Full Breakdown
Vietnam Rejects USTR Forced-Labour Findings, Vows Ongoing Dialogue
6/4/2026, 11:55:21 PM
Vietnam Rejects USTR Forced-Labour Findings
On June 4, the Ministry of Foreign Affairs of Vietnam publicly rejected the United States Trade Representative’s (USTR) conclusion that Vietnam failed to curb trade in goods produced with forced labour. Spokeswoman Pham Thu Hang said the USTR’s findings “do not accurately reflect the reality of Vietnam’s efforts to prevent and minimize forced labour.”
Background & Context
The USTR launched a Section 301 investigation on March 12, 2025, covering 60 partner economies. Its June 2 report concluded that each economy either did not impose or did not effectively enforce prohibitions on forced-labour imports. Vietnam was listed among 54 economies—alongside China, South Korea and Singapore—deemed to have failed both criteria, prompting a proposed 12.5 % tariff on Vietnamese exports. The move follows a U.S. trade deficit of $54.8 billion with Vietnam in the first quarter of 2025, the second-largest deficit after Taiwan.
Data & Statistics
- Proposed tariff on Vietnam: 12.5 %
- Economies investigated: 60
- Economies facing 12.5 % tariffs: 54 (including Vietnam)
- Economies facing 10 % tariffs: 6 (Canada, Ecuador, EU, Indonesia, Mexico, Pakistan)
- U.S. trade deficit with Vietnam (Q1 2025): $54.8 billion
Official Statements & Responses
Vietnam’s foreign ministry reiterated a zero-tolerance policy toward forced labour, citing full compliance with International Labour Organization conventions and free-trade-agreement obligations. It said Vietnam supplied “comprehensive and detailed information” to U.S. officials throughout the probe and will maintain constructive dialogue. The USTR, in its report, stated that Vietnam and 53 other economies failed to both impose and enforce prohibitions on forced-labour goods, justifying the proposed tariffs under Section 301.
Criticism & Opposition
U.S. officials argue that Vietnam’s reported measures are insufficient to block forced-labour goods from entering the U.S. market, citing a lack of transparency and effectiveness in enforcement.
Conflicting Reports & Gaps
Vietnam asserts full compliance with ILO standards, while the USTR maintains that Vietnam failed to impose and enforce forced-labour prohibitions, highlighting the absence of a mutually accepted verification mechanism.
Verbatim Quotes
- “Foreign Ministry Spokesperson Pham Thu Hang said: “The findings of the US Trade Representative’s investigation on forced labor practices do not accurately reflect the reality of Vietnam’s efforts to prevent and minimize forced labor.” — Pham Thu Hang, Foreign Ministry spokesperson
- “On that basis, Vietnam has been, is and will continue to engage and work with the United States in a constructive and cooperative spirit to resolve remaining differences, in accordance with bilateral and multilateral trade commitments of both sides, while consistently protecting the legitimate rights and interests of workers and businesses, Hang said.” — Pham Thu Hang
- “Vietnam’s consistent policy is to strictly prohibit all forms of forced labor and to fully comply with the regulations of the International Labour Organization (ILO) as well as commitments under free trade agreements.” — Pham Thu Hang
- “ Spokesperson Pham Thu Hang further emphasized that Vietnam has provided comprehensive and detailed information to the United States throughout the investigation process.” — Pham Thu Hang
What’s Next
The USTR’s tariff proposals will be subject to a public comment period ending July 6, with hearings on July 7; Vietnam is expected to file written responses.
