1. Introduction
1.1. Outline of the Present IP System
1.2. Outline of the Present Economic Situation
2. Survey on Reforms toward IP-Based Economic Development
2.1. Brief History of Intellectual Property Laws and Policies in Vietnam 2.2. Identification of Reforms toward IP-Based Economic Development
3. Case Studies on Companies utilizing the IP System to Develop Business or Increase Economic Activity 3.1. Comparison of Company Data in Major Industrial Fields
3.2. Results of the Analysis
4. Analysis of Reforms that exerted Influence on Economic Development underpinned by the IP System using Economic Models
4.1. Impact of Economic Variables on IP Creation 4.2. Impact of the IP Regime on Economic Growth 4.3. Impact of the IP Regime on Foreign Direct Investment 4.4. Notes on Technical Issues
5. Discussion and Proposal References
1. Introduction
1.1. Outline of the Present IP System
On 29 November 2005, the National Assembly enacted a new law on intellectual property. Before that, under the Civil Code, there were only provisions on patents, utility solutions, industrial designs, trademarks and appellations of origin: protection of other IPRs was stipulated in several documents issued by the government. In addition to the type of IPRs covered by the Civil Code, the IP law of 2005 included provisions on circuit layout, geographical indications, unfair competition, trade names and trade secrets.
Enforcement of IPRs is considered to be the weakest point in Vietnam’s current IP protection system;
therefore, the IP law has devoted the whole of Part V to dealing with this matter.
Under this law, there are several government decrees providing guidelines for its implementation, e.g.
Decree 106/2006/ND-CP on administrative measures dealing with IP infringements; Decree 105/2006/ND-CP on the state management of IP, etc. The Ministry of Science and Technology (MOST) is the relevant authority for managing IP in Vietnam. MOST cooperates with other ministries and authorities to draft detailed guidelines for the implementation of IP law and government decrees. The National Office of IP (NOIP) under MOST is in charge of implementing management activities related to intellectual property.
However NOIP is only in charge of industrial property and general matters: other issues related to copyright are managed by the National Copyright Office under the Ministry of Culture, Sport and Tourism.
The Office for the Protection of New Plants and Seeds under the Ministry of Agriculture and Rural Development oversees new plant varieties.
I m p a c t o f t h e I n t e l l e c t u a l P r o p e r t y S y s t e m o n E c o n o m i c G r o w t h
* The able assistance of Nguyen Vo Hung and Tran Ngoc is gratefully acknowledged. The views expressed in this report are those of the author and do not necessarily reflect those of the WIPO Secretariat or any of its Member States.
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112 Besides the provisions stipulated in this IP law, other laws and regulations also set out provisions, such as the Criminal Code (1999), the Science and Technology Law (2000), the Customs Law (2001), the Trade Law (2005), the Investment Law (2005), the Technology Transfer Law (2005), etc., related to intellectual property. Regarding international treaties, Vietnam is a member of most important conventions such as the Stockholm Convention, the Paris Convention, the Madrid Agreement, the PCT, the Berne Convention, TRIPS, the Rome Convention and the Lahay Convention. Vietnam has also signed bilateral agreements which include a section relating to intellectual property with several countries such as that between Vietnam and the US.
1.2. Outline of the Present Economic Situation
In 1986, Vietnam started the transition from a centrally planned to a market economy. Much effort has been made to reform economic policies and certain strategies have been implemented. As a result, Vietnam can point to many positive achievements: GDP per capitais continuously increasing from under 100 US dollars in the late 1980s to nearly 700 US dollars in 2005. The growth rate of GDP turned in a very good performance; 8 per cent in 2005 (see Fig. 1).
Since 1987, Vietnam has been very successful in attracting FDI (see Fig. 2). With the advantage of proximity and cultural similarity, businesses from neighboring countries such as Japan, Singapore and South Korea arrived in Vietnam soon after the start of its open-door policy. These countries alternate among the top rank of FDI in Vietnam. Although foreign companies employed fewer than 1 per cent of the total workforce, taken together they accounted for around 27 per cent of the country’s non-oil exports and 35 per cent of the country’s total industrial output; constituted almost 13 per cent of Vietnam’s GDP and contributed around 25 per cent of total tax revenues: Vietnam is ranked third in attracting FDI in Southeast Asia. Thus, FDI is turning to Vietnam despite the global downturn and fierce competition worldwide (Vietnam Investment Review,2001). There is no clear indicator: however, foreign companies are believed to have a better understanding than local companies of the importance of IPRs.
Fig. 1. GDP per capita (USD) Source: GSO
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Since 1995, gross industrial output has dramatically increased although before then it was very low. This increase appears in almost every industry, e.g. chemicals, manufacturing, transport, equipment assembling and repairing. Computer and office equipment is new to Vietnam but it has contributed to the increase in the total gross industrial output since 2000.
In 2006, Vietnam succeeded in its negotiations with the WTO and became a member. This opened a new phase of economic and social development for the country; however, along with opportunities, there have been many challenges that must be overcome and strengthening IPRs is one of the measures needed to be taken in order to meet these new challenges.
Fig. 2.Number of FDI Projects Source: GSO
Fig. 3.Gross Industrial Output Source: GSO
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