Industrial Policy & Trade Monitor· 2662 actions· ✨ 89 recent

The Office of the United States Trade Representative released the 2026 Special 301 Report on 30 April 2026, designating Vietnam as a Priority Foreign Country (PFC) — the most severe category under Section 182 of the Trade Act of 1974 (19 U.S.C. § 2242). This is the first PFC designation since Ukraine held the status from 2013 through 2015, a gap of approximately 11 years. The PFC designation triggers a statutory 30-day window (expiring ~30 May 2026) within which USTR must decide whether to initiate a Section 301 investigation under 19 U.S.C. § 2412(b)(2)(A), which could lead to tariffs, withdrawal of trade benefits, or other Section 301 enforcement remedies against Vietnam. Separately, the EU was added to the Watch List for the first time, citing AI training-data, geographical-indications, and customs-enforcement concerns.

On 31 March 2026 the Government of Vietnam issued Decree 96/2026/ND-CP, the principal implementing decree for the Law on Investment 2025 (Law 143/2025/QH15). It takes effect on its signing date and replaces Decree 31/2021/ND-CP, Decree 19/2025/ND-CP and Decree 239/2025/ND-CP — the first comprehensive overhaul of Vietnam's general FDI-licensing framework since 2021. The decree operationalises the new Special Investment Procedure (a registration-and-commitment fast-track in industrial parks, export-processing zones, hi-tech parks, concentrated digital- technology zones, free-trade zones, international financial centres and economic-zone functional areas) and details the list of 16 specially-incentivised sectors covering semiconductor and chip manufacturing, AI, big data, digital technology and high-tech R&D. It also rewrites foreign-investor market-access conditions, document procedures and dispute / grievance mechanisms.

On 29 January 2026, European Council President António Costa and Vietnamese Prime Minister Phạm Minh Chính signed a Joint Statement in Hanoi upgrading EU-Vietnam bilateral relations to a Comprehensive Strategic Partnership (CSP) — the highest tier in Vietnam's diplomatic hierarchy, placing the EU on the same level as Vietnam's CSPs with China, Russia, India, South Korea, Japan, Australia, France, and the United States. The CSP establishes a reinforced bilateral cooperation framework spanning critical raw materials, semiconductor supply chains, artificial intelligence, trusted 5G infrastructure, climate and energy transition, security and defence (including cyber and maritime), and full implementation of the 2019 EU-Vietnam Free Trade Agreement (EVFTA) tariff-elimination schedule plus ratification of the EU-Vietnam Investment Protection Agreement (EVIPA). It is the EU's eleventh CSP globally and its second in Southeast Asia (after Singapore, 2024), and constitutes the foundational bilateral parent framework for all future EU-Vietnam cooperation under the EU Critical Raw Materials Act (CRMA) Article 13 third-country strategic-project designation pipeline, given Vietnam's approximately 22 Mt rare-earth reserves — the world's second-largest deposit after China.

On 19 January 2026 the Government of Vietnam issued Decree No. 29/2026/ND-CP, establishing the regulatory architecture for Vietnam's first domestic carbon trading exchange. The decree (6 chapters, 35 articles) governs registration, domestic coding, ownership transfer, custody, trading and settlement of greenhouse gas (GHG) emission quotas and eligible carbon credits. The Hanoi Stock Exchange (HNX) operates the trading platform and the Vietnam Securities Depository and Clearing Corporation (VSDC) handles registration, custody and settlement, with a pilot phase running through 31 December 2028 (no exchange-services fee) ahead of full commercialisation from 1 January 2029.

On 15 January 2026 the Government of Vietnam issued Decree No. 20/2026/ND-CP, providing detailed implementing regulations for National Assembly Resolution 198/2025/QH15 (17 May 2025) on special mechanisms and policies for the development of the private economic sector. The decree (6 chapters, 17 articles) introduces a synchronized incentive framework covering corporate and personal income tax exemptions, land-access support, science/technology and digital transformation support, and human-resource training. SMEs registering for the first time are exempt from corporate income tax for three consecutive years; innovative startups receive a full CIT exemption for two years followed by a 50% reduction for four years; eligible experts and scientists at innovative startups, R&D centers, and intermediary organizations receive a personal income tax exemption for two years followed by a 50% reduction for four years. The decree took effect on the date of signature, with CIT/PIT incentive provisions retroactively applicable from 17 May 2025 (the effective date of Resolution 198/2025/QH15).