The United States and Vietnam Advance Economic Ties

October 2023

U.S. President Joe Biden, top executives from prominent U.S. tech companies such as Google, Intel, and Vietnamese business leaders had a meeting following the bilateral agreement to strengthen cooperation between the two nations.

For the United States, Vietnam, a manufacturing powerhouse, holds a pivotal role in its strategy to reduce dependency on China for essential resources. The new accord includes provisions for cooperation in semiconductors and rare earths.

The “innovation and investment summit” featured executives from technology giant Google, chip manufacturers Intel and GlobalFoundries, and aerospace titan Boeing, alongside Biden and Secretary of State Antony Blinken. They held discussions with key figures from leading Vietnamese tech and manufacturing companies, including electric vehicle producer VinFast, internet firm VNG, and digital wallet service Momo.

During these talks, President Biden announced that Vietnam Airlines had entered into a remarkable USD 7.8 billion deal with Boeing to procure 50 medium-haul 737 airliners. Other notable agreements unveiled include Microsoft’s commitment to developing a “generative AI-based solution tailored for Vietnam,” and NVIDIA’s partnership with local firms to implement artificial intelligence solutions in the cloud, automotive, and healthcare sectors.

Part of the comprehensive partnership entails a significant focus on semiconductors, with the United States pledging to aid Vietnam in expanding its semiconductor capabilities and workforce training through financial support. Recently, President Biden took measures to limit U.S. investment in Chinese technology, particularly in sensitive sectors such as semiconductors, quantum computing, and artificial intelligence. In an effort to diversify and strengthen supply chains following disruptions in the global economy, the United States is increasingly turning to Vietnam, which boasts the world’s second-largest reserves of rare earths, another strategically vital resource after China.

The White House underscored U.S. investments in chip manufacturing in Vietnam, citing a forthcoming USD 1.6 billion factory near Hanoi set to commence operations soon.

(Source: France24, US Department of State)

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