Chips, planes and more: all the agreements between Vietnam and the US giants
Biden's visit to Vietnam not only elevates the relationship with the United States, now strategic partners on an equal footing with China, but served to sign numerous agreements on chips, artificial intelligence and aircraft. All the details
American President Joe Biden's visit to Vietnam – which began on Sunday, after the G20 concluded – brought great geopolitical and economic news.
A CONCRETE VICTORY FOR THE UNITED STATES
First, Washington and Hanoi have elevated the bilateral relationship to the rank of comprehensive strategic partnership, the highest in the Vietnamese hierarchy. It is only an apparently symbolic move: it is in fact a concrete and significant victory for the United States, given that Vietnam has placed them on the same diplomatic level as China.
The entire South-East Asia is a crucial region in the economic-political competition between America and China, both because it is experiencing a phase of notable development and digitalisation, and because the Americans would like to transform it into an alternative manufacturing hub to Beijing and into a stem Chinese expansionist claims in the Indo-Pacific. Not surprisingly, Biden called Vietnam “a critical power in the world and the leading indicator of this vital region.”
Hanoi, however, while concerned about China's aggressiveness in the South China Sea, has no intention of taking one side or the other. And in fact, despite the deepening of the relationship with the United States (and despite the sanctions), it is trying to purchase armaments from Russia .
NEW OPPORTUNITIES ON DEFENSE AND TRADE
Global strategic partnership status could lead to deepening military cooperation between America and Vietnam and greater economic opportunities: America is already the largest export market for Vietnam, which was last Asia's fastest growing economy. growth.
THE AMERICA-VIETNAM PARTNERSHIP ON MICROCHIPS
The United States and Vietnam have also signed a microchip partnership that aims to “support resilient semiconductor supply chains for U.S. industry, consumers and workers,” according to the White House. Several American technology companies, such as Google, Apple, Microsoft and Dell, have increased their presence in Vietnam or plan to establish themselves there to reduce exposure to China.
The effectiveness of this partnership, however, is doubtful. First of all, it is not clear how much the White House's economic contribution will amount to: the Biden administration's rich plan on microchips, the CHIPS Act, provides 52 billion dollars for manufacturing in the United States but dedicates just 100 million per year (for five years) to the development of foreign supply chains. A significant part of the latter sum, it seems , will be allocated to Vietnam.
Beyond funding, then, the production of microchips needs skilled workers and Vietnam – but also the United States itself – does not have enough of them.
ALL AMERICAN COMPANIES CELEBRATING IN VIETNAM
Finally, the Vietnam-US Innovation & Investment Summit was held today in Hanoi, which was attended by high-level executives from important American companies (Google, Intel, GlobalFoundries, Boeing, Amkor, Marvell) and Vietnamese (such as the financial services company MoMo and electric vehicle manufacturer VinFast).
According to the announcements, an important area of collaboration will be that of artificial intelligence. Microsoft, for example, has made it known that it will develop a generative artificial intelligence model designed for the needs of emerging markets. Instead, NVIDIA, one of the world's largest microchip companies, will collaborate with Vietnamese technology company FPT Corporation and Vingroup, the parent company of VinFast.
In semiconductors, Marvell and Synopsys will build design centers in Vietnam; next month Amkor will open an assembly, packaging and testing plant worth 1.6 billion near Hanoi. Intel's large 1.5 billion microchip assembly factory is already located in southern Vietnam.
The Vietnamese airline Vietnam Airlines will purchase fifty 737 Max planes from Boeing: an agreement that Reuters sources have valued at 7.5 billion.
Lastly, on energy, Honeywell will work with a Vietnamese partner company on a battery energy storage pilot project, the country's first.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/vietnam-stati-uniti-accordi-microchip-intelligenza-artificiale/ on Mon, 11 Sep 2023 08:50:28 +0000.