USTR Launches Section 301 Probe into Vietnam’s Intellectual Property Enforcement Amid Ongoing Concerns

The Office of the United States Trade Representative (USTR) launched a formal investigation on May 29, 2026, under Section 301 of the Trade Act of 1974 to examine Vietnam’s acts, policies, and practices concerning intellectual property (IP) protection and enforcement. This investigation marks a significant escalation in U.S. scrutiny of Vietnam’s IP regime, signaling potential trade consequences if deficiencies are not adequately addressed.

Section 301 authorizes the USTR to investigate foreign trade practices deemed “unfair,” “unreasonable,” or “discriminatory” when they burden or restrict U.S. commerce. The current probe focuses on longstanding concerns that Vietnam’s enforcement mechanisms remain weak and fail to provide sufficient deterrence against IP violations.

U.S. Trade Representative Jamieson Greer emphasized the need for Vietnam to resolve these issues in a sustained manner that effectively deters future infringements. He noted that the investigative process could take several months and that he would consult with President Donald Trump should responsive action, including possible trade sanctions, become necessary.

While the investigation itself does not immediately impose tariffs or penalties, it represents a clear warning. The USTR’s decision on retaliatory measures will depend on the investigation’s findings, bilateral consultations, stakeholder input, and broader political considerations within U.S.–Vietnam relations.

The USTR’s concerns center on five primary categories: online copyright infringement, counterfeit and pirated goods, border enforcement, the use of unlicensed software, and the absence of criminal penalties for cable and satellite signal piracy. These issues have persisted despite Vietnam’s legal reforms and enforcement efforts.

Vietnam has enacted amendments to its 2022 Law on Intellectual Property, which took effect in 2023, aiming to strengthen IP protections. Additionally, Prime Minister Lê Minh Hưng has directed ministries and agencies to intensify enforcement against online copyright infringement and counterfeit goods, targeting violations involving software, films, music, television programs, online games, and counterfeit products.

On May 26, the Customs Department issued Official Dispatch No. 16727/CHQ-GSQL, mandating inspections and suspension of customs clearance for goods suspected of counterfeiting or IP infringement. These steps demonstrate Vietnam’s commitment to addressing some of the USTR’s concerns.

However, the USTR maintains that these efforts are insufficiently sustainable and lack the deterrent effect necessary to protect U.S. businesses, creators, and rights holders. The continued reliance on administrative penalties, rather than robust civil and criminal sanctions, undermines enforcement effectiveness.

This investigation reflects a shift from annual IP complaints to a formal investigative process that could culminate in tariffs or other trade restrictions if Vietnam fails to implement substantive reforms. The USTR’s action underscores the importance of effective IP enforcement in bilateral trade relations and signals heightened U.S. vigilance in protecting intellectual property rights abroad.