Vu Phi Diep, the director of Viet KTV, has been charged by the Economic Crime Police Department of Hanoi for violating copyright laws. The charges were announced on August 1, 2026, alleging that Diep, 45, copied musical works to create karaoke data for market distribution, resulting in illicit profits of approximately 852 million VND.

The police claim that Diep did not sign any copyright agreements but directed technical staff to copy music from various digital platforms. This music was then processed into karaoke data and converted into a proprietary format for integration into Viet KTV-branded devices.

According to the Vietnam Music Copyright Protection Center, around 1,500 music works under its management were exploited illegally, causing estimated damages of about 600 million VND. Viet KTV, founded by Diep, is known as a pioneer in hard disk karaoke solutions in Vietnam. The company launched its first karaoke version in 2008, featuring a 500GB hard drive.

From 2023 to June 2026, Viet KTV reportedly distributed 919 products, earning illicit profits of around 852 million VND. Recently, Vietnam has intensified its crackdown on intellectual property violations, including counterfeit goods and software copyright infringements. On July 25, authorities discovered and seized nearly 50,000 pairs of suspected counterfeit Nike and Air Jordan shoes at a factory in Ho Chi Minh City, based on information provided by the U.S. Homeland Security Investigations.

The U.S. has increased pressure on Vietnam regarding intellectual property enforcement. In late May, the U.S. Trade Representative (USTR) initiated an investigation under Section 301 of the Trade Act of 1974 to examine policies and practices related to the protection and enforcement of intellectual property rights in Vietnam. A month earlier, the USTR placed Vietnam on the Priority Foreign Country list, the highest warning level in its evaluation system. This marks the first time in 13 years that the U.S. has applied such strict classification to a country concerning intellectual property issues.

Violations of intellectual property rights are one of three trade investigations the U.S. is conducting against Vietnam in 2026. The second investigation concerns forced labor, which began on March 12, 2026. According to a report published on July 24, 2026, the USTR stated that Vietnam is among 54 economies that have not effectively implemented bans on importing goods produced with forced labor.

Starting July 25, the U.S. imposed new import tariffs on all goods from economies under investigation, with some exceptions. A total of 38 countries, including Vietnam, are subject to a 12.5% tariff related to forced labor issues, replacing a previous temporary tariff of 10% that had expired. These new tariffs are applied under Section 301 of the Trade Act of 1974, citing that many partners have not fully enforced bans on importing goods produced with forced labor.