US and Vietnamese Firms Explore Business Opportunities During Biden's Visit

U.S. President Joe Biden attends a meeting with Vietnam's Communist Party General Secretary Nguyen Phu Trong, at the Communist Party of Vietnam Headquarters in Hanoi, Vietnam, September 10, 2023. REUTERS/Evelyn Hockstein/File Photo

Senior executives from prominent U.S. and Vietnamese companies operating in the semiconductor, technology, and aviation sectors convened on Monday in an effort to establish business collaborations during President Joe Biden's visit to Hanoi. The visit has resulted in new agreements relating to aircraft and artificial intelligence (AI).

Key figures from Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing participated in the Vietnam-U.S. Innovation & Investment Summit, as outlined in the meeting's agenda. Vietnam was represented by executives from various firms, including electric car manufacturer VinFast, Vietnam Airlines, tech company FPT, MoMo (the country's largest e-wallet by users), and internet firm VNG, which filed for a U.S. IPO in August.

During the meeting, President Biden emphasized the deepening cooperation between the two nations in areas such as cloud computing, semiconductors, and artificial intelligence. He underscored Vietnam's significance in the supply of critical minerals, given its status as the possessor of the world's second-largest estimated deposits of rare earths, materials used in electric vehicles and wind turbines.

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This meeting, following a historic enhancement of diplomatic relations agreed upon on Sunday, underlines the U.S.'s interest in bolstering Vietnam's global role. In particular, the U.S. aims to enhance Vietnam's involvement in semiconductor manufacturing, reducing the sector's reliance on China-linked risks, such as trade disputes and tensions surrounding Taiwan.

Several agreements were revealed by the White House during the visit. These include Vietnam Airlines' purchase of 50 Boeing 737 Max jets, a deal valued at $7.8 billion, aligning with earlier reports from Reuters. Additionally, Microsoft plans to develop a "generative AI-based solution tailored for Vietnam and emerging markets."

Nvidia will collaborate with Vietnamese entities FPT, Viettel, and Vingroup (VinFast's parent company) on AI initiatives within Vietnam.

The White House also highlighted investments by U.S. companies in the chip sector in Vietnam, including plans by Marvell and Synopsys to establish chip design centers in the country. A new $1.6 billion Amkor factory near Hanoi, set to commence operations in October, will handle chip assembly, packaging, and testing.

Notably, U.S. conglomerate Honeywell will partner with a Vietnamese firm to launch a pilot project aimed at developing Vietnam's inaugural battery energy storage system.

The meeting, co-chaired by U.S. Secretary of State Antony Blinken and Vietnam's Minister of Investment Nguyen Chi Dung, was followed by discussions involving President Biden and Vietnam's Prime Minister Pham Minh Chinh. Dung expressed his hope that Vietnamese companies would expand their presence in the United States and integrate into the global supply chain, as indicated in a government statement.