The joint leaders’ statement on the upgrade of bilateral relations between Vietnam and the United States to a comprehensive strategic partnership, which was announced on September 10, stated that the two countries “decided to strengthen science, technology, and digital innovation cooperation.” It also acknowledged Vietnam as a potentially major player in the semiconductor industry. The comprehensive strategic partnership will help improve Vietnam’s position in the global semiconductor supply chain. The issue of intellectual property (IP) cooperation was once again mentioned in the joint statement, which will surely bring about both opportunities and challenges.

The day of September 10 witnessed the establishment of an important landmark for both the U.S. and Vietnam when the two countries’ leaders declared to elevate bilateral relations to a comprehensive strategic partnership, the highest level of partnership which Vietnam establishes with other countries. The joint statement marked a new historic era in the bilateral friendship and cooperation between the two peoples. Vietnam has now become a highly potential partner for the U.S. in Southeast Asia. Promoting IP cooperation There is a very good reason for the joint statement to mention cooperation in IP protection. While the U.S. is known as a country with the most stringent IP protection measures in the world, Vietnam is still inexperienced in this special area. For instance, Vietnam is still included in the Priority Watch List of the Special 301 report in 2023. Special 301 allows the U.S. Trade Representative (USTR) to initiate trade sanctions, including the imposition of punitive customs and import duties on countries that fail to protect IP rights of U.S. companies. The USTR annually reviews countries with inadequate IP protection and then take retaliatory actions. Under Special 301, trade partners of the U.S. are classified into the Watch List group of countries, the Priority Watch List, and the Priority Foreign Countries. Trade partners included in the final group are deemed as having the worst IP protection and most likely face retaliatory trade sanctions by the U.S. Undoubtedly, the inclusion of IP protection in the joint leaders’ statement reflects how the U.S. is concerned about this issue. It is not surprising when Vietnam has long been considered as lacking an efficient IP protection system. Special 301 views Vietnam as one among countries with a high rate of online IP infringements and lacking an efficient enforcement system. In reality, Vietnam relies on administrative measures but has not succeeded in preventing rampant copyright and IP infringements. Furthermore, although Vietnam has issued decrees to deal with online sales of copycats, the sale of goods violating IP rights via e-commerce platforms is still widespread. Even in physical markets, the situation can hardly be better. Documents by the U.S. show that the poor compliance mainly stems from inadequate coordination among relevant agencies, delays in inspections and punishments, and even the scant comprehension of IP regulations among these agencies. Opportunities IP protection is readily seen to only strengthen on a larger scale in the coming time. IP protection will not be limited to businesses, and as such, charities, social and cultural entities, artists, and educational institutions among others must prepare themselves for this change. A post-graduate student who worked for a charity organization once told the author he studied IP laws to comprehend exceptions in using copyrighted products free of charge for a non-profit organization, while an English composer also said he studied IP laws to better protect his works and can enter into efficient negotiations over copyright fees with recording organizations. U.S. corporations are more inclined to invest in countries with an efficient IP protection system, which will help them better safeguard their intellectual properties. Although the comprehensive strategic partnership can encourage more vigorous technology transfer and cooperation between enterprises of the two countries, such a vision can only be realized if the government and private businesses pay special attention to IP protection and seriously implement agreements. This will help build a solid platform for successful joint ventures and technology transfer agreements. Especially in the semiconductor industry that Vietnam wishes to advance, trade secrets, which are a kind of intellectual property less attended to in Vietnam, also play a very important role. Recently, giants like Dell, Google, Microsoft and Apple have moved part of their supply chains from China to Vietnam due to many reasons, including the ongoing U.S.-China trade war, the stringent Covid-19 policies in China, and piracy of U.S. trade secrets. In 2019, a Chinese citizen was slapped a 24-month prison term stateside for stealing trade secrets worth more than US$1 billion from a petroleum company in the U.S. where he worked. Legal action as a big challenge Apart from attractive opportunities, the expanded relationship with the U.S. also exposes Vietnamese businesses to an irksome challenge: legal actions. Contrary to the common mindset among Vietnamese businesses shunning court cases, U.S. corporations consider legal actions a work-a-day practice, and an efficient and fair way of settling disputes. In the IP sphere in particular, the U.S. like nowhere in the world boasts numerous laws and regulations. Therefore, before cutting deals, especially contracts with special provisions on protecting business secrets, enterprises and individuals need to be thoroughly counselled. Even if counselling may not give them the upperhand in negotiations, it is still essential since it allows them to deeply understand terms and conditions the American way to keep avoidable damages at arm’s length. Setting aside a budget for legal actions should also be taken into consideration by enterprises. In addition, enterprises should also refrain from the State protection coverage in civil transactions, and use professional legal services to safeguard their rights and interests rather than seeking the Government’s intervention. Furthermore, while the elevation of bilateral ties to a comprehensive strategic partnership will create opportunities for improving IP protection in Vietnam, it should be executed in a way that this special relationship will benefit all IP subjects in the two countries. (*) Durham University, England