Geopolitical tensions may rise in the upcoming weeks due to strengthening alliances. As the U.S. and Vietnam forge closer strategic ties, Russia and North Korea are also deepening their relations.
The White House on Sunday announced a bevy of partnerships with Vietnam aimed at boosting areas like artificial intelligence (AI), aviation, semiconductors, and beyond.
Here’s what you need to know about the announcements.
Semiconductor Supply Chains: A new Memorandum of Cooperation recognizes Vietnam's role in creating resilient semiconductor supply chains, especially where re-shoring to the U.S. isn't feasible.
The U.S. is aiming to bolster Vietnam's semiconductor ecosystem, including its regulatory framework, infrastructure, and workforce, through the U.S. CHIPS Act's International Technology Security and Innovation Fund (ITSI Fund).
Major Initiatives: Arizona-based Amkor Technology Inc AMKR is set to kickstart its advanced factory in Bac Ninh Province come October of this year, with an initial investment of $1.6 billion.
California-based tech giants Synopsys Inc SNPS and Marvell Technology Inc MRVL will also venture into Vietnam with their semiconductor design and incubation centers.
Powering the Future: A battery energy storage system is in the works for Khanh Hoa Province, marking Vietnam's first. The pilot project, a collaboration between Honeywell International Inc HON and AMI AC Renewables, will usher in more renewable energy integration for Vietnam.
Aviation: Boeing Co BA and Vietnam Airlines are on the cusp of a pretty big deal — the purchase of 50 Boeing 737 MAX aircraft. The contract is set to create 33,000 jobs in the U.S. and boost Vietnam's aviation stature.
Tech Collaborations: Microsoft Corp MSFT, Nvidia Corp NVDA, Meta Platforms Inc META, and their Vietnamese partners are diving into AI solutions, cloud services, and digital transformation projects tailored for the emerging Vietnamese market.
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Travel And Tourism: VinFast Auto’s VFS $4 billion EV manufacturing plant in North Carolina is making waves, as it will increase trade and commerce between the two countries. Meanwhile, 3M Co MMM, Nobu Hospitality, and Viet Capital Real Estate are investing in improving traffic safety and boosting Vietnam's tourism allure with unique ventures.
Port & Energy: Seattle's SSA Marine is partnering with Gemadept, aiming to develop key port projects in southern Vietnam, including the proposed $6.7 billion Cai Mep Ha Logistics Center.
Climate and Aquaculture: Massachusetts-based Australis Aquaculture is set to infuse an additional $100 million for sustainable aquaculture operations in Van Phong Bay.
Financial and Capital Markets: “Bloomberg BusinessWeek Vietnam” will launch next month, and VNG — Vietnam’s largest internet provider — is filing for an IPO on the Nasdaq, becoming the first Vietnamese tech company to trade on U.S. markets.
Humanitarian Efforts: In addressing the past, the U.S. is using modern tech to identify war victims. Both nations announced their commitment to the dioxin remediation project at the Bien Hoa Air Base Area, with increased funding and extended timelines.
Dioxin is a chemical in Agent Orange, the herbicide the U.S. used in Vietnam during the Vietnam War. Efforts are also underway to boost health and social services for the disabled in Vietnam.
The U.S. also said it will provide an additional $25 million to Unexploded Ordnance activities — bringing the total investment to $230 million since 1993 — which are aimed at removing any intact and potentially explosive bombs left in Vietnam after the war.
President Joe Biden's Hanoi visit seems to have catalyzed a new chapter in U.S.-Vietnam relations.
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