Trade Secrets Law in Vietnam
Here’s a detailed overview of Trade Secrets Law in Vietnam:
1. Legal Framework
Trade secrets in Vietnam are primarily protected under:
Law on Intellectual Property (No. 50/2005/QH11, amended by Law No. 42/2019/QH14)
Civil Code of Vietnam (2015)
Law on Competition (No. 23/2018/QH14)
Law on Technology Transfer (No. 80/2006/QH11)
Criminal Code of Vietnam (for criminal penalties related to trade secret misappropriation)
Vietnam is also a member of international treaties such as:
TRIPS Agreement
WTO
Paris Convention for the Protection of Industrial Property
2. Definition of Trade Secrets
Under Article 4.14 of the Law on Intellectual Property (2019 amendment), a trade secret is:
“Technical information, business information, or technological information that is kept secret, which is not publicly known, has commercial value, and is subject to reasonable measures to keep it confidential.”
Examples include:
Formulas, processes, methods, techniques
Business strategies, customer lists, pricing information
Manufacturing or operational methods
3. Protection Requirements
To qualify for protection, trade secrets must:
Be unknown to the public
Have commercial value
Be actively protected by the owner through reasonable confidentiality measures (e.g., NDAs, security protocols)
4. Legal Remedies
Owners of trade secrets may enforce their rights through:
a. Civil Remedies
Injunctions to stop unauthorized use or disclosure
Compensation for damages caused by misappropriation
Recovery of profits gained by the infringer
b. Administrative Remedies
Complaints to the Vietnam Competition and Consumer Authority (VCCA) for unfair competition involving trade secrets
Administrative fines and corrective measures
c. Criminal Penalties
Under the Criminal Code:
Unauthorized acquisition, use, or disclosure of trade secrets can lead to fines, imprisonment (up to 3 years or more for severe cases), and confiscation of illegal gains.
5. Enforcement
Courts, administrative authorities, and criminal prosecution offices handle trade secret disputes.
Courts may order confidentiality during proceedings to protect trade secrets.
Businesses commonly use NDAs and confidentiality clauses in contracts to safeguard secrets.
6. Practical Considerations
Vietnam encourages businesses to implement robust internal controls to protect trade secrets.
The government is strengthening IP enforcement mechanisms.
Foreign investors often require strong contractual protections alongside legal remedies.
Summary
Vietnam provides a comprehensive legal framework protecting trade secrets through its Intellectual Property Law, Civil Code, Competition Law, and Criminal Code, backed by enforcement by courts and administrative authorities. Reasonable efforts to maintain secrecy and formal contractual protections are essential.
RELATED Blog
0 comments