Vietnam Intensifies IP Enforcement Following USTR's Priority Foreign Country Designation

On April 30, the Office of the United States Trade Representative (USTR) released its 2026 Special 301 Report, identifying Vietnam as a 'Priority Foreign Country' (PFC) for intellectual property (IP) concerns—the highest level of concern under the USTR’s review mechanism.

Following the report, the World Trade Organization (WTO) and Integration Centre under the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) issued a notice on May 6, emphasizing the need for close monitoring of the situation. The Centre warned that if the US initiates an investigation under Section 301, the process could be lengthy and may result in unfavorable trade measures, including the imposition of tariffs.

The USTR report highlighted five primary areas of concern that led to Vietnam’s PFC designation: ineffective enforcement against online copyright infringement, insufficient control of counterfeit goods and trademark violations, limitations in border enforcement mechanisms, inadequate enforcement against the use of unlicensed software in businesses, and the lack of comprehensive criminal provisions addressing unauthorized use of cable and satellite broadcast signals.

Despite these concerns, the USTR acknowledged positive steps taken by Vietnam, including increased criminal prosecutions against operators of infringing platforms and the shutdown of several major piracy websites between 2024 and 2026.

The WTO and Integration Centre underscored the importance of addressing these issues objectively and constructively. In recent years, Vietnam has made significant efforts to enhance its IP framework, such as amending the IP Law, improving inter-agency coordination, and increasing inspections in both digital and physical goods circulation. Vietnam has also urged the US to adopt a more balanced perspective regarding its legal reforms and enforcement initiatives.

The VCCI-affiliated body advised companies to urgently review their IP compliance across production, business, and export operations. Key recommendations include verifying the legality of software in use, ensuring proper rights for images, trademarks, packaging, designs, and promotional content, and strengthening documentation to prove lawful use of IP assets.

For digital platform operators, e-commerce businesses, data storage providers, and social media networks, the Centre recommended reinforcing content control processes, improving reporting mechanisms, and accelerating responses to suspected copyright infringement or counterfeit goods.

The Centre also highlighted the need to improve transparency and digitalization across supply chains, particularly for exporters to the US. This approach is seen as both a risk management measure in the face of potential trade tensions and a means to enhance competitiveness by meeting stricter global requirements on traceability, compliance, and transparency.

Looking ahead, the developments surrounding the 2026 Special 301 Report reflect growing expectations for Vietnamese businesses to treat intellectual property as a core element of modern governance. The Centre emphasized that greater investment in compliance, risk control, process standardization, and market diversification will help firms better navigate global trade uncertainties.

Should the US proceed with a Section 301 investigation, the VCCI recommends that businesses and industry associations actively engage by providing information, reflecting practical realities, and highlighting improvements in compliance and legal reform within Vietnam.

VCCI stated it will continue to monitor developments closely, coordinate with relevant agencies and associations, and support the business community, aiming to reinforce Vietnam’s image as a responsible and reliable trade partner.

On May 5, Deputy Prime Minister Ho Quoc Dung signed Official Dispatch No.38/CD-TTg, calling for intensified measures to combat intellectual property infringement. The directive requires ministries, sectors, and local authorities to implement coordinated and decisive actions to prevent and address IP violations from May 7 to 30, 2026, under the principle of 'no exceptions, no restricted areas.'

The Vietnam Chamber of Commerce and Industry also clarified that Vietnam does not have systemic overcapacity or forced labour in its export sectors. Additionally, the VCCI expressed agreement with the Ministry of Finance's proposal to extend the special consumption tax on battery-powered motor vehicles with fewer than 24 seats.