On March 11 and 12, 2026, the US Trade Representative (USTR) successively initiated two large-scale investigations under Section 301(b) of the 1974 Commercial Act with many countries, including Vietnam.
Accordingly, the two investigations of Section 301 this time relate to (i) the systemic overcapacity of manufacturing and processing industries and (ii) imported goods into the United States using forced labor.
Faced with this development, on April 15, 2026, the Vietnam Chamber of Commerce and Industry (VCCI) sent opinions to USTR, affirming that in Vietnam's production and business practices, there is no situation of systemic overcapacity, and there are no signs of forced labor in export production as raised concerns.
Production and manufacturing activities in Vietnam are driven by market demand
According to VCCI, from a production and investment perspective, with the Enterprise Law and the Investment Law, the foundational documents for production and business activities in Vietnam, enterprises operating in Vietnam regardless of ownership origin all operate equally within the same common legal framework, with the right to freedom of business and absolute self-determination on output, input, and output for production according to market indicators and enterprise capacity.
The expansion of production in recent years therefore reflects the objective trend of the global market, including increased consumer demand, the supply chain restructuring process and the wave of international investment shift.
Notably, VCCI said that in key export industries to the United States such as electronics, machinery and equipment, wood furniture, textiles and footwear... most Vietnamese enterprises operate under a processing model according to orders from foreign partners. Therefore, production is strictly implemented according to quantity, technical standards and agreed intellectual property requirements. This means that output is always closely linked to the actual needs of the market, thereby not creating a systemic capacity surplus.
Vietnam complies with standards related to forced labor
According to VCCI, in recent years, Vietnam has been actively completing the legal system in accordance with international standards, including commitments in new generation FTAs and international conventions on labor (Conventions No. 29 and 105 of the International Labor Organization).
Vietnam's 2019 Labor Code strictly prohibits forced labor in any form, while ensuring the rights of workers in freely choosing jobs, agreeing on working conditions, wages... In fact, these rights are being widely enforced, especially in the production sector.
Along with that, with the increasing trend of applying Environmental - Social - Governance (ESG) standards, businesses are increasingly proactively investing more resources in policies and practices to improve welfare and develop workers.
In particular, with a large proportion of Vietnamese customers being multinational corporations (MNEs), supply chain appraisal frameworks are established with strict standards and strict control procedures, especially in the labor sector. These mechanisms help prevent risks of violations and ensure compliance with labor standards throughout the supply chain.
Calling for objective assessment, avoiding negative impacts on the economies of the two countries
Based on the arguments put forward, VCCI proposed that USTR conduct investigations carefully, based on complete, updated, objective information and accurately reflecting the actual production activities of Vietnam.
An objective and evidence-based conclusion will contribute to maintaining the stability of the supply chain, bringing practical benefits to US businesses and consumers, while ensuring jobs for millions of workers in Vietnam's export manufacturing industries.
