Farmers process coconut coir at a cooperative in Thanh Hóa Province. — VNA/VNS Photo

HÀ NỘI — For years, intellectual property protection in Việt Nam’s cooperative sector largely meant registering trademarks and collective brands. Now, a growing number of cooperatives are looking beyond logos and labels, turning to patents and utility solutions to protect innovation, add value to their products and compete more effectively in increasingly demanding markets.

While trademarks and collective brands have long been the most common forms of intellectual property protection among cooperatives, a growing number are now looking beyond brand recognition and focusing on safeguarding technological innovations and production know-how.

The shift reflects a broader effort by Việt Nam's cooperative sector to move up the value chain and improve competitiveness through innovation.

Innovation advantage

Among the pioneers in this trend is Kỳ Như Cooperative in the Mekong Delta city of Cần Thơ.

The cooperative recently attracted attention after receiving formal acceptance from the Intellectual Property Office of Vietnam for two coordinated patent applications.

One covers a method for producing canned, ready-to-eat featherback fish products, while the other relates to the finished canned food product itself.

The dual patent applications represent a comprehensive intellectual property strategy that protects both the manufacturing process and the final product.

The cooperative said the inventions establish a tightly controlled production process that regulates temperatures throughout multiple stages, from raw material treatment to a two-stage fish-paste mixing technique designed to create the product's characteristic texture.

The process also incorporates intelligent hot-sauce filling and deaeration technology that removes oxygen from the packaging, extending shelf life naturally without the use of preservatives.

Industry observers note that protecting both the production technology and the commercial product creates a more comprehensive legal framework, helping the cooperative establish a sustainable competitive advantage in the marketplace.

The economic benefits of such proactive intellectual property protection can be substantial.

According to experts, cooperatives that focus on intellectual property development, particularly industrial property rights such as patents and utility solutions, can increase the commercial value of their products by 25-40 per cent compared with products that lack legal protection.

Patents also serve as a legal shield against counterfeiting, imitation and intellectual property infringement.

In particular, patents can act as a passport to deeply processed agricultural products, enabling cooperatives to enter major supermarket chains and pursue formal exports to demanding markets such as the European Union, the US and Japan, where requirements related to product quality, traceability and intellectual property protection are becoming increasingly stringent.

Policy support

Recognising the importance of intellectual property in enhancing competitiveness, the Vietnamese Government has introduced a range of policies aimed at supporting enterprises and cooperatives in creating and protecting intellectual assets.

One of the most significant initiatives is the Intellectual Property Development Programme to 2030, approved under Decision 2205 by the Prime Minister.

The programme aims to support intellectual property protection for at least 40 per cent of products participating in the "One Commune One Product (OCOP)" programme, with particular emphasis on technical solutions and inventions that demonstrate practical applications within cooperatives.

Additional support has been incorporated into the 2023 Law on Cooperatives, which took effect on July 1, 2024.

Under Article 20 of the law, the State commits to supporting science and technology applications, innovation activities and intellectual property protection for collective economic organisations.

Meanwhile, Decree 13/2019 on innovation initiatives provides a legal basis for cooperatives to recognise, reward and commercialise innovations developed by their members.

At the local level, several provinces and cities have introduced direct financial support mechanisms.

Under these programmes, cooperatives receiving domestic patents or utility solution certificates may qualify for grants ranging from VNĐ30 million (US$1,140) to VNĐ50 million per protected invention. Support for international intellectual property protection can reach VNĐ100-150 million per patent.

Local departments of science and technology have also allocated funding through science and technology development funds to support patent searches, technology assessments and the preparation of patent specifications, one of the most technically demanding stages of the application process.

Farmers harvest vegetables at a cooperative in Bát Tràng Commune, Hà Nội. — VNA/VNS Photo

Challenges persist

Despite an increasingly comprehensive policy framework, the number of cooperatives holding patents remains extremely limited.

According to industry assessments, most cooperatives continue to focus primarily on trademark or collective trademark registration. Patent and utility solution ownership accounts for less than 1 per cent of the country's more than 35,000 cooperatives.

A case from the northern province of Thái Nguyên highlights the challenge.

Nguyễn Văn Tuấn, founder of Thành Ngân Cooperative, successfully designed and developed a multifunctional agricultural machine tailored for farming in mountainous areas. The innovation led to the establishment of Thành Ngân Cooperative to manufacture and commercialise the equipment.

The cooperative has sold hundreds of machines to farmers in upland areas. However, despite its commercial success, the invention has not yet received patent protection.

Experts say this situation is common across the cooperative sector.

To qualify for patent protection, an invention must satisfy three key requirements: novelty on a global scale, an inventive step and industrial applicability.

Many technical improvements developed by cooperatives are practical innovations designed to address local production challenges but may not meet the threshold of inventiveness required for patent protection.

The patent examination process itself can also be a barrier. Applications typically require between 18 and 36 months for examination, while annual maintenance fees add to the financial burden faced by small- and medium-sized cooperatives.

According to Nguyễn Hữu Cẩn, PhD, acting director of the National Institute of Intellectual Property under the Ministry of Science and Technology, the biggest challenge facing cooperatives and small enterprises today is not a lack of creativity but a shortage of skills needed to transform ideas into legally protected assets.

Drafting patent specifications requires highly specialised legal and technical expertise, capabilities that many cooperative management teams do not possess.

Practical solutions

Experts suggest that expanding intellectual property ownership within the cooperative sector will require a more pragmatic strategy.

One recommendation is for cooperatives to prioritise utility solutions, often referred to as minor patents, which have lower inventiveness requirements and shorter examination periods while remaining suitable for many agricultural production improvements and processing technologies.

Another proposed solution is to strengthen collaboration among government agencies, research institutes, universities and cooperatives.

Under such a model, researchers would contribute core technologies and share ownership of inventions, while cooperatives would focus on commercialising products and bringing innovations to market.

Experts also advocate expanding access to intellectual property advisory services.

Cooperative alliances at provincial and municipal levels could work more closely with intellectual property representatives to establish mobile advisory teams capable of supporting cooperatives throughout the patent registration process.

The trend reflects a broader transformation within Việt Nam’s cooperative sector. Once focused primarily on protecting names and brands, an increasing number of cooperatives are recognising that innovation itself can be a valuable asset — one worth protecting, commercialising and leveraging for long-term growth.— BIZHUB/VNS