US and Vietnam to expand cooperation in semiconductors and supply chain diversification

Asia-Pacific, News, US March 28, 2024 , by IRIA No Comments

The United States and Vietnam agreed to expand cooperation in key sectors, including the semiconductor ecosystem, supply chain diversification, security, and human rights as U.S. Secretary of State Blinken hosted Vietnamese Foreign Minister Son in Washington, D.C.

U.S. Secretary Antony Blinken met with Vietnamese Foreign Minister Bui Thanh Son for the inaugural Comprehensive Strategic Partnership foreign ministerial meeting.

According to the State Department, “Secretary Blinken and Foreign Minister Son reaffirmed the strength of the U.S.-Vietnam relationship and reflected on progress since the elevation of ties during President Biden’s historic visit to Hanoi in September 2023.”

The two leaders also discussed shared regional priorities, including a “free, open, connected, prosperous, resilient, and secure Indo-Pacific region” as well as agreed to promote stability in the South China Sea.

The United States is expanding cooperation in semiconductors and supply chain diversification with Vietnam to counterbalance China in the region. The State Department said, “The Secretary and Foreign Minister addressed ways in which the United States and Vietnam can expand cooperation in key areas.”

U.S. Secretary Antony Blinken and Vietnamese Foreign Minister Bui Thanh Son — *^{U.S. Secretary of State Antony Blinken meets with Vietnamese Foreign Minister Bui Thanh Son at the State Department in Washington, U.S., March 25, 2024. (Image Credit: Reuters/Kevin Lamarque)}*

Semiconductors and supply chain

Semiconductors serve as the foundational element of today’s economy as broad-ranging products from vehicles to medical devices increasingly depend on semiconductors.

The U.S. seeks to reduce its reliance on Chinese supply chains by promoting domestic manufacture and trade with reliable partners. The United States considers Vietnam a dependable partner in ensuring the semiconductor supply chain is diverse and resilient.

Last year, the U.S. State Department spokesperson said that the United States seeks to enhance collaboration with Vietnam to “identify new opportunities that attract industry investments and expand the technical workforces in both countries” by “building on Vietnam’s existing strengths in assembly, testing, and packaging”.

In January 2024, U.S. semiconductors firms expressed interest in investing $8 billion in Vietnam as the Southeast Asian nation is seeking to attract chipmakers from the United States and boost its renewable energy sector.

*^{Production of semiconductor chips. (Image Credit: VCG/Globaltimes)}*

US-Vietnam partnership

Next year the U.S. and Vietnam would mark the 30th anniversary of normalization of ties and bilateral relations. In this regard, the Vietnamese foreign minister highlighted the importance of strengthening bilateral relations, especially after the upgradation of bilateral ties to a comprehensive strategic partnership.

U.S. Secretary of State Blinken said during his meeting with the Vietnamese delegation that both countries have “moved forward together in strengthening and deepening our collaboration in critical areas, everything from semiconductors to supply chains to educational and technological exchanges, people-to-people contacts, and of course our ongoing commitment to war legacies.”

Blinken highlighted that “This is a demonstration of not only our commitment to the Indo-Pacific but our commitment to the central role that Vietnam and the relationship between our countries plays in the Indo-Pacific.”

Great meeting with USAID Administrator @PowerUSAID. We focus on the next stage of Viet Nam’s development through deepening existing cooperation and opening up new areas in line with the 🇻🇳🇺🇸 CSP @USAID pic.twitter.com/qICQorBPFf
— Bui Thanh Son (@FMBuiThanhSon) March 26, 2024

Vietnamese Foreign Minister Son also held a meeting with U.S. National Security Advisor Jake Sullivan to discuss measures for effectively implementing the U.S.-Vietnam Comprehensive Strategic Partnership. While in the U.S., he also met with USAID Administrator Samantha Power and discussed the next stages of Vietnam’s development through deepening existing ties and opening up new areas of cooperation.