Risk-sharing between the State and businesses is essential to unlock intellectual property for economic growth

This was the view expressed by Dr Le Xuan Nghia, Director of the Development Consultancy Institute and a member of the Prime Minister’s Policy Advisory Council, in an interview with Nhan Dan (People) Newspaper on ways to unblock intellectual property.

Question: Some people believe Viet Nam has already produced a fair amount of scientific research, yet the rate of commercialisation remains low. In your view, what is the biggest “bottleneck” in this situation?

Dr Le Xuan Nghia: In fact, compared with countries around the world, not only developed economies but also within Asia, the number of Vietnamese inventions registered internationally remains low. The biggest bottleneck lies in two main factors.

First, there is a lack of linkage between research, production and business. In developed countries, large corporations all have their own research institutes and affiliated universities, creating an ecosystem in which theory goes hand in hand with practice. Scientific research therefore closely follows real-world needs and has a high potential for commercialisation.

By contrast, in Viet Nam, the number of businesses capable of research and development (R&D) remains very limited. Initiatives tend to be fragmented, arising from small-scale production and lacking a deep research foundation, so they struggle to meet international registration standards, let alone be commercialised on a large scale.

Second, there is a shortage of talent and research conditions. Science and technology cannot develop without a high-quality workforce. Meanwhile, countries ahead of us all have well-designed strategies to attract global talent, together with appropriate remuneration and research conditions.

In addition, research activities require large financial resources, from laboratories and trial production lines to the cost of repeated testing and error. This is something that most Vietnamese businesses are still unable to meet.

Q: Viet Nam has issued policies to promote intellectual assets, but they have not really encouraged many business inventions. What, in your view, are we still lacking?

A: To promote innovation, Viet Nam needs to complete three main policy pillars in a synchronised way. First, it is necessary to build a closely connected model linking businesses, research institutes and universities. Large businesses must play the central role, proactively investing in training and research rather than relying entirely on the public sector.

Second, we need to develop systems of research institutes and R&D centres within businesses, while also putting in place strong mechanisms to attract and retain talent. High-quality science and technology personnel are precisely the decisive factor in creating valuable inventions.

Third, a financial mechanism for sharing risks in scientific research must be established. Based on international experience, the State needs to participate by supporting part of the funding for key research projects, especially in core technologies. The common model is for the State, investment funds and businesses to contribute capital together, thereby reducing risk and encouraging long-term investment.

Scientific research is an area with very high risk; not every project succeeds. Therefore, without an appropriate risk-sharing mechanism, businesses will not dare to invest.

Q: Infringement of intellectual property rights, especially in the digital environment, remains widespread. In your opinion, what is the biggest difficulty in tackling this problem?

A: The biggest difficulty at present lies not only in management techniques, but more fundamentally in the fact that social awareness of intellectual property is still inadequate and not taken seriously enough.

A fairly common reality is that unlicensed software is used, while creative works in music, the visual arts and digital content are still widely copied. This creates an environment in which the value of intellectual property is not properly respected.

In addition, the enforcement system still has certain limitations. Although legal regulations already exist, the mechanisms for monitoring and handling violations are not strong enough. The authorities lack the tools, resources and technical infrastructure to detect, prove and deal with violations.

Another issue is that we lack a system for testing and certifying product quality to international standards. While many countries have invested boldly in inspection centres, helping them quickly identify genuine and counterfeit goods, Viet Nam still lacks similar institutions.

This means that handling violations takes longer and deterrence is weaker. To build a healthy intellectual property market, businesses and individuals must comply with the principle of paying for the use of intellectual assets, while penalties must also be strengthened to form a habit of respecting copyright.

When the market operates on transparent and fair principles, businesses will actively view intellectual property as a strategic asset.
Dr Le Xuan Nghia, Director of the Development Consultancy Institute

Q: Many businesses only care about registering intellectual property once a product has succeeded, or even after their brand has already been registered abroad by someone else. How can this mindset be changed, in your opinion?

A: This is the consequence of a long period in which we have underestimated the role of intellectual assets. Businesses have only focused on production and trade, without viewing intellectual property as part of their development strategy.

To change this, the first step is to raise awareness through strict legal enforcement. When violations are handled regularly, the cost of infringement rises and businesses will be forced to change their behaviour.

At the same time, a specialised intellectual property monitoring system is needed, with sufficient capacity to detect and handle violations. Law only works effectively when it is accompanied by a sufficiently strong enforcement apparatus.

In addition, investment in quality-testing and product-authentication infrastructure is essential. When there is a reputable inspection system, and products are clearly certified in terms of quality and origin, businesses will have greater motivation to register and protect their intellectual property.

Another important factor is building a business culture that respects creative value. When the market operates on transparent and fair principles, businesses will actively view intellectual property as a strategic asset.

Q: How can intellectual property truly become a “development resource” for the economy?

A: For intellectual property to become a growth driver, three foundational factors must be implemented in a synchronised way. First, we need to develop high-quality human resources, especially a team of talented people in science and technology. This is a prerequisite for creating valuable intellectual products.

Second, investment in research and development must be increased, covering both the public and private sectors. Research institutes, universities and businesses need financial and infrastructure support to carry out long-term research projects.

Third, an effective system for protecting and commercialising intellectual property must be built, including a legal framework, a quality-inspection system and a technology trading market.

When intellectual property is properly protected and valued, it truly becomes a resource for development. Experience from countries such as the Republic of Korea shows that prioritising the use of domestic products is not only a consumer choice but also a strategy to support the development of local businesses.

Thank you for your insights!