This potentially opens the door to additional tariffs on Vietnamese imports, Bloomberg reports.

The Office of the US Trade Representative (OTR) announced that the Section 301 investigation will examine Vietnam's policies and practices regarding IP protection and enforcement, and assess their impact on US trade.

US Trade Representative Jamison Greer stated that the investigation aims to address long-standing concerns regarding IP compliance in Vietnam and warned of further action if necessary.

"We need Vietnam to address these long-standing concerns, including on a wide range of IP compliance issues, in a sustainable manner that deters future violations," Greer said in a statement.

The new investigation complements two existing Section 301 investigations against Vietnam, concerning alleged excess capacity and forced labor. These investigations are expected to conclude in July. A Section 301 investigation could serve as the legal basis for the US president to impose tariffs on imports from countries deemed to be violating fair trade principles.

According to Bloomberg, Vietnam was added to the "priority foreign country" category in the USTR's annual intellectual property report in April—the first time in 13 years that the country has received this designation.

Vietnam has recently stepped up its efforts to protect intellectual property. Prime Minister Le Minh Hung stated earlier this month that the country remains committed to combating violations in this area, following his meeting with Deputy US Trade Representative Rick Switzer in Hanoi.

The new investigation comes amid unresolved trade negotiations between Washington and Hanoi.

Despite months of negotiations, the two sides have not yet reached a final agreement due to disagreements over transit traffic, market access, and Vietnam's growing trade surplus with the US. Bloomberg reports that Vietnam's trade surplus with the United States has risen to $178.2 billion in 2025, up about $54.7 billion from the previous year.