Vietnam has a population of nearly 100 million. In 2021, Vietnam consumed 4.159 million liters of alcoholic beverages, becoming the ninth largest alcohol consumer in the world. This high level of consumption has brought huge profits to beverage companies. In 2022, the revenue of the largest beer manufacturer exceeded VND35.325 trillion, or approximately US$1.506 billion.
However, fierce competition among brands results in cutthroat marketing, making trademark protection a vital priority .
Vietnamese Intellectual Property Law stipulates that if the trademark owner or licensee has not used the trademark without justifiable reasons for 5 consecutive years before requesting to terminate the validity, the validity of the trademark registration will be terminated at the request of a third party, but at least 3 years before the request for termination, the validity of the trademark registration will be terminated. Except for those who start or resume use after 6 months.
The Vietnamese government has issued strict regulations on alcohol advertising and sales. Currently, trading in alcoholic beverages is a conditional business subject to government restrictions. Importing alcohol into the Vietnamese market is a time-consuming process that can take several years due to the rigorous and complex procedures involved. Secondly, the trademark owner may not have the right conditions to launch the product in the Vietnamese market, so the trademark rights may not be immediately enforceable in Vietnam.
Vietnam’s alcoholic beverage market is highly competitive, with domestic alcohol brands vying for market share in Vietnam. Consumers also show preference for branded products. This directly leads to trademark theft and unfair use of competitors’ trademarks. Therefore, trademarks in Vietnam will face the following situations:
——The trademark has been misappropriated by others;
——Wasting a lot of time getting involved in legal proceedings;
As a result, the business plan of the trademark owner may be greatly affected.
Solution: Trademark tracking to prevent unexpected events
If sufficient evidence of use of the trademark in Vietnam cannot be provided and there is no valid reason for not using the trademark for up to 4 years (from the date of registration or the date of last use of the trademark in Vietnam), the trademark owner is advised to resubmit a new Trademark application.
