During US President Joe Biden’s visit to Vietnam on 10 September 2023, leaders from both countries officially elevated Vietnam-US relations to a Comprehensive Strategic Partnership (CSP).
The CSP between the US and Vietnam is expected to bring several economic benefits to Vietnam, most notably, increased foreign direct investment (FDI), trade expansion, technology transfer, supply chain diversification, improved infrastructure through US investment, and cooperation for sustainable development.
The economic aspect of the CSP comes in addition to the numerous other areas of strengthened cooperation, including diplomatic, scientific, cultural, and educational.
New impetus for US investments in Vietnam
The US economy is based on innovation and is widely regarded as the leader in high tech industries. Therefore, the US is a suitable partner when it comes to Vietnam’s ambition to achieve high-income country status by 2050 through replacing low value-added industries with high-tech and high value-added industries.
It is important to note that senior executives from Google, Intel, Amkor, Marvell, GlobalFoundries and Boeing joined a US-Vietnam Innovation and Investment Summit following the announcement of the CSP. The business roundtable was also attended by executives from numerous large Vietnamese companies.
First big announcements in terms of cooperation and FDIs linked to the CSP have been announced already. Nvidia and Microsoft will start large AI projects in Vietnam. California-based groups Synopsys and Marvell announced the construction of semiconductor design centres in Ho Chi Minh City. The US and Vietnam governments have also launched semiconductor workforce development initiatives, which are initially funded by the US government with $2 million.