During a US state visit to Vietnam intended to establish economic relations, The White House announced today (11 September) that a new US-Vietnam Semiconductor Partnership will be established between the two countries.
President Biden and US Secretary of State Antony Blinken met with Vietnamese Prime Minister Minh at the Vietnam-US Innovation and Investment Summit alongside industry leaders to discuss future US investment into Vietnam’s tech sector.
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The US has expressed an interest in helping Vietnam attain its goal of becoming an upper income country by 2045 as well as creating a cooperative relationship between the two countries’ tech sectors.
As part of this new semiconductor partnership, the US and Vietnam pledge to “create favourable conditions” and facilitate the opening of each other’s markets to trade tech and other goods.
This partnership also eases Vietnam’s transition to market economy status, which would mean that businesses are overwhelmingly owned by people rather than the government.
Alongside aid to train Vietnam’s technological workforce, The White House has also acknowledged Vietnam’s potential as “major player” in the semiconductor industry and supply chain. To support this ambition, the US has invested a seed fund of $2m towards the country.
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By GlobalDataSecuring its place in the semiconductor supply chain, Arizona based company Amkor Technology has begun plans to build a semiconductor factory in Bac Ninh Province with construction expected to begin in October 2023.
Senior industry leaders from Google, Intel and Boeing were also in attendance at the summit, according to reports.
In addition to this, Nvidia was among the three tech companies to announce partnerships promoting AI within Vietnam.
Nvidia will be partnering with FPT, Viettel and VinGroup to deploy AI solutions across the cloud, automotive and healthcare industries.
Meta and Microsoft have also partnered with Vietnamese companies to roll out AI software across Vietnam to promote digital transformation.
According to GlobalData research, Vietnam is actually ahead of China in terms of mobile penetration rate and the percentage population of internet users as of 2022.
Vietnam’s share of high-technology exports also increased between 2019 and 2020, from 40% to 42%. However, this is still a lower volume of exports than peer nations such as Hong Kong (70%) and the Philippines (67%) during the same period.
