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June 30, 2025

Vietnam Shifts Some IP Duties to the Provincial Level

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Vietnam is making notable strides in decentralization, aiming to grant greater autonomy to local government entities to streamline administrative procedures. As part of this effort, the government issued Decree No. 133/2025/ND-CP on decentralization of state management of the Ministry of Science and Technology dated June 12, 2025 (Decree 133). Effective from July 1, 2025, Decree 133 decentralizes and delegates numerous state management functions—including in intellectual property (IP) and technology transfer—to provincial-level People’s Committees (PCs). This reform signals a profound shift in how IP rights are administered and enforced across Vietnam. While this offers new opportunities for IP owners, agents, and innovators, it also introduces additional operational complexities.

Impact on IP and Technology Transfer

Decree 133 significantly reallocates responsibilities in IP and technology transfer, primarily to provincial-level PCs. Provincial PCs and other provincial authorities are now empowered to handle a wide range of tasks, including but not limited to the following:

  • Issuance of duplicates and reissuance of certificates of registration.
  • Registration of license agreements for the transfer of usage rights for industrial property objects (e.g., trademarks, patents) and recording amendments, extensions, or early terminations of such agreements.
  • Enforcing decisions on compulsory licensing of patent use rights.
  • Evaluation and approval of technology transfer contracts—a key step in facilitating localized technological advancements.
  • Permitting the establishment of foreign-invested scientific organizations and their branches, to encourage foreign direct investment in local R&D and technology development.
  • Approval of provincial-level R&D tasks, aligning with local socio-economic development priorities.

Legal Implications

The decentralization and delegation brought forth by Decree 133 carry several significant legal implications:

  • Echoing Decree 133, the Intellectual Property Office of Vietnam issued Notification No. 2351/TB-SHTT on June 26, 2025, announcing the cessation of 19 administrative procedures at the national level. Specifically, from July 1, 2025, the IP Office will no longer accept requests related to procedures that have been delegated to provincial-level PCs under Decree 133. Requests submitted to the IP Office before this date will continue to be processed by the IP Office in accordance with previous regulations.
  • While aimed at streamlining procedures, the shift places significant demands on provincial authorities, requiring a robust pool of qualified IP and technology transfer professionals. This necessitates significant investment in capacity building, training of personnel, and establishment of robust internal procedures to handle the new functions effectively.
  • Despite overall guidance from the Ministry of Science and Technology (MOST), there might be subtle variations in the implementation of Decree 133 across different provinces. Businesses and IP agents will need to be diligent in understanding specific provincial guidelines and practices.

Potential Challenges and Areas for Clarification

  • Alternative option for duplicates of protection titles: In preparation for this transition, on June 3, 2025, the IP Office launched a system for issuing certified electronic copies of applications and registration certificates. Upon approval of a request, an applicant will receive an email containing the application or registration number, a document link, and a lookup code. These electronic documents carry the same legal value as physical copies, providing a more convenient alternative for IP owners—especially amid the transition to local authorities. However, it remains unclear whether these electronic copies can be used for procedures such as assignment or recordal of changes to IP registrations, which could impact how effectively IP owners can navigate the new decentralized system.
  • Coordination between central and local authorities: One of the immediate challenges highlighted by legal practitioners is the need for clear coordination, especially for procedures that span both central and local jurisdictions. Clear coordination mechanisms are essential to avoid administrative overlap and delays.
  • Power of attorney requirements: Clarity is needed on whether previously submitted power of attorney documents to central authorities can be reused for provincial filings or if new originals will be required.
  • Consistency and uniformity: Ensuring consistent application of IP laws and technology transfer regulations across all provinces will be paramount to prevent discrepancies and maintain a level playing field for businesses. The supervisory role of MOST will be critical in this regard.

Temporary Shift for Testing and Adjustment

Decree 133 is valid until March 1, 2027, unless extended or replaced earlier. This timeframe coincides with the restructuring of local administrative units and suggests that the decentralization of IP procedures is being implemented as a pilot phase, allowing time for adjustments based on real-world feedback.

Overall, Decree 133 represents a bold step towards a more decentralized and efficient science and technology administration in Vietnam. While it brings promising prospects for expediting processes and fostering local innovation, successful implementation will rely heavily on the issuance of clear and practical guidelines from MOST, as well as the proactive development of robust administrative mechanisms and human resources at the provincial level.

Businesses and IP rights holders are advised to stay abreast of the forthcoming detailed instructions and adapt their strategies accordingly to navigate this evolving regulatory administrative landscape.

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