You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

March 4, 2021

Vietnam: Differing Views on the Use of a Mark on Exports

Managing Intellectual Property

Vietnam has become a big player in the global fashion industry. Garments made in Vietnam now appear all over the world, especially in the U.S. and the EU. In this value chain, however, Vietnamese companies usually play the role of garment processors, fulfilling the orders of big brands for immediate export purposes. While the goods bearing the registered marks are made in Vietnam by local companies, the brand owners are often overseas or global corporations.

As a brand owner can lose protection of its mark in Vietnam due to non-use, this situation leads to the question of what constitutes “use” of a mark when the mark-bearing goods are processed for export only, and not sold in the Vietnam market.

Article 124.5 of Vietnam’s IP Law provides that:

Use of a mark means the performance of the following acts:

    1. Affixing the protected mark on goods, packaging, business facilities, means of service provision, or transaction documents in business activities;
    2. Circulating, offering, advertising, or stocking for sale goods bearing the protected mark;
    3. Importing goods or services bearing the protected mark.

At first glance, the above provision seems quite clear. While importing goods appears on the list, exporting goods is conspicuously absent, and therefore it is not an act of use.

However, it is also clear that for the purpose of exporting, a product should go through a manufacturing or processing stage in which the mark will be physically affixed to the product or its packaging. For fashion goods, this could be in the form of a removable tag or package, a tag sewn onto the item, or a fundamental part of the garment’s design (such as a T-shirt emblazoned with a brand name, or a shoe featuring a distinctive logo). Then, the question becomes whether this act of affixing the mark on the goods or packaging in the manufacturing process constitutes an act of use.

To defend its marks against a non-use cancellation action, a brand owner can lean on a literal argument, as “affixing the protected mark on goods or packaging” is clearly stated in Article 124.5(a), and business activities, while not defined in the law, could logically be interpreted to include the manufacturing stage.

In practice, if the brand owner can present a license agreement in which the Vietnamese local processor is granted a license to use the mark in question, it is very likely that the mark’s affixation to exported products will qualify as use of the mark, hence it is helpful to defend the mark from non-use action. Thus, it is highly recommended for brand owners to enter into trademark license agreements with their local processors to support any such defense. It is also worth noting that since January 14, 2019, a trademark license agreement no longer needs to be registered to be valid against a third party.

Viewed from a different angle, there is also the question of whether the use of marks for goods that are manufactured in Vietnam solely for export purposes could constitute trademark infringement.

In this case, the answers from the enforcement authorities and IP practitioners vary. Some practitioners take a straightforward view that exporting is not considered use of a mark, and thus the exportation of goods bearing another’s registered mark is not an infringement. The General Department of Customs seemingly takes this view as well, despite the fact that Article 199.2 of the IP Law provides that, if necessary, the competent authorities can apply measures to control imported and exported goods regarding intellectual property issues, and Article 200.4 further provides that such control falls within the authorization of customs.

The Ministry of Science and Technology (MOST) views the issue slightly differently, as shown in an official letter in a recent case where MOST stated that the exportation of goods bearing another’s registered mark is not specifically mentioned in Vietnamese law and thus must be handled cautiously, and no sanctions against such exportation were recommended. While not expressly indicated, it seems that MOST views that the use of a mark for export goods does not cause any damage to the brand owner, so no sanctions should be imposed against such use.

Another related authority, the Market Surveillance Department, apparently has not yet been involved in an actual case related to exported goods. However, in discussions with them, they have expressed that in their role of monitoring the domestic market, if they detect any goods bearing the registered trademark of another owner in the inland territory (e.g., in a warehouse or on their way to the port), they may view that these acts fall within Article 124.5(b), and thus constitute trademark infringement.

In short, there is no hard and fast answer for the use of a mark on exported goods. Depending on the specific circumstances, the authorities may resolve the issue differently.

This article first appeared in Managing Intellectual Property.

