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

August 19, 2021

Vietnam Must Strengthen Criminal Laws Against Trade Secret Theft

Subscribe to Updates
Managing Intellectual Property

In today’s knowledge-driven, constantly connected global economy, a comprehensive legal environment is necessary to deter and address the theft of intellectual property, especially vulnerable IP assets like trade secrets. Trade secrets can give companies a competitive edge, and are obvious targets for misappropriation. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which took effect in Vietnam on 14 January 2019, has set a floor for its members to establish criminal sanctions for trade secret misappropriation. Vietnam’s compliance with the CPTPP’s requirements is necessary to ensure a healthy business environment as the country continues its path of economic integration.

Trade secret crimes under the CPTPP and Vietnam’s Criminal Code

Article 18.78 of the CPTPP requires its signatories to provide criminal procedures and penalties for one or more of the following:

  1. Unauthorized and willful access to a trade secret held in a computer system;
  2. Unauthorized and willful misappropriation of a trade secret, including by means of a computer system; or
  3. Fraudulent disclosure, or unauthorized and willful disclosure, of a trade secret, including by means of a computer system.

Vietnam’s Criminal Code 2015 (as amended in 2017) does not explicitly stipulate any trade secret crimes. However, the articles below might apply to some degree to trade secret misappropriation:

  • Article 159. Infringement of secrecy or security of another person’s mail, telephone, telegraph or other form of private information exchange;
  • Article 288. Illegal provision or use of information on computer networks or telecommunications networks; and
  • Article 289. Illegal infiltration into another person’s computer network or telecommunications network or electronic device.

One could argue that these articles of the Criminal Code, which mainly deal with the unlawful acquisition of information held in a computer network, suffice to meet the CPTPP’s requirements. However, their scope is limited to information exchange, information on computer networks, etc., and only covers a modest portion of all “trade secrets,” which, as broadly defined in Vietnam’s IP Law, encompass all types of information related to business that are commercially valuable, except for those related to personal identification, state management, and national defense and security.

These articles are principally designed to address misconduct related to private personal information (which may be unrelated to business) via computer systems. The law lacks any criminal measures to tackle “offline” misappropriation, let alone trade secret theft or economic espionage. Many instances of trade secret misappropriation still occur through traditional channels that are paper-based, not digital. As a trade secret can simply be in the form of a written note containing “tricks of the trade”, prying eyes can steal the secret at a glance.

One of the biggest threats to trade secret preservation is employees who break the promise of confidence by carrying a company’s precious business secrets to third parties. In a recent case in Vietnam, a reputable security software company found that an infringer (suspected to be a former employee) was offering source code from the company’s software (protectable as a trade secret) for sale on the internet. This type of insider threat clearly exists even in the most well-secured entity, and could result in severe economic losses and reputation damage if not properly safeguarded.

Outlook

Criminal prosecution is considered the strongest method of deterring IP crime. Yet for crimes related to trade secrets, the criminal sanctions in Vietnam do not provide enough of a deterrent, or sufficient means of trade secret protection as mandated by the CPTPP. Competitors in cut-throat competition can reap the benefit of others’ trade secrets without bearing the costs or risks of investing in their own R&D, knowing that any punishment will likely be minimal.

To our knowledge, only three cases related to trade secrets have been handled by Vietnamese authorities: (i) a 2005 case handled by the People’s Court of Ho Chi Minh City concerning the dismissal of an employee for violating internal labor rules on confidentiality, (ii) a 2010 case handled by the People’s Court of Duc Hoa District, Long An Province, concerning the alleged violation of a non-compete clause affecting trade secrets, and (iii) an administrative case regarding trade secrets currently being handled by the Inspectorate of the Ministry of Science and Technology. No criminal sanctions have yet been issued by the Vietnamese authorities for trade secret crimes.

With the current gaps in the scope of the criminal regime for trade secrets, it does not appear that a patchwork of other laws can cover the emerging threats, especially when the Vietnamese economy is opening a wide door to embrace the latest tastes and trends of integration.

Supplementing the current legal framework with strong criminal provisions on trade secrets, in harmonization with the CPTPP, will help Vietnamese businesses, particularly SMEs, to thrive and gain the upper hand in dealing with piracy risks, and also help foreign enterprises prevent the erosion of their competitive edge, promising a bright future for Vietnam in attracting both domestic and foreign investment.

This article first appeared in Managing Intellectual Property.

