Vietnam Patent Application Methods and Procedures

Vietnam has been recognized as one of the fastest-growing markets in Southeast Asia in recent years. Due to China's slowing growth, Vietnam has rapidly emerged as an attractive investment destination for Korean companies seeking new production bases. In particular, not only large corporations like Samsung Electronics, LG Electronics, and Hyundai Motor Company but also various small and medium-sized companies are actively entering the Vietnamese market. Amid this trend, Securing intellectual property rights, especially patent rightshas become an essential element for strengthening corporate competitiveness and establishing market leadership.

In this column, we will guide Korea's Pine IP Firm, focusing on the necessary methods and procedures for filing patents in Vietnam, along with a brief overview of investment in the Vietnamese market.

1. Investment Status of Korean Companies Entering Vietnam

1. Cumulative Investment Amount by Korean Companies

• Over the past 30 years, Korea's cumulative investment in Vietnam has reached approximately 57.5 billion dollars (approximately 62 trillion won).
• In 2017, the scale of investment grew significantly, with $8.17 billion invested.

2. Investment Sectors and Objectives

• The main industries where Korean companies invest in Vietnam are manufacturing (over 70%), which accounts for an overwhelming share.
• In the early days, Taking advantage of low wages The purpose was strong, but recently Securing a Position in the Local Domestic MarketThere is a growing trend of entry for this purpose.
• With the joint entry of large corporations, first- and second-tier partner companies are also joining forces, accelerating the acquisition of production bases in Vietnam.

3. Fostering Strategic Industries by the Vietnamese Government

• The Vietnamese government announced the 'Vietnam National Development Strategy 2030' and is strengthening investment incentives in high value-added industries such as electronics, telecommunications, software, and component materials.
• Fostering Small and Medium-sized Enterprises and Startupsand is actively promoting e-commerce, gaming, Rapid growth is expected in new industry sectors such as IT technology.

4. Status of Intellectual Property Rights Acquisition

• Because the goal is to utilize Vietnam as a production base, the number of patent applications is still relatively low compared to countries like China and the United States.
• As of 2016, the cumulative number of Korean company patents in Vietnam was about 3,200, with an annual application volume of about 583.
• With an average of about 0.6 patents per company, securing patents is still insufficient, so active patent strategies are needed by small and medium-sized enterprises.

2. Trends in Patent Applications in Vietnam and Major Applicants

1. Major Filing Companies

• Samsung Electronics first filed a patent in Vietnam in 1996, and the number of applications has steadily increased since 2012.
• LG Electronics maintained a steady level every year after its first application in 2000, but has been increasing its filing volume since 2015.
• CJ CheilJedang (feed, food additives, etc.), Lotte (food, chemicals), POSCO (steel), Hyosung, and SK Group are among the main applicants.

2. Pharmaceutical Applications

• The top patent application field in Vietnam is 'pharmaceuticals,' and major domestic pharmaceutical companies such as Hanmi Pharmaceutical, Daewoong Pharmaceutical, Yuhan Corporation, and Chong Kun Dang are also steadily filing patents in Vietnam.
• In particular, Hanmi Pharmaceutical is the most active in filing with over 60 cases, including affiliates.

3. Status of World-Class 300 Companies Entering

• About 40 out of the World-Class 300 companies have entered Vietnam, with 11 filing patents (a total of 63 cases).
• Applications in the pharmaceutical and bio sectors such as Daewoong Pharmaceutical and Korea United Pharmaceutical stand out, while component and material companies tend to file relatively fewer patent applications.

3. Key Contents of Vietnamese Patent Law

Vietnamese patent law is well-organized to comply with international norms (such as the Paris Convention and PCT), Novelty, progressiveness, and industrial applicabilityPatents are granted for inventions equipped with the above. However, please be sure to pay attention to the following points.

1. Protected Objects

• Objects (devices or materials), the use of new items, methods, etc.
• Fundamental biological methods related to plants and animals are excluded (separate protection law applies).

2. Registration Requirements

• novelty: Must not be announced domestically or internationally before the filing date (or priority date).
• progressiveness: It must not be easily derived by an ordinary technician (utility models do not require inventive step).
• Industrial Availability: The invention must be able to be applied repeatedly and on a large scale.

3. Claims of public exception

• According to the law amended since January 2019, novelty can be maintained even if the publication was made within 12 months prior to filing if certain conditions are met.

