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Vietnam: Asia’s Newest IT and Outsourcing Tiger

Pages: 1 2 3

3.4. Intellectual Property (IP) Protection
Immediately upon accession to the World Trade Organisation (WTO) on January 11th 2007, Vietnam agreed to implement the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement. In addition, Vietnam effectively consolidated previously scattered regulations on intellectual-property rights (IPR) with a rivised Civil Code that was implemented on January 1st 2006 along with a Law on Intellectual Property that was implemented on July 1st 2006 that followed by a number of decrees. Moreover, Vietnam has ratified several international conventions that govern copyright and trademark protection.

Nevertheless, in the 2009 International Property Rights Index by the Property Rights Alliance, Vietnam ranked 77th (together with Honduras and Uganda) overall out of 115 countries surveyed and ranked by their general property rights regimes (China ranked 68th) and ranked 94th (together with Bolivia and Indonesia) in the specific category for intellectual property rights (China ranked 70th). In addition, Vietnam ranked 62nd for IP rights protection, 34th for the strength of its patent rights and 90th for copyright policy.

Table 3. The International Property Rights Index 2009

The Property Rights Alliance’s International Property Rights Index 2009 is based upon.

Category			Score	World Rank	Regional Rank
Overall			4.4	77 of 115	14 of 18
Legal and Political Environment			4.4	63 of 115	11 of 18
Judicial Independence			4.3	63 of 115	13 of 18
Rule of Law			3.9	75 of 115	13 of 18
Corruption			3.6	86 of 115	12 of 18
Political Stability			5.6	49 of 115	8 of 18
Physical Property Rights			5.5	69 of 115	15 of 18
Property Rights Protection			5.3	71 of 115	14 of 18
Registering Property			8.0	43 of 115	10 of 18
Ease of Loan Access			3.0	77 of 115	15 of 18
Intellectual Property Rights			3.4	94 of 115	14 of 18
IP Rights Protection			3.0	88 of 115	16 of 18
Strength of Patent Rights			6.1	68 of 115	13 of 18
Copyright Piracy			1.0	91 of 115	14 of 18
Gender Equality			9.8	47 of 90	7 of 15
Access to Land			10.0	1 of 90	1 of 15
Access to Property Other than Land			10.0	1 of 90	1 of 15
Access to Bank Loans			10.0	1 of 90	1 of 15
Inheritance			10.0	1 of 90	1 of 15
Social Rights			8.9	57 of 90	8 of 15

Source: http://www.internationalpropertyrightsindex.org/vietnam-c113

In addition and in the World Economic Forum’s Networked Readiness Index for 2008-2009, Vietnam ranked #94 (between Turkey and Madagascar) for having a score of 3.04 (1 being weak and not enforced and 7 being strong and enforced) for intellectual property rights protection.

3.5. Infrastructure
Decades of war and isolation has left Vietnam’s infrastructure in poor shape but steady improvements are being made. In fact, the government plans to increase spending on infrastructure to 11% of GDP in the medium term – up from 9% in 2009 [17].

Nevertheless, Vietnam still ranked 70th (between Poland and Montenegro) in the World Economic Forum’s Networked Readiness Index for 2008-2009 but this is an improvement of three ranks from the previous index. Vietnam also ranked #36 (between Finland and Hungary) for having 32.65 telephone lines per 100 people; ranked #107 (between China and Azerbaijan) for having 0.60 Internet servers per million population; ranked #112 (between Nigeria and Cameroon) for having 27.16 mobile telephone subscribers per 100 people; ranked #61 (between Armenia and Greece) for having 9.51 personal computers per 100 people; and ranked #74 (between Morocco and Thailand) for having 1.48 total broadband Internet subscribers per 100 people.

Meanwhile, Vietnam ranked 64th (between Sri Lanka and Indonesia) in the Economist Intelligence Unit’s (EIU) E-readiness Rankings 2009 and it was noted that the country has made substantial progress in recent years in making digital channels available to its citizens (so called “e-participation”).

