block Counterfeits 

One underutilized enforcement tool for US businesses is Vietnam’s customs monitoring system. Once a trademark is registered, rights holders can request Vietnam Customs to monitor imports or exports of goods suspected of infringing their IP. 

Key points: 

  • File an application with Vietnam Customs after registering your trademark 
  • Submit supporting documents like trademark certificates and product visuals 
  • Customs officials will intercept shipments that appear to infringe 

This measure is especially useful for companies in consumer goods, electronics, and fashion, where counterfeit or grey market goods often enter via ports. It provides a front-line defense and can complement litigation or administrative action. 

Case Study: IP Risk in Vietnam Manufacturing

Case background: A mid-sized US electronics firm contracted a Vietnamese Original Equipment Manufacturer (OEM) to produce parts using proprietary circuit board designs. The parties signed a supply agreement but did not localize the contract under Vietnamese law or register any IP rights in Vietnam.

Issue: Six months into production, the OEM began supplying identical products to other clients under a different brand. The US firm discovered this through a local distributor.

Resolution: The US company faced hurdles:

  • No local trademark or design registration
  • Vague confidentiality clauses in the contract
  • Jurisdiction clauses defaulted to US courts, complicating enforcement

Eventually, the US firm partnered with local counsel to:

  • File an industrial design registration to claim ownership
  • Issue a cease-and-desist through the Department of Science and Technology
  • Terminate the supplier and renegotiate contracts with local enforceability

Without localized IP protection and enforceable contracts, legal remedies are limited. Prevention through early registration and precise legal drafting is far more effective.

IP Protection in Manufacturing and Supplier Contracts

For US companies that manufacture in Vietnam, your supplier agreements are critical to IP protection.

OEM, Original Design Manufacture (ODM), and contract manufacturing relationships carry risk of:

  • Product design leakage
  • Reuse of molds or software
  • Copycat production for third parties

Key clauses to include in your contracts:

  • Ownership of tooling and designs
  • Non-use and non-disclosure obligations
  • Exclusive manufacturing clauses
  • Audit rights and penalties for breach

Also ensure:

  • All IP clauses are clearly drafted in both English and Vietnamese
  • Jurisdiction and dispute resolution clauses allow you to enforce terms locally

When properly structured, manufacturing contracts act as a legal shield against common forms of IP leakage.

Conclusion

For US businesses, protecting intellectual property in Vietnam isn’t just about compliance, it’s about preserving your competitive edge. With growing local and cross-border risks, IP protection must be built into your market entry and operational strategy.

That means early registration, well-drafted contracts, internal safeguards, and having trusted local advisors ready to act.

Le & Tran is recognized as a leader in Vietnam’s legal landscape, earning praise from top legal publications like Chambers, Legal500, and Benchmark Litigation, as well as being highly recommended by AmCham Vietnam and the US Consulate. Our top-ranked intellectual property lawyers are known for delivering practical and strategic solutions that protect your rights and interests. Whether securing trademark protection, drafting licensing contracts, or pursuing IP enforcement, we help international businesses safeguard their competitive edge. For professional support in protecting your intellectual property in Vietnam, contact us at info@letranlaw.com.