THE BUSINESS INFORMATION CENTER AT THE VIETNAM CHAMBER OF COMMERCE AND INDUSTRY

February 2004

   

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Issue No. 22
Access to land
:: Article  :: Viewpoints
 

Issue No. 21
The state capital
investment corporation
:: Article  :: Viewpoints
 

Issue No. 20
Streamlining the
business startup process
:: Article  :: Viewpoints
 

Issue No. 19
Effective Implementation of the new Enterprise and Investment Laws
:: Article  :: Viewpoints
 

Issue No. 18
Starting a business in Vietnam
:: Article  :: Viewpoints
 

Issue No. 17
Streamlining
Business Licensing
:: Article  :: Viewpoints
 

Issue No. 16
Women's entrepreneurship
:: Article  :: Viewpoints
 

Issue No. 15
Private Credit Bureaus
:: Article  :: Viewpoints
 

Issue No. 14
Efforts in improving business environment
:: Article  :: Viewpoints
 

Issue No. 13
Corporate governance
:: Article  :: Viewpoints
 

Issue No. 12
The common investment law
:: Article  :: Viewpoints
 

Issue No. 11
Private sector firms
:: Article  :: Viewpoints
 

Issue No. 10
The unified enterprise law
:: Article  :: Viewpoints
 

Issue No. 9
Investment incentives
in Vietnam
:: Article  :: Viewpoints
 

Issue No. 8
Business Environment in Vietnam - Overview 2004
:: Article  :: Viewpoints
 

Issue No. 7
Business Development Services
:: Article  :: Viewpoints
 

Issue No. 6
Local governance
& Economic growth
:: Article  :: Viewpoints
 

Issue No. 5
SOE Valuation
:: Article  :: Viewpoints
 

Issue No. 4
Corp. Social Responsibility
:: Article  :: Viewpoints
 

Issue No. 3
Trademark protection
:: Article  :: Viewpoints
 

Issue No. 2
The stock market
:: Article  :: Viewpoints

 

Issue No. 1
The revised draft Land Law
:: Article  :: Viewpoints

 

 

VIEWPOINTS
 
Weak mechanisms for protection  

from trademark infringements

 

  • Usually our turnover increases steadily, but there are periods of several months at a time where our turnover does not increase. The main reason for this is counterfeit products. The protection of trademarks depends very much on a company's relationship with officials in relevant government agencies. Most agencies don't seem to think that dealing with trademark infringement is their responsibility. In 2003, we received 33 official conclusions that 22 other businesses infringed upon our "Golden Pig" (animal feed) trademark, but punishment for these infringements were problematic. In some cases, decisions were made but not be implemented, for example the Hai Phong Market Control sub-Bureau found that Song Hong company based in Hanoi violated our company's trademark, but were unable to render punishment because they do not have the authority to do so in Hanoi. I would like the government to give full power and responsibility to a single agency, and hold one specific individual accountable. If responsibilities are spread out among various agencies and no specific individual is held accountable, I don't think counterfeit products can be dealt with effectively.

Mr. Nguyen Huu Loi, Chairman, Managing Director, VIC Co. Ltd.


  • In our country, both the Court and the administrative systems are involved in IP enforcement. The administrative system alone includes many government agencies—the Market Management Bureau, Science and Technology Inspection, Economic Police and Customs. Of the many authorities involved, it is hard to determine which one has primary responsibility. In other countries, administrative authorities are also involved in trademark enforcement but in general only one or at most two agencies—customs and the police—are involved. The Vietnamese model for market is based on that of China's, but no other country in the world uses this model. The number of authorities involved needs to be reduced in Vietnam.
    The maximum administrative fine of 100 million dong is too low a punishment to be an effective deterrent towards the trademark violator. Furthermore, a problem with the current regulations is that the punishment is limited to the specific violation, for example, a laundry detergent manufacturer that is found guilty of copying a competitor's trademark would only be required to dispose of the packaging that contains the violating trademark, but would still be allowed to keep the detergent, change the packaging and sell it. This is not an effective punishment.
    The improvement of the trademark enforcement system is an urgent task in the coming years to meet the requirements of WTO accession.

Mr. Tran Viet Hung, Deputy Director General,
National Office of Intellectual Property of Viet Nam


  • Companies that are victims of trademark infringements and consulting firms like ourselves always want the maximum penalty to be applied. At present, the maximum administrative fine is 100 million dong, and is to be applied to cases of organized violation involving a large volume of products and monetary values, but not large enough to warrant a criminal penalty. In reality, there have been many large-scale, organized violations…I don't understand why the maximum fine of 100 million dong has not been applied in practice.

Mr. Ho Vinh Thinh, Partner,
Ageless IP Attorneys & Consultants


  • One of the biggest problems is the situation of widespread and blatant trademark infringement. This feeds the perception that Vietnam is not interested in protecting IPRs and thus makes it less attractive to foreign investors. Vietnam has many regional competitors for investment, and corporate headquarters will continue to give preference to those countries where they believe IPRs are adequately protected.

Mr. Paul A. Norris, International Lawyer, Baker & McKenzie


  • One of the primary reasons for the abundance of imitation and counterfeit goods is the fact that Vietnamese businesses don't see the long-term and chase after short-term benefits. Another reason that is just as important is that Vietnam is still poor and thus the budget allocated to investigation of infringements and enforcement of laws is very small; the number of staff allocated to IP enforcement is few, their level of skills and expertise on the subject matter is limited; and the collaboration between relevant government offices is weak.
    Given the current situation, businesses should coordinate their efforts to protect themselves from trademark infringement by doing things like forming business associations, provide financial support for activities designed to detect the production of counterfeit and imitation goods, etc.
    Compared with other countries in the region, trademark protection in Vietnam is not the worst. However, we can and should do a better job at trademark protection if we want to have a competitive advantage in attracting foreign investment over other countries in the region such as Singapore, Thailand or Malaysia, all of which have much better trademark enforcement mechanisms in place.

Mr. Pham Vu Khanh Toan, Attorney-at-Law, Pham & Associates


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