An FDI group transfers a production line, formulas, or product designs to its Vietnamese subsidiary. If that technology is not protected by patents or industrial designs in Vietnam, the company is effectively handing over the keys to its technology with no legal barrier against copying. This article maps the protection tools and strategy for FDI enterprises.
1. Patents vs. industrial designs: terms and conditions
| Criterion | Patent (invention) | Industrial design |
|---|---|---|
| Protection term | 20 years from filing (non-renewable) | 05 years from filing, renewable twice, each time 05 years (max 15 years) |
| Conditions | Novelty, inventive step, industrial applicability | Novelty, creativity, industrial applicability |
| Subject matter | Technical solutions (products, processes) | External appearance of products |
There is also the utility solution (10-year protection) for technical improvements with a lower inventive threshold — fitting many production-line improvements of FDI enterprises.
2. New timelines under the 2025 IP Law
From 1 April 2026, the amended IP Law 2025 (131/2025/QH15) significantly shortens processing times (Article 119):
- Patents: substantive examination from 18 months down to 12 months;
- Industrial designs: from 07 months down to 05 months;
- Application publication: from 02 months down to 01 month;
- Fast-track: 03 months for qualifying patent and trademark applications as specified by the Government.
3. Link to mandatory technology transfer registration
Under Article 31 of the Law on Technology Transfer 2017 (07/2017/QH14), technology transfer from abroad into Vietnam is subject to mandatory registration of the transfer contract with the state science and technology authority. In parallel:
- If the technology is already protected by patent/industrial design in Vietnam, the transferee may use it under the contract;
- Register the industrial property use license contract with the IP Office so the use right is enforceable against third parties;
- Check the lists of prohibited/restricted technologies (Decree 76/2018/ND-CP) before signing — prohibited technologies cannot be transferred; restricted ones need a transfer license.
4. Four-step strategy for FDI enterprises
- File for protection in Vietnam before or alongside the transfer — do not wait until after;
- Register the technology transfer contract (mandatory for inbound transfers);
- Register the patent/design use license contract with the IP Office;
- Tight confidentiality and non-compete clauses in the transfer contract and in employment contracts with technical staff.
Combining all four layers — protection titles, transfer registration, use-license registration, and contractual clauses — gives FDI enterprises a complete fence around technology brought into Vietnam.
Prepared by the FLAW AI Legal Council. This content is pending QA Council review before submission for approval.