RELATED INSIGHTS​ 

December 30, 2025
On December 17, 2025, Laos’ Ministry of Industry and Commerce (MOIC) issued a notice introducing a new digital system that allows e-commerce businesses to obtain required certificates and licenses through an online, application-based platform. Notice No. 3988, which will take effect on February 1, 2026, introduces the E-Trust platform, a downloadable application that allows e-commerce businesses to remotely obtain acknowledgement certificates and business operating licenses. New Digital Registration Options Under the previous framework established by the Decree on E-commerce (2021), businesses were required to complete registration exclusively through paper-based submissions. The new system now offers businesses two registration options: Traditional paper-based process at the Division of E-commerce Management within the MOIC; or Electronic registration and renewal through the E-Trust platform. This change is expected to streamline procedures, reduce administrative burdens, and enhance accessibility for businesses operating outside Vientiane. The E-Trust platform facilitates compliance for both individuals and legal entities required to submit applications and renewals for required certificates and licenses. The development is particularly beneficial for businesses located in remote provinces, as it eliminates the need for physical travel and significantly accelerates processing times. Compliance Requirements and Penalties Businesses must obtain or renew the required certificates and licenses to avoid sanctions under the Decision on Fines and Other Measures for Violation of the Decree and Regulations on E-commerce (No. 2828/MOIC, dated November 11, 2025). Penalties for noncompliance may include monetary fines and other enforcement measures.
December 5, 2025
One morning, a California-based company mapping its Southeast Asia rollout opened an unexpected cease-and-desist letter from a Vietnamese IP firm. To the company’s surprise, the letter asserted that a local client already owned the company’s brand in Vietnam and threatened legal action. This is not an isolated incident. In another recent matter in the sports industry, a squatter demanded at least USD 48,000 from our client to “resolve” a similar conflict. For brands entering Vietnam or expanding distribution there, these tactics can create acute risk at precisely the point at which market momentum is building. Vietnam’s rapid economic growth and deepening integration into global trade have made it an increasingly attractive destination for multinational brands. Those same dynamics have intensified a longstanding issue: trademark squatting. Vietnam has modernized its IP framework over the past decade, but its strict first-to-file trademark system continues to incentivize opportunistic filings by parties with no legitimate interest in a mark. As more foreign brands build their reputation abroad before turning to Vietnam, squatters remain alert to timing gaps and enforcement frictions. The First-to-File System: Advantages and Vulnerabilities Vietnam adheres closely to the first-to-file principle under its Law on Intellectual Property. In practice, exclusive trademark rights belong to whoever submits the earliest valid application to the Vietnam Intellectual Property Office, regardless of prior use in Vietnam. This approach offers administrative clarity and reduces evidentiary burdens compared to use-based jurisdictions. Yet it also creates fertile conditions for squatting. Bad-faith actors regularly monitor foreign markets, identify brands gaining traction, and move quickly to register those marks domestically, often long before the genuine owner enters the market or prioritizes local filings. By the time the true brand seeks protection, the squatter’s application (or registration) stands as a legal obstacle, pushing businesses toward costly oppositions, cancellations, or uncomfortable negotiations
November 26, 2025
On November 21, 2025, Myanmar’s Ministry of Commerce (MOC) issued Notification No. 103/2025 promulgating the Geographical Indication Rules (GI Rules), establishing a comprehensive framework for the registration and administration of geographical indications (GI), which are primarily governed by the Trademark Law of 2019. On the same day, the MOC released Notification No. 104/2025 specifying the required forms for GI-related matters. The GI Rules establish a comprehensive set of procedures for the entire GI application process, including filing applications, oppositions, cancellations, and invalidations, and appointing a local representative for GI-related matters. Under the Trademark Law and the GI Rules, domestic and foreign legal entities (organizations) that formally represent a defined group of stakeholders (such as producers or manufacturers of natural products or resources, agricultural products, handicrafts, or industrial products) and other competent authorities from government departments are eligible to apply for GI registration with the Intellectual Property Department (IPD) in Myanmar. Application A GI application can be submitted in either English or Myanmar language electronically, in person, or via post. Foreign applicants seeking to register a GI in Myanmar are required to submit a copy of the registration certificate from their country of origin with the GI application. This certificate must explicitly state the GI name of the protected product. Notably, foreign applicants are mandated to appoint a local representative in Myanmar to act on their behalf for GI-related matters with the IPD and appeal-related matters with the IP Agency. The form for appointing the local representative must be duly notarized in the applicant’s home country to ensure its legal validity and acceptance in accordance with the GI Rules. Application for Use of GI Logo Pursuant to the GI Rules, any interested individual, local or foreign, may submit an application to the IPD for authorization to use the GI logo,
November 13, 2025
Tilleke & Gibbins has contributed the Thailand chapter to Franchise 2026, part of the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This annual guide offers comparative analysis of franchise laws and regulations across jurisdictions worldwide, providing practical insights for businesses and legal practitioners operating in the global franchise sector. Each country chapter in the 12th edition follows a Q&A format covering key aspects of franchise law and operations, including: Relevant legislation and rules governing franchise transactions Business organization options for franchised operations Competition law considerations Protection of intellectual property and brands Liability issues and risk mitigation Governing law and dispute resolution Real estate matters Online trading regulations Termination requirements Joint employer risks and vicarious liability Currency controls and taxation Commercial agency considerations Good faith obligations and fair dealing requirements Ongoing relationship management Franchise renewal processes Franchise migration procedures Sustainability commitments Electronic signatures and document retention Current developments in the franchise sector The Thailand chapter, authored by Alan Adcock and Kasama Sriwatanakul, provides an in-depth overview of the legal landscape for franchising and franchising-related activities in Thailand. The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Franchise 2026 guide—are also freely available on the ICLG website.