The United States Trade Representative ( USTR ) has designated Vietnam as a Priority Foreign Country in its 2026 Special 301 Report, a move that marks the first time in thirteen years any nation has received this specific label.

This designation is reserved for countries deemed to have the most egregious intellectual property ( IP ) policies and practices that negatively impact US commerce.

Washington’s decision stems from five primary concerns:

• failure to curb global piracy sites hosted within Vietnam
• widespread counterfeiting in both physical and digital markets
• lack of effective border controls
• corporate use of unlicensed software
• systemic cable and satellite signal theft.

As a result of this identification, the USTR now has a 30-day window to determine whether to initiate a formal investigation under Section 301 of the Trade Act of 1974, which could eventually lead to trade enforcement actions or requested consultations if the two nations cannot resolve these differences.

Vietnam pledges cooperation, defends record

In immediate response to the US report, Vietnam’s Ministry of Foreign Affairs on May 1 called for a more objective assessment of the nation’s progress in protecting IP.

Vietnam considers the fight against IP violations a high priority, emphasizes Pham Thu Hang, the ministry’s spokesperson, and argues that the country has a consistent policy aimed at ensuring a transparent business environment for international investors.

“In recent years, Vietnam has made significant efforts to protect intellectual property,” she states, “including improving its legal framework, raising public awareness and enhancing international cooperation with the World Intellectual Property Organization, the United States and many other countries.”

The Vietnamese government also highlights its ongoing efforts to refine legal frameworks and increase public awareness, noting that it remains committed to maintaining a dialogue with the US to clarify its policies.

Broader shifts in global trade relations

While the US report also adjusted the status of other trading partners – moving Argentina, Mexico and the European Union ( due to pharmaceutical concerns ) to its watch list and removing Bulgaria from it – the elevation of Vietnam represents a significant shift in bilateral trade relations.

“American innovators, creators and brand owners rely on robust IP protection and enforcement,” says USTR ambassador Rick Switzer. “The USTR will continue to press our trading partners to resolve trade barriers with respect to IP in their markets through our negotiations for agreements on reciprocal trade and other engagements.”