The BGA Vietnam Team, led by Managing Director Nguyen Viet Ha, wrote an update on the U.S. Trade Representative’s (USTR) investigation into Vietnam’s intellectual property (IP) protections and enforcement.

Context

  • USTR launched a Section 301 investigation May 29 into Vietnam’s acts, policies and practices related to IP protection and enforcement. The investigation follows USTR’s Special 301 report published April 30, 2026, that classified Vietnam as a priority foreign country (see BGA’s earlier update on this issue) — the first country to be designated as such in 13 years. The review will determine if Vietnam has been unreasonable or discriminatory regarding its IP protection and enforcement to the extent that they restrict U.S. commerce. Upon completion of this investigation, USTR will determine Washington’s response in consultation with U.S. President Donald Trump.
  • Vietnam is expected to strengthen its enforcement of IP compliance regardless of whether USTR imposes tariffs, particularly in sectors prone to counterfeiting and online piracy. This marks the third Section 301 investigation into Vietnam, following earlier investigations launched this year on forced labor and excess manufacturing capacity.
  • Companies should expect increased domestic investigations in relevant sectors as Vietnam looks to ensure that the ongoing Section 301 reviews do not result in further tariffs that could hamper its growth prospects in the coming years. Vietnam is also likely to make additional IP concessions in its ongoing negotiations with the United States, hoping this will be sufficient to convince Washington of its IP compliance efforts.

Significance

  • This investigation follows a defined legal timeline. USTR has opened a public docket for comments, with submissions due by July 2. The agency is generally required to issue its determination and any proposed response within six months, although extensions may apply. If Vietnam’s practices are found to restrict American companies, USTR may impose tariff or nontariff measures. This development presents both legal and commercial risks for Vietnamese businesses.
  • Vietnam has urged the United States to conduct a fair and objective review while fully acknowledging its progress in strengthening intellectual property protection and enforcement. A Foreign Ministry spokesperson reaffirmed May 30 that enhancing IP protection remains a policy priority. Vietnam also underscored the importance of resolving related issues through ongoing dialogue and consultations during the investigation.
  • With USTR likely to use these recent Section 301 investigations as leverage, Vietnam has pushed to conclude bilateral trade negotiations to mitigate further tariffs. When hosting Deputy USTR Rick Switzer in Hanoi May 20, Prime Minister Le Minh Hung expressed his expectation to resume and finalize negotiations for the bilateral trade agreement in the near term. He countered the various claims made by the agency and highlighted how the two economies were complementary rather than directly competitive.

Implications

  • This latest development increases the risk of retaliatory tariffs on Vietnam, which could adversely affect foreign investment and exports to the United States — two key drivers of the country’s economy. New tariffs resulting from each of the three ongoing investigations would undoubtedly weigh on Vietnam’s growth prospects in the coming years relative to its neighbors.
  • Looking ahead, Vietnam is expected to strengthen its enforcement of IP compliance, particularly in sectors prone to counterfeiting and online piracy, including apparel, cosmetics, pharmaceuticals, electronics and digital content. Companies should be prepared for increased domestic and external investigations to ensure IP compliance in these sectors.

We will continue to keep you updated on developments in Vietnam. If you have any comments or questions, please contact BGA Vietnam Managing Director Nguyen Viet Ha at vietha@bowergroupasia.com

Best regards,

BGA Vietnam Team

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Managing Director

Ha Nguyen is an accomplished leader in government affairs and public policy with nearly two decades of experience in the Indo-Pacific region. She currently serves as managing director of BowerGroupAsia Vietnam, the Vietnamese branch of the U.S.-headquartered consulting firm BowerGroupAsia. Since 2007, Ha has developed and managed the company’s operations in Vietnam, building a team of approximately 30 professionals and delivering expert advisory services to Fortune 500 clients. Her work focuses on providing strategic guidance on and analysis of political, geopolitical, policy and regulatory developments. Ha helps companies engage government stakeholders and lead policy advocacy campaigns. Prior to her current ... Read More