12/06/2026
Vietnam Tightens IP Enforcement Amid U.S 301 Report
1. Background: The Special 301 Report and Vietnam’s Elevation to “Priority Foreign Country” (PFC) Status
The Special 301 Report constitutes the annual review mechanism conducted by the Office of the United States Trade Representative (USTR) pursuant to Section 182 of the Trade Act of 1974 (19 U.S.C. § 2242), for the purpose of assessing the adequacy and effectiveness of intellectual property protection and enforcement by U.S. trading partners. The Report classifies foreign jurisdictions into three escalating tiers of risk: the Watch List, the Priority Watch List, and the Priority Foreign Country (PFC) designation. The PFC designation represents the highest tier, signifying that the United States may initiate an investigation under Section 301 of the Trade Act – a procedural predicate for the imposition of unilateral trade sanctions.
For many years, Vietnam was placed solely on the Watch List. The 2025 Report, published on 29 April 2025, maintained Vietnam in that tier, alongside Thailand and sixteen other jurisdictions. On 30 April 2026, however, the USTR took an unexpected step: it elevated Vietnam directly from the Watch List to the PFC tier, bypassing the Priority Watch List entirely, and singling out Vietnam as the sole jurisdiction at the highest level of concern. This marks the first instance in thirteen years in which any country has been so designated.
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ISSUE 1 – JUNE 2026 1. Background: The Special 301 Report and Vietnam’s Elevation to “Priority Foreign Country” (PFC) Status The Special 301 Report constitutes the annual review mechanism conducted by the Office of the United States Trade Representative (USTR) pursuant to Section 182 of the ...