[VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property

On May 29, 2026, after designating Vietnam as a Priority Foreign Country (PFC) in the 2026 Special 301 Report released on April 30, U.S. Trade Representative Jamieson Greer officially initiated an investigation into Vietnam under Section 301 of the Trade Act of 1974. According to USTR's statement, the investigation will examine whether Vietnam's delayed resolution of long-standing concerns over the protection and enforcement of intellectual property rights constitutes unreasonable or discriminatory acts, policies, or practices that burden or restrict U.S. commerce. This is the next step in a process that the business community has closely followed since early May, when Vietnam, for the first time in 13 years, was placed by a trading partner in the highest warning category under the Special 301 mechanism.

In the statement accompanying the announcement, Ambassador Greer said: "Although Vietnam has recently taken some steps to address the intellectual property concerns that the United States has identified for many years in the Special 301 Report, intellectual property infringement in Vietnam continues to undermine the competitiveness of U.S. creators and innovators." The United States expects Vietnam to address these long-standing concerns, including a range of intellectual property enforcement issues, in a sustainable manner that deters future infringement.

Procedurally, this Section 301 investigation follows a clear legal roadmap and timeline. According to the notice dated May 29, 2026, USTR also opened its public comment portal (https://comments.ustr.gov/s/) and requested consultations with the Government of Vietnam under Section 303(a) of the Trade Act. Because the scope of the investigation does not involve a trade agreement, no formal dispute settlement mechanism under a trade agreement applies. Interested parties must submit written comments through USTR's electronic portal no later than 11:59 p.m. on July 2, 2026 to ensure consideration. The U.S. Trade Representative must issue the investigation findings and determine any responsive action, if any, within no more than six months from the date of initiation; in certain circumstances, the investigation may be extended by up to three additional months. If USTR determines that unreasonable or discriminatory acts, policies, or practices exist that burden or restrict U.S. commerce, it will decide on responsive measures, including tariff and non-tariff actions.

In response to this development, Vietnam has issued an official reaction in a cooperative and constructive spirit. On May 30, 2026, Foreign Ministry Spokesperson Pham Thu Hang affirmed that strengthening the protection and enforcement of intellectual property rights is Vietnam's consistent policy, while emphasizing that USTR's initiation of the investigation is a procedure under U.S. law. Related issues will continue to be reviewed on the basis of exchanges and consultations between the two sides during the investigation. Vietnam is ready to continue consultations, share information, and clarify the policies, regulations, and measures that it is implementing and will implement, while requesting that the United States make an objective and fair assessment and fully recognize Vietnam's substantive efforts and results, in line with the spirit of the Vietnam-U.S. Comprehensive Strategic Partnership.

In practice, Vietnam's substantive efforts were continuously implemented throughout May 2026. The Prime Minister issued Official Dispatch No. 38/CD-TTg dated May 5, 2026 (urgent), directing the decisive implementation of measures to handle intellectual property infringement nationwide, with a peak enforcement campaign from May 7 to May 30, 2026 and a target of increasing the number of handled cases by at least 20%. On May 15, 2026, the Police Investigation Agency for Corruption, Economic and Smuggling Crimes (C03) initiated criminal proceedings in five cases under Article 225 of the Penal Code - a step aimed at addressing the weakness in criminal sanctions noted by USTR. In addition, the two sides held high-level meetings in Hanoi on May 19-20, 2026, when Minister of Public Security Luong Tam Quang and Prime Minister Le Minh Hung each received a USTR delegation led by Deputy U.S. Trade Representative Rick Switzer, with intellectual property as a key focus of discussion.

For the business community, the WTO and Integration Center - Legal Department of VCCI recommends that businesses proactively respond to trade risks arising from the Special 301 Report while maintaining a cooperative, dialogue-based, and transparent approach. This is the time to conduct a comprehensive review of compliance with intellectual property law in production, business operations, and exports, especially for enterprises whose markets, partners, or supply chains are closely linked to the United States. Key review areas include the legality of software in use; the use of images, trademarks, packaging, designs, and promotional content; and the origin and lawful rights to use data, designs, technical documents, and digital works. For digital platform, e-commerce, and intermediary infrastructure businesses, seller-screening procedures and mechanisms for handling infringement reports should be strengthened. For exporters to the United States, businesses should accelerate the digitalization of records and improve traceability across the entire supply chain.

In the upcoming investigation period, the proactive role of businesses and industry associations will be particularly important, especially through the channel for submitting comments to USTR before July 2, 2026. Clarifying positive developments in business compliance practices, together with legal reforms and enforcement efforts by Vietnamese state agencies, will help the U.S. assessment process more fully reflect the actual situation. More broadly, this development once again highlights the need to treat intellectual property as a component of modern governance and long-term competitiveness. VCCI will continue to closely monitor developments, coordinate with authorities, associations, and the business community, update information, consolidate recommendations, and support businesses during the response process.

Source: The Center for International Trade, Legal Department - VCCI

• Notice of USTR (in Vietnamese)
• Notice of USTR (in English)