Table 4. The Networked Readiness Index 2008–2009 Ranking
The World Economic Forum’s Networked Readiness Index takes into account the presence of an ICT-conducive environment and the degree of preparation needed to use ICT along with its actual use by individuals, the business sector and the government. While Vietnam’s ranking (#70) was better than that of the Philippines (#85) and Argentina (#87), it was behind the rankings for Malaysia (#28), China (#46), India (#54), Brazil (#59), Mexico (#67) and some Central and Eastern European countries.

2008–2009 Rank	Country/Economy	Score
1	Denmark	5.85
2	Sweden	5.84
3	United States	5.68
4	Singapore	5.67
5	Switzerland	5.58
6	Finland	5.53
7	Iceland	5.50
8	Norway	5.49
9	Netherlands	5.48
10	Canada	5.41
11	Korea, Rep.	5.37
12	Hong Kong SAR	5.30
13	Taiwan, China	5.30
14	Australia	5.29
15	United Kingdom	5.27
16	Austria	5.22
17	Japan	5.19
18	Estonia	5.19
19	France	5.17
20	Germany	5.17
21	Luxembourg	5.10
22	New Zealand	5.04
23	Ireland	5.03
24	Belgium	5.02
25	Israel	4.98
26	Malta	4.79
27	United Arab Emirates	4.76
28	Malaysia	4.76
29	Qatar	4.68
30	Portugal	4.63
31	Slovenia	4.57
32	Czech Republic	4.53
33	Cyprus	4.52
34	Spain	4.50
35	Lithuania	4.40
36	Barbados	4.38
37	Bahrain	4.38
38	Tunisia	4.34
39	Chile	4.32
40	Saudi Arabia	4.28
41	Hungary	4.28
42	Puerto Rico	4.23
43	Slovak Republic	4.19
44	Jordan 4.19	4.19
45	Italy	4.16
46	China	4.15
47	Thailand	4.14
48	Latvia	4.10
49	Croatia	4.09
50	Oman	4.08
51	Mauritius	4.07
52	South Africa	4.07
53	Jamaica	4.03
54	India	4.03
55	Greece	4.00
56	Costa Rica	3.99
57	Kuwait	3.98
58	Romania	3.97
59	Brazil	3.94
60	Azerbaijan	3.93
61	Turkey	3.91
62	Ukraine	3.88
63	Brunei Darussalam	3.87
64	Colombia	3.87
65	Uruguay	3.85
66	Panama	3.84
67	Mexico	3.84
68	Bulgaria	3.80
69	Poland	3.80
70	Vietnam	3.79
71	Montenegro	3.79
72	Sri Lanka	3.79
73	Kazakhstan	3.79
74	Russian Federation	3.77
75	Dominican Republic	3.76
76	Egypt	3.76
77	Botswana	3.72
78	El Salvador	3.69
79	Macedonia, FYR	3.67
80	Senegal	3.67
81	Trinidad and Tobago	3.67
82	Guatemala	3.64
83	Indonesia	3.62
84	Serbia	3.62
85	Philippines	3.60
86	Morocco	3.59
87	Argentina	3.58
88	Georgia	3.48
89	Peru	3.47
90	Nigeria	3.45
91	Gambia, The	3.44
92	Namibia	3.44
93	Mongolia	3.43
94	Syria	3.41
95	Honduras	3.41
96	Venezuela	3.39
97	Kenya	3.35
98	Pakistan	3.31
99	Moldova	3.30
100	Guyana	3.29
101	Libya	3.28
102	Zambia	3.26
103	Ghana	3.25
104	Tajikistan	3.25
105	Albania	3.23
106	Bosnia and Herzegovina	3.23
107	Mali	3.18
108	Algeria	3.14
109	Mauritania	3.12
110	Malawi	3.12
111	Côte d’Ivoire	3.12
112	Madagascar	3.09
113	Burkina Faso	3.07
114	Armenia	3.06
115	Kyrgyz Republic	3.04
116	Ecuador	3.03
117	Suriname	3.03
118	Lesotho	3.02
119	Tanzania	3.01
120	Uganda	2.98
121	Benin	2.96
122	Paraguay	2.93
123	Cameroon	2.93
124	Mozambique	2.91
125	Nicaragua	2.90
126	Cambodia	2.89
127	Nepal	2.85
128	Bolivia	2.82
129	Ethiopia	2.80
130	Bangladesh	2.70
131	Burundi	2.63
132	Zimbabwe	2.49
133	Timor-Leste	2.47
134	Chad	2.44

