Intellectual Property Considerations

IP Laws enforcement and Outsourcing to Vietnam

Vietnamese's legal system is moving in step with international IP protection standards. As a general matter, a foreign company can intervene, protect, and enforce its IP rights related to software developed in Vietnam with reasonable commercial certainty.

The signing and ratification in December of 2001 of the long-awaited Bilateral Trade Agreement between Vietnam and the United States marked a new development in bilateral trade and economic relations. The Agreement finally completed the process of economic normalization between Vietnam and the US, and was also a significant step toward Vietnam's accession into the World Trade Organization.

During the last few years, essential improvements in the IP protection have been made in Vietnam. The Vietnamese authorities have realized that a sound system of IP protection is important for a favourable business environment. Vietnam entered the WTO in January 2007 as the 150th member. Prior to it’ saccession, Vietnam amended it’s IP Protection laws to bring it’s laws and regulations in line with the TRIPS agreement of the WTO. These laws were approved by the National Assembly on November 19, 2005 and became effective on January 1st, 2006.

Stronger enforcement measures have been introduced in order to combat copyright infringement. Foreign copyright owners will receive legal protection equal to that of their Vietnamese counterparts in accordance with the new regulations for the implementation of the IP Protection Law. The new regulation allows foreign copyright owners to seek redress from local administrations.

Vietnamese government officials now understand why improving enforcement of software IP rights is in the national interest. Promoting the development of a local software industry is now a goal that motivates authorities to engage in sustained efforts to improve IP protection. Today, the Vietnamese government is thus more receptive to international efforts to improve IP protection as long as these efforts are congruent with domestic policies to strengthen local software industries and establish competitive supplier markets.