Peeling the Onion Skins: Assessing Securitization of Intellectual Property Right for Private Sector Development in China and Vietnam

Abstract

The rise of the knowledge economy and the growing importance of intangible assets have prompted governments to explore innovative financing mechanisms centered on intellectual property rights (IPR). In 2025, China and Vietnam introduced ambitious policy frameworks to strengthen the private sector, including China’s Private Sector Promotion Law and Vietnam’s Resolution No. 68-NQ/TW. Both emphasize the necessity of dismantling structural barriers and diversifying access to capital through IPR. Against this policy backdrop, IPR securitization emerges as a theoretically promising yet legally and institutionally demanding tool. This paper examines the intersection of IP law and securitization regimes in both jurisdictions to assess whether IPR securitization can serve as a viable instrument for private-sector development. Moving from general conceptual grounding, through jurisdictional policy context, into doctrinal legal analysis, and finally to applied policy recommendations, the paper concludes that IPR securitization is not a one-size-fits-all solution. In other words, it may support the development of the private economy as a policy option, but only under legal alignment, institutional maturity, and an incremental, context-sensitive reform strategy. By highlighting the prerequisites for the successful implementation of IPR securitization, the paper contributes to ongoing debates on sustainable private-sector growth, innovation finance, and the legal adaptations needed to bridge the gap between intangible capital and market liquidity.