HANOI, Sept 11 (Reuters) – Executives from top U.S. and Vietnamese companies in the semiconductor, technology and aerospace sectors met on Monday to forge business partnerships during U.S. President Joe Biden’s visit to Hanoi.
Senior executives from Google ( GOOGL.O ), Intel ( INTC.O ), Amkor ( AMKR.O ), Marvell ( MRVL.O ), GlobalFoundries ( GFS.O ) and Boeing ( BA.N ) attended the Vietnam-U.S. find . & Investment Summit, as per meeting agenda.
From Vietnam, there were executives from half a dozen companies, including Nasdaq-listed electric car maker Vinfast, flag carrier Vietnam Airlines ( HVN.HM ), technology company FPT ( FPT.HM ), MoMo. , as well as internet giant VNG, filed for a US IPO in August.
Biden reiterated at the meeting that the two countries are deepening cooperation in cloud computing, semiconductors and artificial intelligence, stressing that Vietnam is important for important mineral supplies.
The country has the world’s second-largest estimated deposits of rare earths, which are used in electric vehicles and wind turbines.
The meeting, which followed a historic upgrade of diplomatic ties agreed on Sunday, underscored the United States’ desire to raise Vietnam’s global role. This is particularly the case in chipmaking with Washington seeking to reduce the sector’s exposure to China-related risks, including trade frictions and tensions over Taiwan.
Among the deals announced by the White House during the trip was Vietnam Airlines’ purchase of 50 Boeing 737 Max jets, in a deal that an earlier Reuters report said was worth $7.8 billion.
The White House announced plans for Microsoft ( MSFT.O ) to develop an “AI-based solution tailored for Vietnam and emerging markets.”
Nvidia ( NVDA.O ) will partner with Vietnam’s FPT, Viettel and Vingroup ( VIC.HM ), VinFast’s parent company, on AI in the country, it said.
The White House also highlighted a number of chip-related investments by U.S. companies in Vietnam, including plans by Marvell and Synapsys ( SNPS.O ) to build chip design centers in the country.
Amcor’s $1.6 billion factory near Hanoi, which will assemble, package and test the chips, is scheduled to begin operations in October.
The investment value is on par with Intel’s $1.5 billion chip assembly plant in the south of the country — the largest in the world. Sources said earlier this year that it could be expanded.
The White House also said U.S. conglomerate Honeywell ( HON.O ) would collaborate with a Vietnamese partner to launch a pilot project to develop Vietnam’s first battery energy storage system.
U.S. Secretary of State Anthony Blinken and Vietnam’s Investment Minister Nguyen Chi Dung chaired the meeting, which followed discussions with Biden and Vietnamese Prime Minister Bam Minh Sinh.
According to a government report, Dung also told the crowd that he believed Vietnamese companies could expand into the United States and join the global supply chain.
Reporting by Phuong Nyugen, Nandita Bose and Francesco Guarascio @fraguarascio; Editing by Edwina Gibbs
Our Standards: Thomson Reuters Trust Principles.
Francesco leads a team of reporters in Vietnam, covering leading financial and political news in the fast-growing Southeast Asian country, focusing on supply chains and manufacturing investments in a number of sectors, including electronics, semiconductors, automotive and renewables. Before Hanoi, Francesco worked in Brussels on EU affairs. He was part of Reuters’ core global team covering the COVID-19 pandemic and participated in investigations into money laundering and corruption in Europe. She is an avid traveler, always eager to backpack to explore new places.