4. Review Request System

• Patent: Within 42 months from the priority date
• Utility model: within 36 months from the priority date
• If you do not file a review request within the deadline, it will be considered 'withdrawn,' so caution is needed.

5. first-to-file principle

• Only those who filed the same invention first can be registered.

4. Methods and procedures for patent applications in Vietnam

4.1 Preparation of Application Documents

1. Required Information and Documents

• Applicant's name, address, nationality
• Inventor's name, address, nationality
• Two copies of the Vietnamese specification (name, technical field, background technology, detailed description, claims, summary, drawings)
• Power of attorney (notarization required)
• Proof of priority (if you have priority)

2. Instructions for Filling Out Specifications

• Detailed Description of the Invention: The technical field, background technology, and details of the invention should be included.
• claim: Independent claims must include all the key technical elements of the invention, and dependent claims should be written to support those claims.

3. Application Costs

• The application fee is calculated as a base fee + number of claims + number of pages, etc.
• As the number of claims increases, the examination request fee and post-registration annual leave fee also increase proportionally.

4.2 Examination Procedure

1. Application Publication

• All patent applications are published 19 months after the priority date (a separate procedure applies for PCT applications).
• If the applicant wishes, early disclosure can also be requested.

2. Substantive Review Request

• Patent: Request for examination within 42 months from priority date, utility model: Within 36 months.
• After filing an examination request, the Korean Intellectual Property Office usually issues a notice of reasons for rejection or a decision to grant within 12 months (9 months for utility models).
• Notice of Reasons for RejectionOnce issued, you can respond with an amendment and opinion within three months.

3. Registration Decision and Payment of Registration Fee

• Once you finally receive the registration notice, you must pay the registration fee within three months to receive the patent certificate.
• Generally, it takes about 2~3 years from filing to registration in Vietnam.

4.3 Post-Registration Management (Annual Fees, License Rights, etc.)

1. Annual Fee Payment

• A patent is valid for 20 years from the filing date (or PCT filing date), and annual fees must be paid annually.
• Annual fees are charged starting from the second year after patent registration, and in case of overdue, additional fines must be paid within a six-month grace period.

2. License Setting

• Patent holders can grant licenses to third parties through license agreements, and only if registered with the Vietnam Patent Office do they become effective.
• Licenses are classified into exclusive, non-exclusive, and compulsory licenses, with compulsory enforcement only permitted in limited cases recognized by the state.

3. Transfer of Rights

• Patent rights can also be transferred through sale, but the transfer contract must be registered with the Patent Office to be valid.

5. The Importance and Strategies of Patent Applications in Vietnam

1. Essential elements for local production and market leadership

• Vietnam is gradually shifting from a manufacturing hub leveraging low wages to a focus on the domestic market and high value-added industries.
• If you are a company directly engaged in research and development (R&D) or manufactures and sells products within Vietnam, you must Securing Local PatentsWe must protect technology and prepare for conflicts through these measures.

2. Opportunities and Challenges for Small and Medium-sized Enterprises

• While major corporations like Samsung Electronics and LG Electronics are mainly securing patents, Small and medium-sized enterprisesThey tend to be somewhat reluctant to secure patents.
• However, if competition in the domestic market intensifies in the future, Patent Disputeor the risk of counterfeit products may increase. Miri Aggressive and defensive patent strategiesIt is important to establish this.

3. IP strategy linked to R&D

• The Vietnamese government is also actively promoting high value-added industries and fostering small and medium-sized enterprises and startups, so it is working to establish local R&D centers, develop new products, and simultaneousYou should consider filing a patent for this option.

Conclusion

Vietnam is a challenge for Korean companies. A second global production hub and a rapidly growing domestic marketIt offers great opportunities. However, as much as economic benefits and growth are expected, Securing Intellectual Property Rightsis also growing day by day.
Vietnam patent applications From application procedures to examination requests, annual fee payments, and license setupand the assistance of experts well-versed in local laws and systems is essential.Pine IP FirmBased on Vietnamese patent law and practical experience, it is designed to support Korean companies entering the Vietnamese market. Customized Patent Strategyis being presented. If you want to solidify your technological competitiveness in the Vietnamese market, securing patents is no longer just an option but a necessity. For successful entry into Vietnam and stable market operations, Patent application in VietnamBe sure to make sure to take care of it.

Protecting intellectual property rights in Vietnam requires swift decision-making and a strategic approach. If you have any questions, please feel free to ask. Pine IP FirmPlease contact us at the designated address.