(May 30): The US has launched a third trade investigation into Vietnam’s handling of intellectual-property rights, as the Trump administration turns up the pressure on the export-reliant nation.
The Office of the US Trade Representative announced Friday the probe will look into Vietnam’s acts and policies surrounding IP protection and enforcement and “assess their impact on US commerce”. US Trade Representative Jamieson Greer plans to consult with President Donald Trump if “responsive action” is needed, a process that could take months.
The investigation, which is being carried out under Section 301 of the Trade Act, opens the door to new tariffs on Vietnamese goods.
“We need to see Vietnam resolve these long-standing concerns, including on a range of IP enforcement issues, in a manner that is sustained and that deters future IP infringements,” Greer said in a statement.
Vietnam was identified as a “priority foreign country” in a late April report, marking the first time in 13 years that a nation has been placed in that category. The designation is reserved for countries with the most egregious IP-related acts.
The US has launched a raft of trade inquiries as Trump looks to rebuild his tariff wall that was toppled when the Supreme Court earlier this year overturned his previous global tariffs.
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The Southeast Asian nation is already the subject of two separate Section 301 probes into alleged excess manufacturing capacity and forced labour. The investigations, which could provide the legal basis for the US president to unilaterally impose tariffs on imports from countries deemed to engage in unfair trade practices, are expected to conclude in July.
Vietnam’s Prime Minister Le Minh Hung said the country is committed to combating intellectual-property violations after meeting the Deputy US Trade Representative Rick Switzer in Hanoi earlier this month. The government ordered a monthlong crackdown on piracy websites, counterfeit goods and trademark infringements shortly after the USTR report was released, targeting a 20% increase in enforcement cases from the previous May.
Vietnam was initially hit with a steep 46% tariff last April, later reduced to 20%, but despite months of negotiations the two sides have yet to reach a final trade deal, leaving uncertainty hanging over one of America’s largest trading partners.
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The talks have stalled over issues including transshipment, market access and Vietnam’s large trade surplus with the US, which has only continued to grow as manufacturers shift production to the country amid broader supply-chain realignments.
The trade gap widened sharply to US$178.2 billion (RM707.54 billion) in 2025, an increase of around US$54.7 billion from 2024. In March, Vietnam posted the second-largest trade deficit with the US after Taiwan, ahead of China and Mexico.
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