US extends Vietnam IP investigation as tariff threat looms over manufacturers

The United States has extended its investigation into Vietnam’s intellectual property protection and enforcement by three months, keeping the possibility of additional tariffs on Vietnamese exports alive and raising concerns for international manufacturers and global supply chains.

The Office of the United States Trade Representative (USTR) has extended its Section 301 investigation into Vietnam’s intellectual property (IP) protection and enforcement until February 28, 2027, citing the complexity of the issues under examination.

The extension, announced on November 10 and effective November 3, gives the USTR additional time to determine whether Vietnam’s acts, policies, and practices are actionable under US trade law and what response, if any, should follow. The original deadline was November 29, 2026.

The investigation was initiated on May 29, 2026, following the United States’ designation of Vietnam as a Priority Foreign Country in its 2026 Special 301 Report, published on April 30. This is the most serious category in the USTR’s IP watchlist system and the first time in 13 years that a country has received the designation.

The investigation examines allegations that Vietnam has persistently failed to resolve longstanding concerns over IP protection and enforcement, and whether these practices are unreasonable or discriminatory and burden or restrict US commerce.

Tariff implications for international businesses

The extension keeps the prospect of additional tariffs on Vietnamese exports to the United States in play. Under Section 301 of the Trade Act of 1974, the USTR can recommend trade measures, including tariffs and non-tariff measures, in response to foreign government practices found to be actionable under the legislation.

No additional tariffs have been imposed as a result of this investigation, and the USTR has not announced a proposed rate. However, its eventual findings could have significant consequences for businesses that manufacture or assemble products in Vietnam for the US market.

Vietnam has become an important manufacturing and assembly hub for international supply chains. Reuters reported that multinational companies, including Samsung and Tesla, have opposed the prospect of further tariffs, alongside manufacturers in the footwear, apparel, and consumer goods sectors, citing potential disruption to commercial operations and supply chains.

The investigation also comes amid wider trade tensions between Washington and Hanoi. Vietnam already faces separate US trade measures, including general duties of 12.5% on its exports, following a determination concerning the use of imported goods made with forced labor. A separate investigation into alleged excess industrial capacity is also underway.

Longstanding concerns over IP enforcement

Vietnam’s Priority Foreign Country designation followed years of US concerns over the effectiveness of its IP enforcement framework. The 2026 Special 301 Report identified five specific grounds for the designation: insufficient enforcement against online piracy and widespread counterfeiting, ineffective border enforcement, a lack of enforcement action against unlicensed software use, and insufficient criminal measures against cable and satellite signal theft.

The USTR has argued that these shortcomings damage the commercial interests of US innovators, creators, and rights holders, both within Vietnam and in other markets.

The Section 301 investigation is examining the practices underlying the Priority Foreign Country designation, alongside other relevant acts and policies concerning the denial of adequate and effective IP protection and fair and equitable market access for businesses that rely on intellectual property rights. Under the extended timetable, the USTR must make its findings on whether the practices are actionable and what measures, if any, should be taken by February 28, 2027.

IP protection increasingly linked to trade policy

The extension highlights the growing significance of intellectual property protection in international trade relations, with enforcement standards increasingly becoming a consideration in broader economic and geopolitical negotiations.

For international businesses, the outcome could extend well beyond Vietnam’s domestic legal environment. Additional duties could affect manufacturing costs, sourcing decisions, supply-chain strategies, and the commercial competitiveness of companies relying on Vietnamese production. The investigation also places renewed attention on the relationship between national IP enforcement standards and access to major export markets, particularly for jurisdictions that have become integral to global manufacturing networks.

With the revised deadline set for February 28, 2027, manufacturers, technology companies, and brand owners will be watching closely to see whether the investigation results in further trade measures or renewed pressure on Vietnam to strengthen its IP protection and enforcement framework.

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