Vietnam's high-tech economic development orientation has many points in common with the US's strategy of shaping the supply chain in the region.
Prime Minister Pham Minh Chinh and US President Joe Biden attend the Vietnam - US Summit on Investment and Innovation at the Government Office on the morning of September 11 - Photo: NGUYEN KHANH
US President Joe Biden's recent visit to Vietnam was marked by the two countries officially upgrading their bilateral relations to a Comprehensive Strategic Partnership .
This move is expected to continue promoting economic development between the two countries, in which cooperation in science, technology and innovation is a breakthrough.
Common priorities
At the meeting with US President Joe Biden on September 11, Prime Minister Pham Minh Chinh also emphasized the importance of cooperation on innovation, creativity and high-tech economy.
Mr. Amitendu Palit, senior researcher on trade and economics, South Asian Economic Institute ( National University of Singapore), commented that Vietnam's high-tech economic development orientation can see the potential from the US "friend-shoring" strategy.
Accordingly, the Biden administration is trying to reshape the regional supply chain. Washington even expressed its desire to bring semiconductor investment back to the US and aim to become the world's leading semiconductor manufacturer.
In that roadmap, Washington is working with trusted partner countries to find supplies and other activities in the chip manufacturing supply chain, Mr. Palit told Tuoi Tre.
In recent years, although US investment in Vietnam has grown steadily, the total investment value is still quite modest compared to other partners of Vietnam such as Japan, South Korea, or Singapore.
Upgrading relations with the US could pave the way for positive change, according to Alicia Garcia Herrero, chief economist for Asia-Pacific at Natixis Bank.
"Key areas in Vietnam-US economic cooperation such as semiconductors, artificial intelligence (AI) and green technology can receive more foreign capital," she analyzed.
Efforts to seize the opportunity
The manufacturing capacity that Vietnam has developed over the past two to three decades is said to be well-positioned to join the semiconductor supply chain.
Mr. Palit said that Vietnam is expected to play an important role in strategies to protect the manufacturing and semiconductor supply chain because Vietnam is an electronics manufacturing country, where the demand for chips is very large.
High-tech industries such as semiconductors, AI, and green technology may have more opportunities with increased FDI flows after the Vietnam-US relationship upgrade. The Vietnamese government always prioritizes high-tech FDI, offering more incentives and benefits to businesses in this sector.
"However, the process from investment to strengthening production capacity will take time, especially when Vietnam still faces many domestic constraints such as infrastructure, policy development and dependence on raw materials," Ms. Herrero told Tuoi Tre.
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