The investigation that Issue #2 said might be coming ...has come!

USTR announced on May 29 that it is formally investigating Vietnam's intellectual property practices under Section 301 of the Trade Act of 1974 -- the same authority used in the 2018 China technology-transfer probe that eventually produced tariffs on hundreds of billions of dollars in Chinese goods. The five concerns driving the investigation are ones USTR has raised with Hanoi for years: persistent online piracy, counterfeit goods markets, weak border enforcement, unlicensed software use, and the absence of criminal penalties for satellite and cable signal theft.

A reader asked what the investigation means beyond movie piracy. The five categories USTR identified stretch well beyond entertainment.

Per USTR's Special 301 Report, Vietnam has the highest incidence of online piracy in the Asia-Pacific region and ranks eighth globally for piracy of mobile video games -- findings Hanoi has not publicly disputed. Hotels can intercept premium satellite content and rebroadcast it to guests without paying rights holders, because no criminal penalties exist. Counterfeit goods flow through physical markets and e-commerce platforms. Unlicensed software use is widespread across business and government. The combined exposure cuts across sectors -- software, gaming, entertainment, pharmaceuticals, consumer goods, and film.

Vietnam-based Fmovies was one of the most-visited illegal streaming sites in the world. Under pressure from right holders, operators were prosecuted -- the court handed down suspended sentences and criminal fines totaling less than $3,500. The statute books aren't the problem. Fines totaling less than $3,500 and suspended sentences aren't a deterrent.

Since May 29, Hanoi has moved quickly. MFA spokesperson Phạm Thu Hằng stated on May 30 that IP enforcement "is a consistent policy of Vietnam" and that Hanoi is "ready to continue consultations and share information," requesting the US make "an objective and fair assessment" of Vietnam's efforts. A nationwide enforcement campaign ran May 7-30, targeting at least a 20% increase in handled IP cases compared to May 2025. Circular 06/2026/TT-BTC -- in force since March 1 -- gives customs authorities new powers to proactively suspend clearance of suspected counterfeit goods, and extends oversight to e-commerce shipments. In 12 months, we'll know whether Hanoi's response was enough.

For buyers and exporters: this investigation runs independently of the framework agreement covering Vietnam's 20% tariff rate. It carries no rate cap, no statutory expiry, and no product-category limit.

The July 2 public comment period is open to any interested party, not just US industry groups documenting their losses. Vietnamese industry associations -- VASEP, VICOFA, VCCI -- can submit evidence of enforcement improvements, argue that their sector isn't responsible for the IP gaps USTR identified, or quantify the economic impact of broad tariffs on US buyers. Those submissions go into the record USTR weighs when deciding whether to propose any trade action and what form it takes. Vietnamese industries that engage now have a direct line into that record before any remedy is proposed.

Submit a comment →

Not just another AI newsletter. MavSource aggregates AI updates from newsletters, podcasts, company news, AI labs, & more — with trend analysis, commentary, & deep dives. Free 5-minute daily email.

Subscribe For Free Now