US President Joe Biden speaks at a banquet hosted by President Vo Van Thuong (Photo: VNA) Hanoi (VNA) – USPresident Joe Biden's visit to Vietnam last month seems to have ushered in anew era of expanded economic links between the two countries, said Japan’sNikkei Asia, adding that a fourth boom of foreign investment in Vietnam may bein the making.
The journal said the high-profile talks between the twoleaders were accompanied by some big business deals. Vietnam Airlines, thenational flag carrier, signed an initial agreement to buy 50 Boeing 737 Max jetsin a deal valued at about 10 billion USD.
Vietnam's leading tech firm, FPT Software, has announced astrategic partnership with the American startup Landing AI. Synopsys, a leadingsemiconductor design company, has signed a memorandum of understanding to help theVietnamese semiconductor industry cultivate its chip-design workforce.
It recalled that historically, Vietnam has witnessedthree significant booms in foreign direct investment. The first occurred whenHonda Motor began local two-wheeler production in 1997. The second wave spannedthe period from the early 2000s up to 2008. Notably, Samsung Electronics of theRepublic of Korea launched a mobile phone production base in the northern BacNinh province in 2009.
The third boom is believed to have come into full swing inthe mid-2010s. With its purchasing power increasing, Vietnam became a lucrativetarget for foreign consumer businesses. Japanese shopping behemoth Aeon, for instance,inaugurated its first Vietnamese store, Aeon Mall Tan Phu Celadon, in thecountry's largest city, Ho Chi Minh, in 2014.
Now Biden's visit may trigger a surge in US investment inVietnam, the journal said. US investments in Vietnam have been modest compared to those by Asianeconomic powers like Japan or the RoK. As of the end of 2022, the total US directinvestment in Vietnam was 11.4 billion USD, trailing behind the figures forcountries like the RoK with 80.9 billion USD, Singapore 70.8 billion USD andJapan 68.8 billion USD.
Vietnam Airlines and Boeing sign a MoU on sale of 50 Boeing 737 Max jets worth 10 billion USD (Photo: VNA) During his visit to the headquarters of chip-making giant Nvidiain San Francisco on September 19, Vietnamese Prime Minister Pham Minh Chinhcalled on Nvidia CEO Jensen Huang to establish a production base in Vietnam andcapitalise on it as its manufacturing hub in Southeast Asia.
PM Chinh also met with other prominent figures in theAmerican tech sector, including Microsoft founder Bill Gates and seniorexecutives from Meta, formerly known as Facebook, and Elon Musk's SpaceX.
According to the article, Vietnam is keen to pivot from itstraditional labour-intensive industries, such as garment manufacturing andelectronics assembly, toward more value-added high-tech sectors. Collaborationswith US tech companies, especially those dominant in the areas of semiconductorsand AI, will be crucial for the transformation of the country's industrialstructure./.
