Vietnam Advances IP Law Reform to Enhance Asset Recognition and Commercialization

Vietnam is undertaking a comprehensive revision of its intellectual property (IP) law to better recognize, value, and commercialize intellectual property rights. The amendments, examined at the sixth session of the National Assembly Standing Committee in Hanoi on September 24, aim to modernize the legal framework in response to digital technology and artificial intelligence advancements.

A key proposal within the draft legislation is the abolition of 18 administrative procedures and the removal of five business conditions. This initiative is designed to reduce the time, costs, and compliance burdens faced by individuals and businesses when registering, establishing, and exercising intellectual property rights.

Additionally, the draft suggests transferring state management responsibilities for rights to plant varieties from the Ministry of Agriculture and Environment to the Ministry of Science and Technology. This shift is intended to consolidate IP management under a ministry more closely aligned with scientific and technological development.

National Assembly Vice President Nguyen Hong Dien emphasized the importance of substantive improvements accompanying the reduction of administrative procedures and business conditions. He cautioned that while some provisions in the draft reduce the number of procedures on paper, these changes may not translate into genuine reductions in time, costs, or compliance obligations for stakeholders.

Vice President Dien urged a thorough review of the draft to ensure that simplified procedures at the legislative level are not inadvertently recreated in sub-law documents. He also advocated for a stronger transition from pre-inspection to post-inspection methods and a move away from document-based management toward risk data-based management and increased accountability of relevant entities.

National Assembly President Tran Thanh Man highlighted the broader strategic direction of the revision, calling for a shift from merely protecting intellectual property rights to actively transforming them into assets and promoting their commercialization. He stressed the need to complete the legal framework to keep pace with digital technology and artificial intelligence developments.

President Tran called for unified and transparent guidance, particularly concerning intangible assets such as software, data, and digital brands. Establishing clear legal frameworks and recognition methods for these assets is crucial to enhancing the confidence of banks and investors when accepting intellectual property rights as collateral.

He further proposed exploring tax and credit incentives for businesses that use intellectual property as capital contributions. Strengthening training for accountants and auditors in accounting for intellectual property assets was also recommended to prevent businesses from holding valuable assets that remain unrecognized in their accounting systems.

The President emphasized prioritizing fast-track appraisal mechanisms for strategic sectors, including green technology, semiconductors, and artificial intelligence. He also called for reinforcing the responsibilities of intermediary service providers and digital platform operators in protecting intellectual property rights online.

The National Assembly Standing Committee is scheduled to continue discussions on the draft Cultural Industries Development Law and the draft amended Food Safety Law on the afternoon of September 24, as part of its ongoing legislative agenda.

These reforms reflect Vietnam's commitment to strengthening IP enforcement, which not only safeguards innovation but also boosts the confidence of businesses and investors in the country's intellectual property ecosystem.