In the recently released Special 301 Report on Intellectual Property Protection and Enforcement 2026, the US Trade Representative (USTR) has placed India among six countries, including China and Russia, on its Priority Watch List. This designation indicates significant concerns regarding the adequacy and effectiveness of IP rights protection in these nations. Vietnam, however, faces the gravest scrutiny as it has been identified as a Priority Foreign Country (PFC) for the first time in 13 years due to its failure to engage in good faith negotiations regarding IP rights. The USTR noted that Vietnam's lack of progress in addressing IP issues has adversely affected US industries reliant on intellectual property. The report evaluates over 100 trading partners and highlights the importance of protecting American innovators and creators globally. The USTR plans to decide within 30 days whether to initiate an investigation against Vietnam under Section 301 of the Trade Act of 1974, based on the findings of this report.