US and Vietnam Collaborate on Chip Production and Clean Energy

Deputy Minister Jose Fernandez highlighted the economic ties between Vietnam and the U.S., particularly after President Joe Biden's visit in September 2023, elevating the relationship to a Comprehensive Strategic Partnership. 

During his current visit to Vietnam, Fernandez aims to enhance trade opportunities, promote clean energy, strengthen supply chain collaboration, and boost economic cooperation with Vietnam. 

Addressing investment opportunities in the semiconductor industry, he noted that around 1,000 billion microchips were traded globally in 2022. The Chips and Science Act, passed last year, demonstrates the U.S.'s commitment to investing over $50 billion to support chip manufacturing, including the International Technology and Security Innovation (ITSI) Fund. 

As part of this initiative, the U.S. plans to allocate $500 million to stabilize and expand global semiconductor production, ensure semiconductor supply chain resilience, and develop and deploy secure and reliable Information and Communication Technology (ICT). 

Vietnam, with its strengths in chip assembly, testing, and packaging, is recognized as a crucial partner in this endeavor. Cooperation aims to diversify and strengthen the global semiconductor ecosystem, addressing workforce development challenges in both countries, according to the U.S. Deputy Minister of Foreign Affairs. 

Regarding collaboration in the energy sector, Fernandez mentioned the Clean Energy Demand Initiative (CEDI), connecting countries and companies committed to using renewable energy. Since its launch at COP26 a few years ago, the Clean Energy Buyer's Alliance has partnered with 15 companies in Vietnam, signaling potential investments of up to $8 billion in clean energy infrastructure. 

Deputy Minister Fernandez emphasized the importance of diversifying rare earth supply chains while maintaining environmental sustainability. 

Trade growth between the two countries has demonstrated increasingly positive relations. In 2022, bilateral trade between Vietnam and the U.S. exceeded $138 billion, with Vietnam ranking 8th among U.S. trading partners. Over the past 30 years, U.S. companies have invested billions of dollars in Vietnam, contributing significantly to technology transfer, business management, and high-quality employment opportunities. 

Jose W. Fernandez expressed pride in the role of American companies in Vietnam, considering them important influencers bringing not only technology but also advanced business management and high-quality job opportunities to the country.