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On April 30, the Office of the US Trade Representative released its 2026 Special 301 Report on the protection and enforcement of intellectual property rights among trading partners. In this report, Vietnam was designated as a “Priority Foreign Country”, the highest level of concern under the mechanism.
In a notice issued on May 6, the World Trade Organization (WTO) and Integration Centre under the Legal Department of the Vietnam Chamber of Commerce and Industry (VCCI) said this development warranted close monitoring. Should the US initiate an investigation under Section 301, the process could be prolonged and may lead to unfavourable trade measures, including tariffs.
According to the report, the USTR identified five main areas of concern underpinning Vietnam’s PFC designation: ineffective enforcement against online copyright infringement; insufficient control of counterfeit goods and trademark violations; limitations in border enforcement mechanisms; lack of enforcement action against the use of unlicensed software in businesses; and the absence of comprehensive criminal provisions addressing the unauthorised use of cable and satellite broadcast signals.
At the same time, the report acknowledged some positive developments. The USTR noted that Vietnam had stepped up criminal prosecutions against operators of infringing platforms and recorded the shutdown of several major piracy websites between 2024 and 2026.
The WTO and Integration Centre has explained the importance of addressing the issue in an objective and constructive manner. In recent years, Vietnam has made notable efforts to improve its intellectual property framework, including amendments to the IP Law, enhanced inter-agency coordination, and increased inspections in both digital environments and goods circulation. Vietnam has also called on the US to take a more balanced view of its legal reforms and enforcement efforts.
The VCCI-affiliated body stressed that companies should urgently review their intellectual property (IP) compliance across production, business, and export activities. Priority should be given to 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 intellectual property assets.
For digital platform operators, e-commerce businesses, data storage providers, and social media networks, the focus should be on reinforcing content control processes, improving reporting mechanisms, and accelerating responses to suspected copyright infringement or counterfeit goods.
The centre also stressed the need to improve transparency and digitalisation across supply chains, particularly for exporters to the US. This is not only a risk management measure amid potential trade tensions, but also a key factor in boosting competitiveness and meeting increasingly strict requirements on traceability, compliance, and transparency in global markets.
In the longer term, developments surrounding the 2026 Special 301 Report highlight growing expectations for Vietnamese businesses to treat intellectual property as a core element of modern governance rather than a standalone legal matter. Greater investment in compliance, risk control, process standardisation, and market diversification will help firms better navigate global trade uncertainties.
If the US moves forward with a Section 301 investigation, VCCI recommends that businesses and industry associations engage by providing information, reflecting practical realities, and highlighting improvements in compliance and legal reform in Vietnam.
VCCI said it will continue to closely monitor developments, coordinate with relevant agencies and associations, and support the business community, thereby reinforcing Vietnam’s image as a responsible and increasingly reliable trade partner.
Deputy Prime Minister Ho Quoc Dung signed Official Dispatch No.38/CD-TTg on May 5, calling for intensified measures to combat intellectual property infringement.
Accordingly, ministries, sectors, and local authorities are required to implement coordinated and decisive actions to prevent and handle IP violations from May 7 to 30, 2026, under the principle of “no exceptions, no restricted areas.”
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