{"id":1577,"date":"2026-05-29T06:10:38","date_gmt":"2026-05-29T06:10:38","guid":{"rendered":"https:\/\/lawpage.vn\/?p=1577"},"modified":"2026-07-25T06:22:04","modified_gmt":"2026-07-25T06:22:04","slug":"ustr-announces-section-301-investigation-of-vietnams-acts-policies-and-practices-related-to-intellectual-property-protection-and-enforcement","status":"publish","type":"post","link":"https:\/\/lawpage.vn\/en\/ustr-announces-section-301-investigation-of-vietnams-acts-policies-and-practices-related-to-intellectual-property-protection-and-enforcement\/","title":{"rendered":"USTR Announces Section 301 Investigation of Vietnam\u2019s Acts, Policies, and Practices Related to Intellectual Property Protection and Enforcement"},"content":{"rendered":"
I) Short background:<\/strong><\/div>\n
<\/div>\n
The U.S. Trade Representative (USTR) conducts an annual Special 301 Report to evaluate how well other countries protect and enforce intellectual property (IP). In the 2026 report, Vietnam was designated a Priority Foreign Country, the most serious classification, due to long\u2011standing problems such as weak enforcement against piracy, counterfeiting, and slow legal reforms.<\/div>\n
<\/div>\n
Because of that designation, USTR Ambassador Jamieson Greer launched a Section 301 investigation on May 29, 2026. Section 301 is a U.S. trade law that allows the government to investigate and potentially take action\u2014such as tariffs or other measures\u2014against countries whose policies are considered unfair and harmful to U.S. commerce.<\/div>\n
\n

The investigation will examine Vietnam\u2019s IP laws, enforcement practices, and their impact on U.S. companies. After the review, Ambassador Greer will consult President Trump on whether any trade actions are necessary.<\/p>\n<\/div>\n

II) Summary of the 2026 Special 301 Report & its effect on Vietnam<\/strong><\/div>\n
1. What the 2026 Special 301 Report Is?<\/strong><\/div>\n
<\/div>\n
The Special 301 Report is the U.S. government\u2019s annual assessment of how foreign countries protect and enforce intellectual property (IP). It identifies countries with serious shortcomings and can trigger trade actions under U.S. law.<\/div>\n
The 2026 report highlights global issues such as:<\/div>\n
\u2022 Online piracy<\/div>\n
\u2022 Counterfeiting<\/div>\n
\u2022 Weak trade secret protection<\/div>\n
\u2022 Forced technology transfer<\/div>\n
\n

\u2022 Barriers to market access for IP reliant industries.<\/p>\n

2. Vietnam’s Designation as a Priority Foreign Country (PFC)\u00a0<\/strong><\/p>\n<\/div>\n

Vietnam is designated a Priority Foreign Country \u2014 the most severe classification \u2014 for the first time in 13 years. This status is reserved for countries with the \u201cmost onerous or egregious\u201d IP violations that cause major harm to U.S. industries and where the government is not negotiating in good faith.<\/div>\n
<\/div>\n
Why Vietnam Was Designated?<\/div>\n
<\/div>\n
The report identifies five specific grounds:<\/div>\n
    \n
  • Failure to combat online piracy: Vietnam hosts major global piracy sites, including cyberlockers with large libraries of pirated movies and TV shows. Criminal penalties exist in law, but courts issue suspended sentences and low fines.<\/li>\n
  • Insufficient enforcement against widespread counterfeiting: Counterfeit goods are openly sold in markets and online, including dangerous products like fake milk and supplements. Enforcement dropped sharply in 2025 (violations down 50%).<\/li>\n
  • Weak border enforcement: Vietnam has ex officio authority to seize counterfeit goods at the border but rarely uses it. No authority exists for in transit goods.<\/li>\n
  • Lack of enforcement against unlicensed software: Corporate software piracy remains widespread, with little enforcement for three years.<\/li>\n
  • No criminal penalties for cable\/satellite signal theft: Vietnam amended its IP law in 2022 but did not update the criminal code to penalize unauthorized decoding of encrypted signals.<\/li>\n<\/ul>\n
    3. Immediate Effect: Section 301 Investigation<\/strong><\/div>\n
    On May 29, 2026, the U.S. Trade Representative initiated a Section 301 investigation \u2014 the same legal tool used in major trade actions against China.<\/div>\n
    <\/div>\n
    The investigation will determine:<\/div>\n
    \u2022 Whether Vietnam\u2019s IP practices are unreasonable or discriminatory<\/div>\n
    \u2022 Whether they burden or restrict U.S. commerce<\/div>\n
    \u2022 What trade actions the U.S. should take (tariffs or non tariff measures)<\/div>\n
    \n

    USTR must make a determination within 6 months, with a possible 3 month extension.<\/p>\n

    4. Practical Impact on Vietnam<\/strong><\/p>\n<\/div>\n

    A. Trade Pressure & Possible Tariffs<\/div>\n
    Section 301 can lead to:<\/div>\n
    \u2022 Tariffs on Vietnamese exports<\/div>\n
    \u2022 Restrictions on market access<\/div>\n
    \u2022 Other retaliatory trade measures<\/div>\n
    This is the same mechanism used in the U.S.\u2013China trade war.<\/div>\n
    <\/div>\n
    B. Increased Diplomatic Pressure<\/div>\n
    Vietnam is required to enter consultations with the U.S.<\/div>\n
    <\/div>\n
    C. Reputational Damage<\/div>\n
    Being labeled a PFC signals to global investors that Vietnam\u2019s IP environment is weak, potentially affecting:<\/div>\n
    \u2022 Foreign investment<\/div>\n
    \u2022 Technology partnerships<\/div>\n
    \u2022 Licensing deals<\/div>\n
    <\/div>\n
    D. Required Reforms<\/div>\n
    Vietnam will face pressure to:<\/div>\n
    \u2022 Strengthen criminal enforcement<\/div>\n
    \u2022 Increase border seizures<\/div>\n
    \u2022 Address online piracy<\/div>\n
    \u2022 Update criminal law for signal theft<\/div>\n
    \n

    \u2022 Improve coordination among ministries.<\/p>\n

    5. Bottom Line<\/strong><\/p>\n<\/div>\n

    Vietnam is now the United States\u2019 highest priority IP concern worldwide. The Special 301 Report triggered a formal Section 301 investigation that could lead to tariffs, trade restrictions, or negotiated commitments. The U.S. is signaling that Vietnam\u2019s current IP enforcement regime is no longer acceptable and must change.<\/div>\n","protected":false},"excerpt":{"rendered":"

    I) Short background: The U.S. Trade Representative (USTR) conducts an annual Special 301 Report to evaluate how well other countries protect and enforce intellectual property (IP). In the 2026 report, Vietnam was designated a Priority Foreign Country, the most serious classification, due to long\u2011standing problems such as weak enforcement against piracy, counterfeiting, and slow legal […]\n","protected":false},"author":78,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1577","post","type-post","status-publish","format-standard","hentry","category-latest-news"],"_links":{"self":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts\/1577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/users\/78"}],"replies":[{"embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/comments?post=1577"}],"version-history":[{"count":0,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/posts\/1577\/revisions"}],"wp:attachment":[{"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/media?parent=1577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/categories?post=1577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lawpage.vn\/en\/wp-json\/wp\/v2\/tags?post=1577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}