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US Extends Vietnam Trade Investigation, Raising Uncertainty for Exporters

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The United States has extended its investigation into Vietnam’s intellectual property protection practices until February 28, 2027, prolonging uncertainty over the country’s trade relationship with Washington and the future of businesses relying on its manufacturing industry.

The investigation, launched in May under Section 301 of the US Trade Act of 1974, examines allegations that Vietnam has failed to adequately address longstanding concerns about intellectual property protection and enforcement.

The US Trade Representative said additional time was necessary because of the complexity of the issues involved.

The investigation could result in further trade measures, including additional tariffs, although no new duties have been announced under this particular probe.

The development carries implications for international manufacturers operating in Vietnam, which has become an important production and assembly base for companies supplying the American market.

Major businesses, including Samsung and Tesla, have raised concerns about the potential consequences of additional tariffs, particularly for manufacturing operations and supply chains that depend on Vietnamese production.

Vietnam already faces a separate 12.5 per cent general tariff on exports to the United States, while another US investigation is examining allegations of excessive industrial capacity.

The extension comes as both countries continue negotiations towards a trade agreement, with businesses watching closely for developments that could influence export costs, investment decisions and access to the American market.

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