USTR Flags Vietnam for IP Enforcement Deficiencies, Raising Prospect of U.S. Tariffs

Vietnam has been placed on the highest-risk list by the Office of the United States Trade Representative (USTR), a move that could expose the country to Section 301 investigations and the imposition of punitive tariffs on its exports to the U.S.

The Vietnam Chamber of Commerce and Industry (VCCI) issued a statement on May 6, describing the USTR’s decision as a significant risk for Vietnamese businesses engaged in trade with the United States. The VCCI warned that this designation could trigger a Section 301 investigation, potentially resulting in adverse tariff measures against Vietnamese goods.

According to the 2026 Special 301 Report released by the USTR, Vietnam has been placed on the highest warning list under the Special 301 mechanism, which monitors the adequacy and effectiveness of intellectual property rights protection among U.S. trading partners.

The report highlighted several areas of concern regarding Vietnam’s enforcement of intellectual property rights. It cited ineffective measures against digital copyright piracy and insufficient action to combat counterfeit and trademark-infringing goods. The USTR also noted that border enforcement mechanisms in Vietnam remain limited, and there has been a lack of significant enforcement activity addressing the use of unlicensed software within enterprises.

Additionally, the report pointed out that Vietnam does not have comprehensive criminal regulations to address the unauthorized reception of encrypted cable and satellite program-carrying signals, further contributing to the country’s high-risk status.

In response to these findings, the VCCI has recommended that Vietnamese enterprises exporting to the United States conduct immediate audits of their internal intellectual property compliance. This includes verifying the legality of software, images, trademarks, and designs used in their operations, as well as ensuring transparency and digitalization throughout their export supply chains.

The VCCI also advised companies operating digital platforms, e-commerce services, hosting services, data centers, and social networks to proactively strengthen their content control and seller verification processes. These businesses are encouraged to enhance mechanisms for receiving and handling reports of intellectual property infringement, enabling the prompt removal of goods, storefronts, or content that clearly violate IP rights.

Furthermore, the VCCI emphasized the importance of transparent communication by businesses and the provision of clear explanations regarding their practices. Should the USTR initiate an investigation, companies and industry associations are expected to be prepared to submit relevant information, comments, and practical feedback to U.S. authorities through appropriate channels.

The USTR’s heightened scrutiny of Vietnam’s intellectual property enforcement comes amid ongoing efforts by both countries to strengthen bilateral trade relations. However, the risk of Section 301 investigations and the potential for punitive tariffs underscore the importance of robust IP compliance for Vietnamese exporters seeking continued access to the U.S. market.