The U.S. Trade Representative has formally initiated a Section 301 investigation into Vietnam’s acts, policies, and practices related to intellectual property protection and enforcement. The action follows Vietnam’s designation as a priority foreign country in the 2026 Special 301 Report, citing the country’s persistent failure to address long-standing IP concerns despite years of bilateral engagement.
Key Dates
• April 30, 2026: Vietnam identified as a priority foreign country in the 2026 Special 301 Report.
• May 29, 2026: Section 301 investigation formally initiated.
• May 29, 2026: USTR opens public docket for written comments.
• July 2, 2026 (11:59 p.m. EDT): Deadline to submit written comments for consideration
Why Vietnam Was Designated
The 2026 Special 301 Report identified five primary grounds for Vietnam’s priority foreign country designation:
• Persistent failure to combat online piracy, Vietnam remains one of the highest sources of online piracy in the Asia-Pacific region, with weak criminal penalties failing to deter infringement.
• Insufficient enforcement against counterfeiting, counterfeit goods remain openly sold in physical and e-commerce markets, with enforcement declining by 50 percent in 2025 compared to the prior year.
• Lack of effective border enforcement, Vietnam’s customs authorities rarely exercise their ex officio authority to seize suspected counterfeit goods, and no such authority exists for in-transit goods.
• Failure to act against unlicensed software, Vietnamese authorities have not conducted significant enforcement against corporate use of unlicensed software in the past three years.
• Absence of criminal measures for signal theft, Vietnam’s criminal code has not been updated to address satellite and cable signal theft despite recent amendments to its IP law.
What This Means for Businesses
USTR is now seeking public comments on whether Vietnam’s IP practices are unreasonable or discriminatory, whether they burden U.S. commerce, and what actions, including tariff and non-tariff measures, should be considered. The Trade Representative has up to six months from initiation to make a determination, with a possible three-month extension.
Companies doing business in Vietnam or relying on IP-protected products in the Vietnamese market should monitor this investigation closely!
ASK AlbaTM
Section 301 investigations can result in significant tariff actions and market access changes that affect global supply chains. Alba’s trade policy and compliance experts help companies assess exposure, prepare public comments, and develop strategies in response to evolving U.S. trade enforcement priorities.
Contact our team to learn how these developments could impact your business: https://albawheelsup.com/contact/
