IMPACT OF INTELLECTUAL PROPERTY RIGHTS PROTECTION ON VIETNAM'S EXPORTS: THE ROLE OF THIRD COUNTRIES

Abstract

The objective of this study is to analyze the impact of increased protection of intellectual property rights in the importing country on Vietnam's exports to these countries, in the context of the emergence of a "third country". The study used a mixed dataset covering Vietnam's exports to 79 partner countries in the period 2006-2017. The systematic GMM estimation method was applied in the study. Research results show that when there was a "third country", the increased protection of intellectual property rights in the importing country stimulated Vietnam to increase exports to the importing country market (market expansion effect). However, "market power effect" was not created perfectly by Vietnam. The reason to explain for this situation is that there was no differentiation of Vietnam export in the international market. Therefore, Vietnam should carry out research and development of goods with its own identity and superiority. At the same time, for the imitation activities restrictions from the "third countries", Vietnam needs to accelerate the pace of product innovation so that it is faster than the imitation rate of "third countries".