Hanoi (VNA) – Intellectual property (IP) is increasingly viewed as a strategic tool for Vietnamese enterprises seeking to move beyond low-value outsourcing and manufacturing in global supply chains, experts have said.
While assembly and processing remain the least profitable segments of the global value chain, the highest added value is concentrated in research and development (R&D), innovation and brand ownership. For years, Vietnamese businesses have sought ways to escape dependence on contract manufacturing, but barriers related to legal frameworks, administrative procedures, and business mindset continue to hinder progress.
Experts said many domestic firms have long been satisfied with billion-dollar outsourcing contracts without recognising that, in the absence of core patents or proprietary brands, they have little control over pricing and market position.
Nguyen Cong Cuong, Vice Chairman of the Hanoi Association of Key Industrial Product Manufacturers, noted that in a jacket sold for 100 USD in international markets, Vietnamese manufacturers may earn less than 5 USD from cutting and sewing. Most of the remaining value goes to companies that own designs, material technologies and brands.
If Vietnamese enterprises continue to underestimate intellectual property, they will remain trapped at the bottom of the value chain with thin profit margins and face the risk of being replaced by foreign-invested competitors, he warned.
Long waiting times for patent examination and approval are also discouraging innovative businesses.
Pham Thu Ha, CEO of FoodTech in Ho Chi Minh City, said the patent registration process can take two to three years, causing firms to miss valuable market opportunities and fundraising windows.
She added that weak confidence in copyright enforcement has led many companies to keep innovations as trade secrets rather than register them, fearing their products could be copied.
Commercialisation remains another major challenge. Even after obtaining protection certificates, many enterprises struggle to turn intellectual assets into financial resources. Commercial banks remain cautious about accepting intellectual property as collateral due to the absence of widely recognised valuation standards and a strong secondary market for trading such assets.
As a result, many technology firms face capital shortages despite owning valuable intellectual property.
To turn intellectual property into a real driver of the digital economy, experts called for comprehensive reforms, ranging from administrative improvements to changes in business awareness.
A representative of the Intellectual Property Office of Vietnam under the Ministry of Science and Technology said the agency is accelerating the digitalisation of application processing and expanding the network of Technology and Innovation Support Centres (TISC) to assist businesses.
The ministry is also working with relevant agencies to develop standards for valuing intellectual property assets and strengthen coordination with customs and market surveillance forces to combat counterfeiting and protect rights holders.
On a broader scale, experts proposed testing mechanisms that allow intellectual property to be used as collateral for bank loans, alongside a transparent national intellectual property exchange that links scientists, startups, and venture capital funds.
Dau Anh Tuan, Deputy Secretary General and Head of the Legal Department at the Vietnam Chamber of Commerce and Industry, stressed that businesses, particularly exporters, should integrate intellectual property into their business strategies from the outset.
Enterprises should conduct patent searches before investing heavily in R&D to avoid infringement risks, he said, adding that the organisation is implementing training programmes to help firms improve legal and franchise management skills.
Vo Thanh Trung, Director of the Ho Chi Minh City branch of the Vietnam Anti-Counterfeiting Technology Centre, said some Vietnamese firms have successfully improved their negotiating positions with global partners by building transparent and professional intellectual property systems.
According to Trung, companies that register industrial designs in both Vietnam and export markets, with properly licensed software, have significantly strengthened their competitiveness and tripled profit margins compared to five years ago./.
