Vietnam Eyes Intellectual Property as Capital, Collateral to Boost Economy

Vietnam is advancing its legal framework to allow intellectual property (IP) to be utilized as capital contributions and collateral for loans, aiming to transform IP into a tangible asset that drives economic activity. This move is expected to invigorate the Vietnamese economy. Recent training sessions focused on IP law enforcement highlighted updates to the amended Intellectual Property Law (Law No. 131/2025/QH15), Decree (Decree No. 100/2026/NĐ-CP), and Circular (Circular No. 10/2026/TT-BKHCN). These legislative changes aim not only to refine the IP protection system but also to shift the focus from protection to the economic exploitation of IP assets. Under the new regulations, IP owners can use their IP rights for capital contributions, as collateral for loans, and in other civil and commercial transactions. The government plans to establish a database of IP transaction prices to enhance market transparency and support IP valuation, transfer, and commercialization. This will enable inventions, trademarks, and other creative outputs to become resources for production and business, rather than just registered certificates. Furthermore, IP protection in the digital environment is being strengthened. Civil measures are being expanded, the responsibilities of digital platform operators clarified, and provisions for handling infringing goods and compensation for damages are being enhanced to improve deterrence. This addresses the urgent need to combat increasingly complex IP infringements as business and content distribution move online. Digital transformation (DX) is also a key component of these reforms. Streamlining application and processing procedures, utilizing AI to support specialized operations, and building national databases for industrial property are intended to expedite procedures and improve service quality. New provisions also address the relationship between AI and IP, proposing an approach that balances recognizing IP rights for human-assisted AI outputs with allowing reasonable data utilization for AI training. This is a novel issue requiring careful application to protect creators' rights without hindering technological research and development. Officials emphasize the importance of direct guidance and dialogue from the Intellectual Property Office to ensure a unified understanding and application of the new regulations nationwide, preventing confusion. When IP is effectively protected and transparently traded in the market, it will serve as a substantial resource for businesses, innovation, and the development of the digital economy. Source: Nhan Dan