On March 11 and 12, 2026, the Office of the United States Trade Representative (USTR) initiated two large-scale investigations under Section 301(b) of the Trade Act of 1974 involving several countries, including Vietnam. Specifically, these two Section 301 probes concern (i) systemic overcapacity in the manufacturing and processing sectors, and (ii) imports into the United States involving forced labor.

In light of these developments, on April 15, 2026, the Vietnam Chamber of Commerce and Industry (VCCI) submitted its official comments to the USTR. VCCI affirmed that business and production practices in Vietnam do not involve systemic overcapacity, nor is there any evidence of forced labor in the production of export goods as alleged. The full text of the comments is as follows:

"Re: Section 301 Investigations of Viet Nam Relating to Structural Excess Capacity and Forced Labor – Comments

Dear General Counsel Thornton,

On behalf of the Viet Nam Chamber of Commerce and Industry (VCCI), I would like to extend our respectful greetings to you and the Office of the United States Trade Representative (USTR).

We refer to the notices of the United States Trade Representative dated March 11 and March 12, 2026, initiating investigations under Section 301(b) of the Trade Act of 1974 concerning: (i) acts, policies, and practices related to structural excess capacity and production in manufacturing sectors; and (ii) acts, policies, and practices related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor, in which Viet Nam is included among the investigated economies. 

As the national organisation for entrepreneurs, employers and business associations operating in Viet Nam, we work for the freedom of doing business and the benefits therefrom of not only our more than 10,000 registered members but also the whole business community and millions of related labors in Viet Nam. Based on regular updates and practical feedback from our member enterprises across sectors, we respectfully submit the following comments for your consideration.

With regard to the concerns raised in these investigations, we would like to affirm that the current production and business conditions in Viet Nam do not indicate structural excess capacity in manufacturing sectors, nor patterns suggesting the existence of forced labor.

Firstly, manufacturing production in Viet Nam is driven by market demand.

From the perspective of production and investment, under Viet Nam’s Law on Enterprises 2020 and Law on Investment 2020, the two core legal foundations governing business activities, all enterprises operating in Viet Nam, regardless of ownership structure or origin, are subject to a unified legal framework which is built on the fundamental principle of respecting the freedom of business. In implementing these laws, enterprises in Viet Nam, especially those in manufacturing and processing sectors, have the full autonomy in making their decisions on production volume, input sourcing, output allocation, etc. entirely based on market signals, contractual commitments, and their own business capabilities. 

Over recent years, export-oriented manufacturing expansion in Viet Nam has largely reflected legitimate market demand, international supply chain development, and global business restructuring.  As a matter of fact, enterprises in Viet Nam across major export sectors to the United States, including electronics, machinery and equipment, furniture, textiles, and footwear, predominantly base their production on orders from U.S. buyers, many of which are multinational enterprises (MNEs). Under the supervision of such buyers, manufacturing and production activities in Viet Nam are undertaken strictly in accordance with agreed specifications, especially in terms of quantity and stringent intellectual property protection. As a result, production levels are closely aligned with actual customer orders, and could not give rise to any possibility of excess output.  

Secondly, labor laws and practice in Viet Nam are in full compliance with high international standards, including those relating to forced labor.

Over the recent years, Viet Nam has actively aligned its labor laws and practice with international labor commitments, including obligations undertaken in high-standard and new-generation free trade agreements (FTAs) and international labor conventions (including International Labour Organization Convention No. 29 on Forced Labour and Convention No. 105 on the Abolition of Forced Labour).  

The Labour Code 2019 of Viet Nam expressly prohibits forced labor in all forms, and guarantees laborers’ rights to agree on employment, working conditions and wages. In practice, laborers in Viet Nam, especially the large part working in manufacturing sectors, have been fully taking advantage of their right to choose their employment, work under agreed conditions, and terminate employment at their discretion in accordance with legal and contractual terms.  

In addition, as one of the most proactive promoters of ESG in Viet Nam, we observe an increasing trend of ESG adoption among Vietnamese enterprises, especially among exporting manufacturers. These enterprises have been increasingly investing their resources in policies and practices to support employee welfare and development.

Furthermore, as above-mentioned, a significant number of U.S. buyers of Viet Nam’s exporting manufacturers are MNEs, with well-established and rigorous supply chain due diligence frameworks, including supplier screening, compliance audits, traceability requirements, and ongoing monitoring, particularly in relation to labor standards. Such requirements provide de facto effective safeguards against non-compliant practices and reinforce high standards of labor compliance across supplier networks in Viet Nam.

From the foregoing, we respectfully urge that these investigations be conducted with full consideration of updated, objective and practical information from Viet Nam so that the findings accurately reflect above-stated facts.

A balanced and evidence-based conclusion would help avoid unintended consequences for both economies. Should additional trade restrictions or tariffs be imposed based on incomplete assessments, such measures may increase sourcing costs for U.S. importers, create price pressures for U.S. consumers, and disrupt supply stability for American companies that currently rely on manufacturing partnerships in Viet Nam. Such measures may also directly affect U.S.-invested enterprises operating in Viet Nam and downstream industries that depend on stable and competitive supply chains. 

At the same time, such outcomes could adversely affect millions of workers employed in legitimate export production activities in Viet Nam, many of whom are participating in supply chains that directly serve U.S. businesses and consumers.

We therefore respectfully request that USTR continue to engage closely with relevant Vietnamese stakeholders during the course of these investigations and take into account practical evidence from enterprises and institutions directly involved in production and trade.

We appreciate your consideration of these comments and remain available to provide any further information that may be useful in the course of these investigations.

Yours sincerely,"

Source: WTO and International Trade Team, Legal Department - VCCI

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