The workshop ‘Protection and commercialization of intellectual property - Competitive advantage in the new context’ organized by the Ministry of Science and Technology in collaboration with the Ho Chi Minh City International Integration Center today attracted the attention of many experts, businesses and management agencies in the field of intellectual property.
The speakers effectively clarified the critical function of intellectual property (IP) as a strategic asset for enterprises aiming to enhance their competitive standing. Specifically, they underscored IP's instrumental role in facilitating export activities and enabling the expansion of businesses into international markets.
During the workshop, Head Tran Giang Khue of the Ministry of Science and Technology’s Representative Office of the Department of Intellectual Property in Ho Chi Minh City asserted that intellectual property (IP) transcends its function as a legal protection mechanism for creativity, serving instead as a strategic economic asset. He posited that the effective exploitation of IP can generate sustainable revenue streams and function as a catalyst for corporate brand enhancement.
In a press statement, Mr. Khue cited Apple's vast intangible assets, valued at over US$500 billion, as a prime example of how global enterprises leverage their intellectual property portfolios of patents, trademarks, and trade secrets to drive corporate growth.
In Vietnam, the utilization of geographical indications for products such as Phu Quoc fish sauce, Hoa Loc mango, and Lo Ren star apple has facilitated expanded market access, particularly to high-value markets like Japan and the European Union. This has resulted in a demonstrable increase in export value, highlighting the efficacy of geographical indications as a market access tool.
In today's competitive business environment, protecting a company’s brand and ideas is more crucial than ever, particularly true for small and medium-sized enterprises (SMEs). Despite the importance of intellectual property rights, most Vietnamese enterprises, particularly small and medium-sized businesses (SMEs), have neglected to prioritize this critical area. According to Director Chu Ba Long of An Phat Science and Technology Consulting Company, SMEs account for 96 percent of the total number of domestic enterprises but most have not registered or effectively exploited intellectual property rights. Businesses often neglect brand protection until legal disputes force them to address the issue.
Mr. Long cited a number of typical cases such as Buon Ma Thuot coffee, which was once registered by a Chinese company in this market, making it impossible for the product to be exported to China for many years.
Plus, the case of Phu Quoc fish sauce being occupied by an American company with the domain name and trademark "Phu Quoc" in this market, causing serious misunderstandings for international consumers. Neglecting to register intellectual property rights in key markets can prove costly for Vietnamese businesses, as this analysis demonstrates.
The European Commission's report also clearly stated that SMEs with at least one protected intellectual property have 20 percent higher revenue than businesses without any protected assets. This further confirms that intellectual property is not only of legal significance, but is a factor that creates value and real competitive advantage.
This necessitates that companies establish a dedicated intellectual property department, allocate resources for employee training, and develop a comprehensive intellectual property management system that spans from research and development through to production, marketing, and export.
Experts also recommend that the State should have a mechanism to support SMEs in registering intellectual property, especially protection fees at home and abroad. In addition, strengthening international cooperation, simplifying protection procedures, and building a shared database on intellectual property are also key solutions to enable Vietnamese businesses to increase their presence in the global market.
Businesses must recognize that in the era of the digital economy, intellectual property transcends mere ownership documentation; it is a fundamental component of a company's core value. Effectively identifying, safeguarding, and leveraging intellectual property will be crucial for Vietnamese products to establish their presence in the global trade landscape.
