Vietnamese Cooperatives Harness Patents to Boost Market Competitiveness

For many years, intellectual property protection within Vietnam's cooperative sector primarily focused on registering trademarks and collective brands. However, a growing number of cooperatives are now expanding their IP strategies to include patents and utility solutions. This evolution reflects a broader ambition to protect technological innovations and production know-how, thereby adding value to their products and competing more effectively in increasingly sophisticated markets.

Traditionally, trademarks and collective brands have been the dominant forms of IP protection among cooperatives, emphasizing brand recognition. The recent shift towards patent protection signals a strategic effort to move up the value chain through innovation.

A notable example is Kỳ Như Cooperative, located in the Mekong Delta city of Cần Thơ. The cooperative recently gained attention after the Intellectual Property Office of Vietnam formally accepted two coordinated patent applications.

One patent application covers a method for producing canned, ready-to-eat featherback fish products, while the other pertains to the finished canned food product itself. This dual application approach represents a comprehensive IP strategy that safeguards both the manufacturing process and the final commercial product.

According to the cooperative, the patented inventions establish a tightly controlled production process. This process regulates temperatures at multiple stages, from raw material treatment to a two-stage fish-paste mixing technique designed to achieve the product's distinctive texture.

Additionally, the process incorporates intelligent hot-sauce filling and deaeration technology, which removes oxygen from packaging. This innovation naturally extends the product's shelf life without the use of preservatives.

Industry experts highlight that protecting both production technology and the commercial product creates a robust legal framework. This framework helps cooperatives like Kỳ Như establish sustainable competitive advantages in the marketplace.

The economic benefits of proactive IP protection can be significant. Specialists estimate that cooperatives focusing on industrial property rights such as patents and utility solutions can increase the commercial value of their products by 25 to 40 percent compared to those lacking legal protection.

Beyond value enhancement, patents serve as legal shields against counterfeiting, imitation, and IP infringement. They also function as gateways for cooperatives to access major supermarket chains and pursue formal exports to demanding markets such as the European Union, the United States, and Japan.

These markets impose stringent requirements on product quality, traceability, and intellectual property protection, making patents essential for market entry and sustained success.

Recognizing the critical role of intellectual property in enhancing competitiveness, the Vietnamese Government has introduced various policies to support enterprises and cooperatives in creating and protecting intellectual assets.

A key initiative is the Intellectual Property Development Programme to 2030, approved under Decision 2205 by the Prime Minister. This programme aims to support IP protection for at least 40 percent of products participating in the "One Commune One Product (OCOP)" programme, with a focus on technical solutions and inventions demonstrating practical applications within cooperatives.

Further support is embedded in the 2023 Law on Cooperatives, which took effect on July 1, 2024. This legislation reinforces the cooperative sector's capacity to innovate and protect intellectual property, aligning with national goals to boost competitiveness through innovation.

As Vietnam's cooperative sector embraces patents and utility solutions, it signals a transformative approach to intellectual property that promises to enhance product value, safeguard innovations, and open new market opportunities both domestically and internationally.