USTR Launches May 29 Investigation into Vietnam’s Intellectual Property Practices
Key Facts
The Office of the United States Trade Representative (USTR) launched a Section 301 investigation on May 29, 2026, into Vietnam’s practices related to intellectual property protection and enforcement, according to a Federal Register notice. The action came a month after Vietnam was placed in the “Priority Foreign Country” category in USTR’s annual report on intellectual property protection, issued on April 30. The investigation moves the matter from designation to a formal examination of whether Vietnam’s practices are actionable under U.S. trade law. Launching the investigation does not in itself mean tariffs will be imposed on Vietnamese imports. The previously reported deadline for deciding whether to open an investigation is no longer relevant, as the action began in May.
USTR said its 2026 Special 301 Report followed a review of more than 100 trading partners and designated only one country as a Priority Foreign Country, while placing 25 countries on the Priority Watch List or Watch List. Vietnam was the country given the report’s highest designation, which reviews trading partners’ protection and enforcement of intellectual property rights. The designation was the direct basis for the subsequent Section 301 investigation. According to the notice, the investigation will examine whether Vietnam’s acts, policies and practices are actionable under Section 301(b) of the Trade Act. USTR also requested consultations with the Vietnamese government as part of the investigation.
USTR based Vietnam’s designation on what it described as continued deficiencies in online anti-piracy enforcement, which it said were the primary reason for placing the country in the priority category. The notice also cited the prevalence of counterfeit goods, weak border enforcement, use of unlicensed software, and cable and satellite signal theft. At the same time, the report said the number of violations involving infringing, counterfeit or low-quality goods detected by Vietnamese authorities fell 50% in 2025 compared with 2024. That recorded decline sits alongside USTR’s concerns about continuing enforcement problems. U.S. Trade Representative Jamieson Greer said, “Intellectual property infringement in Vietnam continues to harm the competitive position of American innovators and creators.”
USTR says the United States engaged with Vietnam on an intellectual property action plan before launching the investigation. Washington submitted an initial proposal for the plan in 2020, then sent a revised proposal in 2023, according to the Federal Register notice. The notice added that USTR had seen no tangible progress in subsequent bilateral engagement on the proposal. This sequence outlines the background to the discussions preceding the investigation, while the formal examination remains focused on intellectual property protection and enforcement. Greer said Vietnam had taken steps to address some concerns, but called for sustained action to deter future violations.
The investigation notice set a deadline of July 2, 2026, at 11:59 p.m. Eastern Time for interested parties to submit written comments they wish to have considered. It also states that USTR will issue its determinations on the investigation and action no later than six months after the investigation began, with a possible three-month extension in certain circumstances. In July, Vietnam urged Washington to end the investigation with a decision recognizing its efforts, and affirmed that trade negotiations with the United States were continuing. Vietnamese government data showed the U.S. trade deficit with Vietnam reached $75.3 billion in the first half of 2026, up 21% year over year. These figures place the investigation in the context of trade relations between the two countries, while any decision on potential action remains within USTR’s legal process.