NextFin News - Vietnam has launched a high-profile enforcement campaign against intellectual property theft, reporting a sharp rise in seizures and site shutdowns just days after the U.S. government initiated a formal trade investigation that could lead to new tariffs. The Office of the U.S. Trade Representative (USTR) announced on May 29 that it has opened a Section 301 probe into Vietnam’s acts, policies, and practices regarding intellectual property (IP) protection. This marks the third such investigation currently facing the Southeast Asian nation, as U.S. President Trump continues to leverage trade tools to address a ballooning trade deficit that reached $178.2 billion in 2025.
The Vietnamese government responded by ordering a month-long crackdown targeting piracy websites, counterfeit goods, and trademark infringements. According to reports from the Straits Times, Hanoi has set a target to increase enforcement cases by 20% compared to the previous year. Prime Minister Le Minh Hung, following a meeting with Deputy U.S. Trade Representative Rick Switzer, emphasized that the country is committed to combating violations. However, the timing of these actions suggests a defensive posture aimed at heading off punitive measures from Washington, which recently designated Vietnam as a "priority foreign country" for IP concerns—the first such designation for any nation in 13 years.
U.S. Trade Representative Jamieson Greer stated that the probe will assess the impact of Vietnam’s IP policies on U.S. commerce, noting that the administration needs to see "sustained" resolution rather than temporary surges in enforcement. The investigation adds to existing Section 301 probes into Vietnam’s alleged excess manufacturing capacity and labor practices, both of which are expected to conclude in July. For Vietnam, the stakes are exceptionally high; the country was hit with a 46% tariff in April 2025, which was later negotiated down to 20%, yet a final trade deal remains elusive as talks stall over trans-shipment and market access issues.
The friction underscores a fundamental shift in the U.S.-Vietnam trade relationship. While Vietnam has been a primary beneficiary of supply-chain shifts away from other Asian hubs, its success has brought it into the crosshairs of the Trump administration’s "America First" trade policy. In March 2026, Vietnam posted the second-largest trade deficit with the U.S., trailing only Taiwan and surpassing traditional manufacturing giants. This trade imbalance has turned what was once a strategic partnership into a focal point for U.S. trade enforcement, with IP protection serving as a primary lever for the USTR.
Skeptics of the current crackdown point to historical patterns where temporary enforcement spikes coincide with high-level diplomatic visits or trade deadlines, only for counterfeit markets to resume normal operations shortly after. In Ho Chi Minh City’s Saigon Square, a notorious hub for counterfeit goods, vendors continue to operate despite the official rhetoric. The U.S. administration has signaled that it is looking for structural legal reforms and a permanent shift in the enforcement landscape, rather than a "month-long" campaign. Without such changes, the threat of returning to the 46% tariff level or facing new sector-specific duties remains a significant risk for Vietnamese exporters.
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