How much is fine for misappropriation of trade secrets in Vietnam?

What are trade secrets in Vietnam?

Pursuant to the provisions of Clause 23, Article 4 of the 2005 Intellectual Property Law, amended by Clause 2, Article 1 of the 2009 Amended Intellectual Property Law and amended and supplemented by Clause 1, Article 1 of the 2022 Amended Intellectual Property Law, regulations determined as follows:

Explanation of words

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22. Geographical indication (GI) means the sign that indicates the geographical origin of the product from a specific area, region, territory or country.

22a. Homonymous geographical indications (GI) are those that are spelled or pronounced alike.

23. Trade secret means information obtained from financial or intellectual investment activities, which has not yet been disclosed and can be used in business.

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Thus, a business secret is information obtained from financial and intellectual investment activities that has not been disclosed and can be used in business in Vietnam.

How much is fine for misappropriation of trade secrets in Vietnam? (Image from the Internet)

How much is fine for misappropriation of trade secrets in Vietnam?

Pursuant to the provisions of Article 16 of Decree 75/2019/ND-CP regulating misappropriation of trade secrets as follows:

Misappropriation of trade secrets

1. A fine ranging from VND 200,000,000 to VND 300,000,000 shall be imposed for committing one of the following violations:

a) Accessing or obtaining trade secrets by taking actions against security measures adopted by the older of such trade secrets;

b) Disclosing or using trade secrets without the permission of the holder of such trade secrets.

2. Additional penalties:

a) The exhibits and instrumentalities for committing the administrative violation shall be confiscated;

b) Profits illegally obtained from the administrative violation shall be confiscated.

Thus, the act of misappropriation of trade secrets in Vietnam can be administratively sanctioned in the form of a fine from 200,000,000 VND to 300,000,000 VND.

In addition, violators will also have material evidence and means used to commit administrative violations of competition confiscated and profits earned from committing violations.

Note: The maximum fine level specified above is the penalty level applicable to violations committed by organizations. For individuals who commit the same administrative violation of competition, the maximum fine is equal to half of the maximum fine for organizations (Clause 7, Article 4, Decree 75/2019/ND-CP)

Do employees have to agree to protect trade secrets in Vietnam?

Pursuant to Article 21 of the 2019 Labor Code regulating the content of labor contracts

Content of labor contract

1. An employment contract shall have the following major contents:

a) The employer’s name, address; full name and position of the person who concludes the contract on the employer’s side;

b) Full name, date of birth, gender, residence, identity card number or passport number of the person who concludes the contract on the employee’s side;

c) The job and workplace;

d) Duration of the employment contract;

dd) Job- or position-based salary, form of salary payment, due date for payment of salary, allowances and other additional payments;

e) Regimes for promotion and pay rise;

g) Working hours, rest periods;

h) Personal protective equipment for the employee;

i) Social insurance, health insurance and unemployment insurance;

k) Basic training and advanced training, occupational skill development.

2. If the employees’ job is directly related to the business secret, technological know-how as prescribed by law, the employer has the rights to sign a written agreement with the employee on the content and duration of the protection of the business secret, technology know-how, and on the benefit and the compensation obligation in case of violation by the employee.

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Thus, according to the above regulations in Vietnam, employees must agree to protect business secrets when directly related to business secrets or technology secrets.

At this time, the employer has the right to agree in writing with the employee on the content and duration of protection of business secrets, protection of technology secrets, rights and compensation in case of violation in Vietnam. 

Best regards!