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​ 

July 9, 2025
On June 16, 2025, the National Assembly of Vietnam adopted Law No. 75/2025/QH15 amending and supplementing a number of articles of the 2012 Advertising Law, with an effective date of January 1, 2026. The amended Advertising Law was enacted to further refine the legal framework for advertising activities in the modern era. Online Advertising Under the amended Advertising Law, “online advertising” is defined to encompass not only advertising on electronic newspapers and electronic information pages (as provided under the 2012 Advertising Law) but also advertising on other electronic venues, including social media, online applications, and digital platforms with internet connection. The amended Advertising Law also imposes new requirements for online advertising, including: Identification signs: Advertisements must have clear identifiable signs in numbers, letters, symbols, images, or sounds to distinguish them from non-advertising content. Control features: For advertisements not in fixed areas, there must be easily recognizable features and icons that allow recipients to turn off the advertisement, notify the service provider of violating advertising content, and refuse to view inappropriate advertising content. Linked content: Content in the links embedded in advertisements must comply with the law. Advertising service providers and publishers must have measures to check and monitor the linked content. Advertising on social media: Organizations and enterprises providing social media services must offer users features to distinguish advertising content from other content. Signage for sponsored content: When advertising, users of social media services must use signs to differentiate advertising or sponsored content from other content they provide. In response to the above requirements for online advertising, the amended Advertising Law sets out obligations of advertisers, advertising service providers, advertising publishers, and advertising conveyors in relation to online advertising. Among these, it is notably the responsibility of individuals and organizations engaging in online advertising to prevent and remove violating
May 28, 2025
Tilleke & Gibbins attorneys in Vietnam have contributed the 2025 edition of Doing Business in Vietnam, a comprehensive Q&A-style resource from Thomson Reuters Practical Law that provides essential insights for companies navigating business operations in Vietnam. The guide presents a detailed overview of the country’s legal framework and regulatory environment, reflecting recent updates in Vietnamese legislation and practice. This annually updated guide offers key information on the following areas: Legal system: Structure of the Vietnamese judiciary and the role of codified law. Foreign investment: Conditions for market access, licensing requirements, foreign ownership restrictions, and investment incentives. Business vehicles: Formation and operation of legal entities, including limited liability companies, joint-stock companies, and representative offices. Employment: Employment contracts, social insurance, labor rights, and procedures for hiring foreign nationals. Tax: Overview of corporate income tax, personal income tax, value-added tax, and other tax obligations. Intellectual property: Procedures for protecting and enforcing patents, trademarks, copyrights, and other IP rights. Data protection: Compliance requirements under Vietnam’s data privacy laws, including the Personal Data Protection Decree. Competition law: Antitrust rules and regulatory oversight under the Law on Competition. Anti-bribery and corruption: Legal framework and enforcement practices aimed at curbing corrupt activities. E-commerce and digital business: Regulations governing online platforms, digital content, and cross-border services. Marketing and advertising: Laws and guidelines on advertising standards and consumer protection. Product regulation and liability: Safety requirements, product liability issues, and roles of relevant authorities. Doing Business in Vietnam is part of Practical Law’s global series of legal guides designed to support international practitioners and businesses. To access the most recent edition of the Vietnam guide, visit the Practical Law website and sign up for a free trial.
May 2, 2025
Attorneys from Tilleke & Gibbins have updated the latest edition of Doing Business in Thailand, a Q&A-style guide from Thomson Reuters Practical Law that offers an overview of key legal considerations for companies operating in jurisdictions worldwide. The contribution outlines the country’s legal and regulatory framework for foreign investment and business operations and reflects the latest legislative developments. The chapter addresses the following core topics: Legal system: Structure of the courts and the codified nature of Thai law. Foreign investment: Business restrictions under the Foreign Business Act, sector-specific regulations, exchange control rules, and investment incentives. Business vehicles: Overview of partnerships, private and public limited companies, and other legal entities. Employment: Labor protections, employment contracts, foreign worker requirements, and termination procedures. Tax: Corporate and personal income tax, indirect taxes, and tax obligations for residents and non-residents. Intellectual property: Registration and enforcement of patents, trademarks, designs, and copyrights. Data protection: Key provisions of the Personal Data Protection Act and related compliance obligations. Competition law: Regulatory framework under the Trade Competition Act. Anti-bribery and corruption: Relevant legislation and enforcement mechanisms. E-commerce and digital business: Legal regime for online transactions and digital platforms. Marketing and advertising: Consumer protection laws and regulations affecting advertising and marketing practices. Product regulation and liability: Safety standards, liability regimes, and roles of enforcement authorities. Practical Law, a legal reference resource from Thomson Reuters, publishes a range of guides for hundreds of jurisdictions and practice areas. The insurance and reinsurance guide is a valuable resource for legal practitioners, covering numerous jurisdictions worldwide. To view the latest version of the guide, please visit the Practical Law website and enroll in the free Practical Law trial to gain full access.
April 10, 2025
After making revisions to the initial draft notification released in November 2024, Thailand’s Electronic Transactions Development Agency (ETDA) has released an updated draft Notification on Additional Obligations for Digital Platform Service Operators of Online Marketplaces for Goods with Specific Characteristics under Section 18(2) of the Royal Decree on the Operation of Digital Platform Service Businesses Subject to Prior Notification B.E. 2565 (2022) B.E. … . A focus group session was also held to gather feedback from business operators. Below is a summary of key provisions in the new draft. Unchanged Items Some key concerns that remain unchanged from the previous version of the draft notification include the following: Offshore business operators running online marketplaces that act as intermediaries for the sale or exchange of goods and provide facility services for the sale of goods (referred to as “specific marketplace operators” in the draft) are required to establish a local entity in Thailand. However, the criteria for determining which operators are specific marketplace operators are still under discussion due to feedback from business operators. Specific marketplace operators must submit a compliance report to the ETDA along with their annual report each year. Specific marketplace operators must verify that “business users” (e.g., merchants) provide complete details about goods in accordance with product standardization requirements. Removed Obligations The updated draft notification has removed specific marketplace operators’ obligations to: Conduct Identity Assurance Level 2 (IAL2) verification of business users before onboarding them on their platforms. Submit a registry of business users’ information to the ETDA. Retain business users’ information for a specified retention period. Implement measures to filter reviews of products subject to specific standards. Revisions Key revisions made to the draft notification include the following: The effective date has been extended to 120 days after the notification’s publication in the Government Gazette,