Download Full Article
Related Professionals

Practices

Dispute Resolution and Litigation

Intellectual Property

Location

RELATED INSIGHTS​ 

June 30, 2026
Customs recordation is an enforcement mechanism in Myanmar that enables intellectual property (IP) rights holders to seek prevention of the cross-border movement of infringing goods. The enactment of Myanmar’s IP laws in 2019 has enabled customs recordation for registered marks and copyrights under the Trademark Law 2019 and the Copyright Law 2019. By contrast, the Patent Law 2019 and the Industrial Design Law 2019 do not provide a practical framework for customs recordation, and accordingly such rights are not subject to the customs recordation regime. Under the Trademark Law 2019, rights holders may apply for customs recordation and may also ask the Customs Department to suspend the release of goods suspected of bearing counterfeit marks. Likewise, the Copyright Law 2019 allows for customs intervention in relation to pirated works. These provisions reflect Myanmar’s gradual alignment with international standards on border measures, although the implementation framework remains at a relatively early stage of development. Customs Recordation Pursuant to the Trademark Law 2019 and the Copyright Law 2019, the relevant authorities have issued customs rules concerning the protection of registered marks and copyrights. In practice, the process generally begins with the submission of an application to the Customs Department together with supporting documentation. This typically includes proof of registration in Myanmar; details of the rights holder, applicant, and any authorized representative; and a comprehensive description of the genuine goods. Product identification materials—such as photographs, packaging samples, and distinguishing features—are particularly important in helping customs officers identify suspected infringing goods. A recordation remains valid for two years from the date of approval. It may be renewed for additional two-year terms, provided that the renewal application is filed within the thirty days prior to expiry for marks and up to thirty days in advance of the expiry date for copyrights, in accordance with
Read More
June 29, 2026
Thailand’s cabinet has approved the draft Act on Liability for Defective Goods, commonly called Thailand’s “Lemon Law.” The Draft Act is currently pending consideration by Parliament. The draft law aims to strengthen buyers’ position in pursuing cases against sellers. While the Civil and Commercial Code offers provisions governing liability for defective goods, it is difficult in practice for buyers to successfully make a claim against sellers, particularly where defects are latent and not discoverable at the time of sale or delivery. By introducing product-specific rules and clearer remedies, the new law is intended to modernize Thailand’s consumer protection framework and align it more closely with international standards, and to help relieve the buyer’s burden of proof against the seller in product liability cases. If enacted, the draft act will take effect 180 days after publication in the Government Gazette, giving businesses a transition period to assess their compliance obligations. This article provides an overview of the key provisions of the draft act and highlights some practical considerations for businesses operating in Thailand. Scope and Key Definitions The draft act applies to sellers—defined as persons who sell goods in the ordinary course of business—and protects buyers, a term defined broadly to include not just the original purchaser but also transferees and successors in title. This expands the class of people who can bring claims. The law does not apply to used goods, live animals, or goods exempted by future ministerial regulation. It also leaves intact any separate warranties, promises, advertisements, or other guarantees a seller has given; those remain enforceable alongside the new statutory rights. General Liability for Defective Goods Sellers are liable for defects that exist at the time of delivery, regardless of whether the seller knew about them. Liability arises where a defect reduces: The benefit intended under
Read More
June 24, 2026
Patent enablement requirements are provided under Article 102 of Vietnam’s Law on Intellectual Property (IP Law). In particular, a patent specification must “fully and clearly disclose the nature of the invention to such an extent that, based on the specification, a person having ordinary skill in the relevant art can implement the invention.” In pharmaceutical and biotechnology patents, this requirement is more complicated and subject to more rigorous assessment. The Patent Examination Guidelines (Guidelines) of the Intellectual Property Office of Vietnam (IP Office) were amended in March 2026 to introduce Annexes III and IV for the pharmaceutical and biotechnology sectors, in which Annex III provides detailed guidelines on the assessment of specification requirements. These amendments were made under a project for strengthening capacity in industrial property examination between the Japan International Cooperation Agency (JICA) and the IP Office. Annex III provides detailed instructions on how examiners assess enablement in a pharmaceutical or biotechnology application, and offers examples of acceptable and unacceptable descriptions with regard to the enablement aspect. Enablement Requirements in Pharma and Biotech Patents Article 12.7 of Circular 10/2026/TT-BKHCN (Circular 10) adds to the requirements of Article 102 of the IP Law that the description must demonstrate the novelty, inventive step, and industrial applicability of the technical solution. For pharmaceutical composition subject matters, Article 12.9 of Circular 10 sets out that the description must present the results of clinical trials and/or the pharmacological effects of the claimed pharmaceutical composition, and must include at least the following information: Substance/mixture used. Testing method (system) employed. Information on the test results. Correlation between the pharmacological effects obtained from the tests and the application of the pharmaceutical product in the prevention, diagnosis, and treatment of diseases. The Guidelines note that pharmacological study results should be presented in a quantified manner, and pharmacological
Read More
June 22, 2026
Arbitrator independence and impartiality form the cornerstone of a legitimate arbitral process. Under section 19 of the Thai Arbitration Act B.E. 2545 (2002), prospective arbitrators must disclose circumstances likely to give rise to justifiable doubts as to their impartiality or independence, and existing arbitrators must do so throughout proceedings. This mirrors article 12 of the UNCITRAL Model Law. Yet despite this clear mandate, practical implementation varies significantly across Thailand’s arbitration landscape. Background Thailand’s two principal arbitration institutions, the Thai Arbitration Institute (TAI) and the Thailand Arbitration Center (THAC), both maintain procedures for addressing arbitrator challenges and require compliance with the statutory disclosure obligation. Under both sets of rules, any party wishing to challenge an arbitrator must submit a challenge application within fifteen days of becoming aware of the relevant facts, and a committee is appointed to consider the matter on a case-by-case basis. The TAI additionally prescribes its Code of Ethics and Conduct for Arbitrators to further emphasize the expectation of impartiality and transparency. However, Thailand’s arbitration ecosystem extends well beyond the TAI and THAC. Several sector-specific institutions also administer arbitral proceedings, including the Thai Commercial Arbitration Office under the Board of Trade of Thailand, the Arbitration Centre of the Office of the Insurance Commission, the Arbitration Centre of the Securities and Exchange Commission, the Office for the Prevention and Resolution of Disputes regarding Intellectual Property, and the Arbitration Centre of the Thai General Insurance Association. These institutions each operate under their own procedural rules, which were developed to serve particular industries and dispute profiles. The procedural mechanisms for securing and documenting an independence declaration are not uniformly established across these forums. Consequences of Procedural Inconsistency This creates a notable gap. Not all arbitration bodies have a formalized procedure requiring written independence statements before proceedings commence. Some tribunals proceed
Read More