Tariffs Are Reshaping Supply Chains — Is Your Trademark Strategy Vietnam-Ready?

Article Originally Published by IPWatchdog, 17 Apr. 2025.

Rerouting your IP strategy takes legal foresight. Vietnam might be a top contender thanks to its proximity to China and relatively favorable tariff treatment.

As tariffs and the trade war with China intensify, companies that have long relied on Chinese manufacturing are increasingly exploring alternatives across Asia—with Vietnam emerging as a top contender. The country offers a compelling combination of lower labor costs, strategic trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) , the EU-Vietnam Free Trade Agreement (EVFTA), and  Regional Comprehensive Economic Partnership (RCEP), and a rapidly improving infrastructure that supports large-scale production and export.

But while operational advantages in Vietnam are becoming clearer, many companies are now grappling with the lesser-known—but equally crucial—implications of intellectual property (IP) in this new environment. For companies thinking about moving manufacturing operations to Vietnam or expanding their brand presence there, understanding how trademark law operates locally is critical.

Let’s explore Vietnam’s IP system through the lens of three important issues: trademark cancellation, trademark use, and enforcement—factors that can have significant implications for brand protection strategies in the region.

1. Trademark Cancellation in Vietnam: Can You Cancel a Mark Just Because It’s Not Being Used?

Vietnamese trademark law provides the option for third parties to file a non-use cancellation against registered marks. However, the process differs from other jurisdictions like the United States or EU.

How It Works

Step 1

Obtain an official confirmation of non-use from the Vietnam Industry and Trade Information Center  (VITIC) (under the Ministry of Industry and Trade). While not legally required nor is this a mandatory step, this is a common practice, as it serves as credible evidence from a competent authority.

Step 2

Submit a cancellation request with the Intellectual Property Office of Vietnam (IPVN). If the trademark owner fails to respond or provide sufficient evidence of use, the registration may be cancelled.

The good news is that the process is relatively cost-effective and does not require litigation or proof of “intent not to use,” making it significantly easier than in countries like Indonesia or Thailand to go after squatters and remove roadblocks.

2. What Counts as Trademark Use in Vietnam? Is Manufacturing Enough?

A key question for businesses shifting manufacturing to Vietnam is whether producing goods locally for export qualifies as “use” under trademark law and can therefore defend a nonuse attack should a third party decide to challenge your right.

Vietnamese law defines use broadly, as shown below, and very similar to what most brands are already familiar with in the U.S.:

• Affixing the mark to goods or packaging
• Circulating or advertising goods bearing the mark
• Importing or offering the marked goods for sale

As shown above, the law is noticeably silent on whether manufacturing for export alone counts as use. In practice, if companies can provide documentation like invoices, production orders, and packaging showing the trademark in connection with goods made in Vietnam, IPVN may accept it as valid use. Still, the absence of domestic sales or advertising makes this a gray area.

For example, take my firm name, ELIGON. If the firm registered the mark in uppercase but hasn’t actively used it in connection with the listed goods or services, it could be subject to cancellation. However, close to the five-year deadline, we could file a new application for a variation of the mark (e.g., eligon or a stylized version). This would preserve rights and maintain continuity, giving us the option to launch in Vietnam down the road—even if the original registration is cancelled.

3. Scope of Protection and Enforcement

Vietnam’s trademark system is pragmatic when it comes to enforcement and protection scope. This can be seen by the below examples.

A. Do You Need an Identical Match?

Scope of Goods: Trademark protection is based strictly on the goods/services listed in the registration. For instance, if a registration covers “resistance bands,” protection applies specifically to that item. However, would a registration covering resistance bands allow the brand owner to go after the same/similar marks, covering related items?

Vietnam provides no clear guidance on cross-reference between goods or classes. Good news is that similar to the U.S. practice, enforcement may still be viable by arguing similarity in:

• Function, nature, or purpose
• Channels of trade or consumer perception

Since resistance bands (Class 28) and yoga mats (Class 27) are often used together and sold through similar outlets, a connection can be made — this is great news because in most other Asian countries, one must prove the senior brands are “well known” to allow one to go after goods/services beyond the registration scope (the so-called “cross class protection) but Vietnam does allow for similarity arguments; that said, one must submit sufficient arguments and supporting evidence for this to happen.

B. Can a Trademark Owner Enforce Its Rights Even without Retail Activity in Vietnam?

Yes, enforcement is still possible. A trademark owner can bring an infringement action even if it does not have any retail presence or direct sales activity related to the registered goods or services.

However, the absence of retail use may leave the mark vulnerable to a non-use cancellation—including by the party being targeted for enforcement. In such cases, a sophisticated defendant could file to cancel the senior mark, effectively undermining or even taking away the enforcement action.

Example: Suppose a U.S. brand owns a Vietnamese trademark registration for “ZENBOTTLE” for reusable drinkware. The brand has been manufacturing in Vietnam for export only and has never sold or promoted the products locally. If a local Vietnamese company begins using “ZENBOTTLES” in domestic sales, the U.S. brand may attempt to enforce its trademark by going after this local company. However, the Vietnamese company could respond by filing a non-use cancellation—claiming the U.S. brand hasn’t used the mark in Vietnam over the past five years— wiping out the US company’s local rights and taking away the very basis of the enforcement action.

Conversely, if you’re thinking of going after a third party in Vietnam but haven’t put your mark to use and it’s been registered for more than five years, think twice. You may trigger a cancellation counterattack that strips you of your rights entirely.

Don’t Be Blindsided

Rerouting the supply chain takes logistics know-how. Rerouting your IP strategy takes legal foresight. Vietnam might be a top contender thanks to its proximity to China and relatively favorable tariff treatment (emphasis on “relative”). The status, of course, may change with the next announcement or mood swing.

But clearing tariff risk is just step one. You also need to protect against more familiar threats—like dormant trademarks, bad-faith squatters, or non-use cancellations. Tariffs may guard your front door, but if your IP strategy isn’t solid, you could still get blindsided at the back—jeopardizing the very supply chain you’ve just restructured.