Source: http://www.insead.edu/v1/gitr/wef/main/fullreport/index.html

Table 5: The Economist Intelligence Unit’s (EIU) E-readiness Rankings and Scores (2009)
The Economist Intelligence Unit (EIU) assesses the world’s largest economies on their ability to absorb information and communications technology (ICT) and use it for economic and social benefit. Vietnam’s ranking (#64) was behind that of China (#56), India (#58), the Philippines (#54), Argentina (#45), Brazil (#42), Mexico (#40), Malaysia (#38) and nearly all Central and Eastern European countries.

2009 Rank (of 70)	2008 Rank	Country	2009 Score (of 10)	2008 Score
1	5	Denmark	8.87	8.83
2	3	Sweden	8.67	8.85
3	7	Netherlands	8.64	8.74
4	11	Norway	8.62	8.60
5	1	United States	8.60	8.95
6	4	Australia	8.45	8.83
7	6	Singapore	8.35	8.74
8	2	Hong Kong	8.33	8.91
9	12	Canada	8.33	8.49
10	13	Finland	8.30	8.42
11	16	New Zealand	8.21	8.28
12	9	Switzerland	8.15	8.67
13	8	United Kingdom	8.14	8.68
14	10	Austria	8.02	8.63
15	22	France	7.89	7.92
16	19	Taiwan	7.86	8.05
17	14	Germany	7.85	8.39
18	21	Ireland	7.84	8.03
19	15	South Korea	7.81	8.34
20	20	Belgium	7.71	8.04
21	17	Bermuda	7.71	8.22
22	18	Japan	7.69	8.08
23	23	Malta	7.46	7.78
24	28	Estonia	7.28	7.10
25	26	Spain	7.24	7.46
26	25	Italy	7.09	7.55
27	24	Israel	7.09	7.61
28	27	Portugal	6.86	7.38
29	29	Slovenia	6.63	6.93
30	32	Chile	6.49	6.57
31	31	Czech Republic	6.46	6.68
32	38	Lithuania	6.34	6.03
33	30	Greece	6.33	6.72
34	35	United Arab Emirates	6.12	6.09
35	33	Hungary	6.04	6.30
36	36	Slovakia	6.02	6.06
37	37	Latvia	5.97	6.03
38	34	Malaysia	5.87	6.16
39	41	Poland	5.80	5.83
40	40	Mexico	5.73	5.88
41	39	South Africa	5.68	5.95
42	42	Brazil	5.42	5.65
43	43	Turkey	5.34	5.64
44	49	Jamaica	5.33	5.17
45	44	Argentina	5.25	5.56
46	50	Trinidad & Tobago	5.14	5.07
47	48	Bulgaria	5.11	5.19
48	45	Romania	5.07	5.46
49	47	Thailand	5.00	5.22
50	53	Jordan	4.92	5.03
51	46	Saudi Arabia	4.88	5.23
52	58	Colombia	4.84	4.71
53	51	Peru	4.75	5.07
54	55	Philippines	4.58	4.90
55	52	Venezuela	4.40	5.06
56	56	China	4.33	4.85
57	57	Egypt	4.33	4.81
58	54	India	4.17	4.96
59	59	Russia	3.98	4.42
60	63	Ecuador	3.97	4.17
61	62	Nigeria	3.89	4.25
62	61	Ukraine	3.85	4.31
63	60	Sri Lanka	3.85	4.35
64	65	Vietnam	3.80	4.03
65	68	Indonesia	3.51	3.59
66	64	Pakistan	3.50	4.10
67	67	Algeria	3.46	3.61
68	70	Iran	3.43	3.18
69	66	Kazakhstan	3.31	3.89
70	69	Azerbaijan	2.97	3.29

Source: http://graphics.eiu.com/pdf/E-readiness%20rankings.pdf

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