The US is investigating Vietnam's Section 301 intellectual property violations and is poised to impose additional tariffs following a surge in its trade balance.
The United States has launched an investigation into Vietnam under Section 301, delving into its intellectual property protection system, fearing a repercussions on American trade. This stems from Vietnam's soaring trade surplus with the U.S., projected to reach $1.782 billion by 2025, amidst protracted and inconclusive negotiations. Vietnam is also burdened with two pending investigations into overcapacity and forced labor. Results are expected by July.
On May 30, 2569, Bloomberg News reported that the United States had launched a new trade investigation against Vietnam , focusing on issues of intellectual property protection and enforcement. This measure could lead to increased tariffs on Vietnamese goods in the future.
This investigation is being conducted by the Office of the U.S. Trade Representative (USTR) under Section 301 of the Trade Act, which focuses on examining the extent to which Vietnamese government policies and practices have negatively impacted U.S. trade.
U.S. Trade Representative Jamieson Greer stated the necessity of escalating these measures, saying, "This action aims to address long-standing U.S. concerns regarding Vietnam's enforcement of intellectual property laws. Further measures may be implemented in the future if deemed necessary. The U.S. wants to see a serious and lasting solution to prevent intellectual property infringement in the long term."
The latest move by the United States comes amid a stalemate in trade negotiations between the two countries, which have dragged on for months without reaching a conclusion due to ongoing disagreements on three key issues:
- Transshipment
- Market access
- Vietnam's trade surplus continues to expand.
Statistics from Bloomberg indicate that Vietnam's trade surplus with the United States is expanding rapidly, reaching $1.782 billion in 2568—approximately $5.47 billion higher than in 2567.
Vietnam faces a tough battle as it investigates three related cases.
This intellectual property investigation is the third Section 301 case that the United States has used against Vietnam. Prior to this, Vietnam was under investigation in two other significant cases:
- Allegations of overcapacity in the industrial sector.
- Allegations of forced labor.
Both of these cases are expected to reach a clear conclusion by July.
Furthermore, Section 301 of the Trade Act is a crucial legal tool in the United States, as it allows the president to approve trade sanctions, such as import tariffs, against trading partners deemed to be engaging in unfair trade practices.
History is repeating itself after 13 years.
This tightening by the United States is reflected in April, when the USTR classified Vietnam as a “Priority Foreign Country” in its annual intellectual property report, marking the first time in 13 years that a trading partner has been placed in such a serious category.
Regarding Vietnam's stance, Prime Minister Le Minh Hung stated after a meeting with Rick Switzer, Deputy U.S. Trade Representative, in Hanoi in early May, that Vietnam continues to crack down on intellectual property infringement.
The situation moving forward is therefore being closely watched to see how much pressure the US's stringent inspection measures will put on Vietnam's legal and trade structure, or whether it will escalate into a new trade war in the ASEAN region.
Read news related to All situations around the world can be found here.
