A new Governmental Decree governing intellectual property matters was signed and came into force on October 24, 1996. Vietnam also recently joined the ASEAN in the hope that this will spur economic growth.

To be patentable, an invention must relate to a technical solution, involve an inventive step and be industrially applicable. Among other things, methods for the prevention, diagnosis and treatment of diseases, computer software, layout designs of integrated circuits, mathematical models, animals or plant varieties are not patentable. There is also a requirement that the owner of the right "having special impact on national security and defense, or the protection of public health or environment" is obligated to use or license someone else to use the invention in Vietnam.

To be patentable worldwide novelty having regard to both publications and public use is required. Additionally the invention must not be identical with what is described in a copending Vietnamese application having an earlier priority date. However, unauthorized publications will not be regarded as novelty-destroying if a Vietnamese application is filed within 6 months of that publication.

For patents granted on applications filed under the new decree of October 1996, the term of a patent is 20 years from its filing date. Under the former law the term of a patent was 15 years from the priority date. Under the transitional provisions it appears that patents granted on applications filed before July 1, 1996 may continue to be governed by this term.

All patent applications are subject to a formalities examination. However, for applications filed after July 1, 1996, substantive examination will only be undertaken after it has been requested. If no request is filed within 3 years of the filing date the application will lapse.