Many startups in Vietnam, despite having sound business models, fail to pay adequate attention to intellectual property (IP) issues, making it difficult to convince investors to commit financially.

This observation was made by Dam Quang Thang, Chairman of the National Innovation and Startup Advisory Council, during a seminar titled "Sharing IP Education Experiences for High School Students in Vietnam," organized by the Intellectual Property Office on March 24.

Intellectual property: An overlooked competitive advantage

According to Thang, besides having a solid business model, intellectual property assets are vital for maintaining a competitive edge within the innovation ecosystem. Unfortunately, awareness of IP remains insufficient among many enterprises.

“Numerous startups possess excellent business models, yet they often lack adequate understanding of intellectual property,” Thang said. “Currently, approximately six to seven out of every ten businesses face challenges related to intellectual property.”

One key objective for innovative businesses is capital divestment. However, without prioritizing IP rights establishment, companies face significant challenges in convincing investors to purchase their assets at high valuations.

This situation has compelled support organizations, such as the National Innovation and Startup Advisory Council, to dedicate substantial resources to assist businesses. Thang proposed making IP education a mandatory part of training for businesses, communities, and organizations supporting the innovation ecosystem.

In addition, he recommended establishing intermediary institutions, such as the Intellectual Property Science Institute and the Valuation Institute, to assist businesses in establishing and protecting their IP rights.

The Advisory Council also shared its management model for exploiting intellectual property assets, allowing companies to leverage their IP to secure bank loans or contribute to capital. “There is significant intellectual property potential within the community, but it remains largely untapped,” Thang remarked.

Integrating IP education with economic growth

Luu Hoang Long, Director of the Intellectual Property Office, emphasized that in the context of global economic integration, intellectual property plays a crucial role in fostering innovation, enhancing technological capacity, and boosting national competitiveness.

“To develop a sustainable national intellectual property system, it is essential to educate the younger generation, especially high school students, about IP,” Long stated. He noted that Vietnam currently has about 23.2 million high school students, making up nearly a quarter of the population, and this demographic holds great potential for entrepreneurship and IP awareness, which will contribute to the nation’s future economy.

Altayework, Head of Online Training at the World Intellectual Property Organization (WIPO) Academy, stressed that innovation is the foundation of progress, and intellectual property is its most essential companion.

According to WIPO’s "Global Intellectual Property Asset Index 2024," the number of patent applications worldwide hit a record high of nearly 3.5 million in 2023, with China, the US, and Japan leading the way. As of November 2024, data from Darts-ip indicated over 2.4 million copyright-related lawsuits globally.

Experts estimate that global losses due to IP theft, infringement, and counterfeit goods reach hundreds of billions of dollars annually. In the US alone, the International Trade Commission reported that IP-related cases resulted in approximately USD 600 billion in damages in 2018.

The Vinh