During US President Joe Biden’s visit to Hanoi, top executives from leading US and Vietnamese companies in the semiconductor, technology, and aviation sectors gathered to explore new business opportunities. The summit focused on strengthening ties between the two nations and unveiling exciting new deals in artificial intelligence (AI).
The Vietnam-US Innovation & Investment Summit saw the participation of senior executives from notable companies such as Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing. On the Vietnamese side, executives from prominent firms, including VinFast, Vietnam Airlines, FPT, MoMo, and VNG, joined the discussions. VNG, which filed for a US IPO in August, represented Vietnam’s burgeoning tech sector.
Emphasis on cooperation in emerging technologies
President Biden emphasized the deepening cooperation between the United States and Vietnam in cloud computing, semiconductor manufacturing, and artificial intelligence. He also underscored Vietnam’s critical role in supplying rare earth minerals, essential for electric vehicles and wind turbines, as it possesses the world’s second-largest estimated deposits of these minerals.
This meeting followed a historic upgrade of diplomatic relations between the two countries, highlighting the United States’ commitment to enhancing Vietnam’s global significance. In particular, the United States aims to strengthen Vietnam’s position in chip manufacturing, reducing dependence on China-linked risks, including trade tensions and concerns over Taiwan.
Leadership at the Helm
US Secretary of State Antony Blinken and Vietnam’s Investment Minister Nguyen Chi Dzung co-chaired the summit, followed by discussions between President Biden and Vietnam’s Prime Minister Pham Minh Chinh. Their collective efforts aimed to foster innovation, investment, and collaboration between the two nations.
Innovative AI deals
Among the groundbreaking deals unveiled during the summit were initiatives in the realm of artificial intelligence:
1. Microsoft’s generative AI solution: Microsoft plans to develop a “generative AI-based solution tailored for Vietnam and emerging markets.” This initiative promises to bring cutting-edge AI technology to the region, fostering innovation and economic growth.
2. Nvidia’s strategic partnerships: Nvidia, a global leader in AI computing, announced partnerships with Vietnam’s FPT, Viettel, and Vingroup, the parent company of VinFast. These collaborations will drive advancements in artificial intelligence within Vietnam, benefiting various sectors of the economy.
Boosting semiconductor investments
The White House also highlighted substantial investments by US companies in Vietnam’s semiconductor industry:
1. Marvell and synopsys chip design centers: Marvell and Synopsys plan to establish chip design centers in Vietnam, demonstrating a significant commitment to the country’s semiconductor ecosystem.
2. Amkor’s state-of-the-art factory: Amkor is set to open a new $1.6 billion factory near Hanoi in October. This facility will focus on assembling, packaging, and testing chips, contributing to Vietnam’s growing role in semiconductor manufacturing.
3. Expanding Intel’s presence: Intel’s $1.5 billion chip assembling plant in southern Vietnam, the company’s largest globally, may undergo expansion. This signifies Vietnam’s increasing importance in Intel’s global operations.
Vietnam Airlines’ Boeing deal
During the summit, Vietnam Airlines made a significant announcement by revealing plans to purchase 50 Boeing 737 Max jets. This agreement, valued at approximately $7.5 billion, marks a substantial investment in the airline’s fleet and underscores the growing aviation partnership between the two countries.
Honeywell’s energy storage initiative
US conglomerate Honeywell is collaborating with a Vietnamese partner on a pilot project to develop Vietnam’s first battery energy storage system. This initiative aligns with the global transition to sustainable energy solutions and showcases the United States’ commitment to supporting Vietnam’s clean energy endeavors.
The Vietnam-US Innovation & Investment Summit held during President Biden’s visit to Hanoi has reinforced the strong ties between the United States and Vietnam. The unveiling of transformative AI deals, substantial semiconductor investments, and partnerships in various sectors underscores the commitment of both nations to fostering innovation, economic growth, and cooperation. This historic summit has set the stage for a promising future of collaboration between the United States and Vietnam in emerging technologies and beyond.
