US Under Secretary of State for Economic Growth, Energy and the Environment Jose W. Fernandez shared with the press some contents of his visit and work in Vietnam.
The focus of the trip is to enhance trade cooperation opportunities, promote clean energy, semiconductor and supply chain cooperation, and other economic cooperation, following the announcement to upgrade Vietnam-US relations to a Comprehensive Strategic Partnership in September 2023.
"During my days in Vietnam, I think I understand the pride of the Vietnamese people in their development, their continuous and consistent economic achievements. Along with that is a sense of optimism. They are not only proud of their past but also optimistic about their future," said Mr. Fernandez.
"Another thing you don't see often is humility," the US Deputy Secretary commented, " Vietnam is facing a bright future. But there is still a lot to learn from other countries, from working with other countries, and we come here with the spirit of trying to see how we can work with Vietnam to build a better future."
He also talked about the opportunities and competitive advantages that Vietnam can take advantage of to develop the semiconductor industry.
US Deputy Secretary of State Jose W. Fernandez.
- After signing the agreement to upgrade relations, how far have the two countries gone in cooperation on semiconductors and rare earths?
That was part of the focus of my visit. There was quite a bit of engagement around that, coming from the fact that last year, the US Congress enacted the Chip Act, which not only regulates semiconductor manufacturing in the US but also supports countries as they try to create international semiconductor value chains.
Over the years, we have learned that we need to diversify our supply chain, not only in semiconductors but also in other areas such as pharmaceuticals, critical minerals, etc. So Vietnam has become one of the 7 countries in the world that we have funded under the international semiconductor fund. And what we will do is work on developing the workforce, looking at ways to improve the investment environment for the semiconductor industry.
Companies around the world are telling us today that the biggest constraint they face as they try to expand their semiconductor supply chain is workforce development. We have companies telling us that they want to invest in Vietnam, but they are having trouble finding a qualified workforce, which is not unique to Vietnam.
So we will work with Vietnam and support Vietnam's goals of having more than 50,000 engineers in the next few years. That is very important for Vietnam's development in the semiconductor industry.
In addition, in the next month or two, we will receive recommendations from the OECD on how we can help Vietnam improve its semiconductor workforce. This is urgent because Vietnam now has the opportunity to benefit from a secure semiconductor supply chain, which is an important part of economic security for all of us.
- At the event this morning, you mentioned that American companies are ready to invest 8 billion USD in the semiconductor sector in Vietnam. Can you confirm and share more?
That's what I told the students today at the National Economics University, that right now, not next year, there are 15 companies that have told us that they are ready to invest (with a total value) up to 8 billion USD in semiconductors.
But they told us that they face some constraints, one of which is that they have committed to their shareholders and customers that they will only use renewable energy. So they are waiting for innovation and expansion of renewable energy in Vietnam, as well as waiting for licenses to be able to set up renewable energy systems in Vietnam.
This is an opportunity to do two things, both of which will benefit the people of Vietnam. One is to expand the semiconductor industry. And two, to increase clean energy in Vietnam. It is a great example of turning a challenge into an opportunity. As you know, Vietnam is one of the most vulnerable countries to climate change. It is possible to turn that vulnerability into an advantage by generating clean energy. It is a win-win situation.
- In your meetings, did you talk about incentives for investing in semiconductors in Vietnam and how are those incentives distributed?
I don’t want to go into the specifics of the conversation, or the tax issues with the Vietnamese government because that’s beyond my ability. But I believe that Vietnam’s motivation for developing this sector is that they recognize that this will benefit their young population, move them up the value chain. So this is something that they are willing to do and are interested in and we will talk about what we can do to support them in that effort.
- How do you evaluate the potential of Vietnamese electric vehicle companies in the US?
As you know, there is an investment by a Vietnamese company in North Carolina in this area and we are very pleased to see signs of foreign investment in the United States, which shows confidence in our economy. This effort also brings new technology to the United States, creates more jobs, increases investment. So we are very pleased to see Vietnamese investment in the United States.
- To what extent does the US government influence the decisions of companies in the semiconductor sector?
We can’t tell them what to do or dictate their decisions. But what we can do and are doing is working with Vietnam to improve the business environment, improve energy regulations to allow more companies to come into Vietnam.
Vietnam has a lot of advantages. You have a very young, educated workforce, which is a demographic plus. You also have a domestic market of 100 million people, an export culture, and know how to sell abroad. Because of all those advantages, Vietnam has helped us achieve our goal of diversifying the supply chain. And Vietnam can benefit from that.
We can’t tell companies where to go. But we can talk to them about the benefits of being in Vietnam and show them that there are options. That’s why our message to our colleagues in Vietnam is to seize the moment, understand the urgency of the competition out there and we believe that Vietnam and the Vietnamese people can benefit from winning this competition.
Phuong Anh
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