Vietnam Designated as Priority Foreign Country in Latest U.S. Intellectual Property Rights Review

The United States Trade Representative (USTR) has named Vietnam as a top concern in its newly released annual report on intellectual property rights, signaling heightened scrutiny of one of its key trading partners. The report, published on Thursday, follows a comprehensive review of intellectual property (IP) protection and enforcement practices across more than 100 U.S. trading partners worldwide.

Vietnam was designated as a "priority foreign country" in the report, marking the first time in 13 years that any nation has been placed in this highest concern category. According to the USTR, this designation is reserved for countries whose IP-related acts, policies, and practices are considered the most egregious and have the greatest impact on relevant U.S. products.

The USTR criticized Vietnam for failing to address longstanding issues related to IP protection and enforcement. The report also cited other nations, including China, for inadequate measures to safeguard U.S. trade secrets.

The annual review is a key tool for the U.S. government to monitor and respond to global IP practices. The USTR will determine within 30 days whether to initiate an investigation under Section 301 of the Trade Act of 1974, a process that could lead to trade actions against Vietnam.

In response to the report, Pham Thu Hang, spokesperson for Vietnam’s Ministry of Foreign Affairs, stated that Vietnam deals "strictly" with intellectual property violations. Hang emphasized that Vietnam has improved its regulatory framework, increased public awareness, and strengthened international cooperation with organizations such as the World Intellectual Property Organization and with the U.S. and other countries.

Hang called on the U.S. to make "an objective and balanced assessment of Vietnam’s efforts and achievements in the field of intellectual property protection."

Alongside Vietnam, the report placed China, Chile, India, Indonesia, Russia, and Venezuela on the "priority" list. An additional 19 trading partners were included on the "watch list," which this year featured the European Union (EU) for the first time.

The USTR cited the EU’s recent provisional agreement on pharmaceutical legislation and ongoing digital copyright issues as reasons for its inclusion on the watch list.

U.S. Trade Representative Jamieson Greer commented, "Using all the enforcement tools we have to address unfair trade practices is a top priority. We have rigorously reviewed our trading partners’ IP practices and expect to take action where needed to protect American innovators and creators globally."

The report also noted positive developments in other jurisdictions. Argentina and Mexico were moved from the priority list to the watch list after making efforts to address IP concerns. Bulgaria was removed from the watch list entirely due to enforcement actions and criminal prosecutions.

The USTR’s annual review continues to serve as a barometer for global IP enforcement, with this year’s findings likely to influence future trade policy and enforcement actions.