Vietnam-US promote cooperation on semiconductors, rare earths

At a meeting with the US business community in Ho Chi Minh City, Mr. Jose W. Fernandez, US Under Secretary of State for Economic Growth, Energy and the Environment, affirmed that the two countries are building a key trade architecture for the region's security and economy.

Mr. Jose W. Fernandez, Under Secretary of State for Economic Growth, Energy, and the Environment

HYPNOTIC

At an event organized by the American Chamber of Commerce on January 24, Deputy Minister Jose W. Fernandez emphasized the importance of the recent memorandums of understanding signed between Vietnam and the US in the field of semiconductors and building a workforce for this industry in Vietnam. The goal is to increase Vietnam's participation in the global supply chain, thereby contributing to enhancing security and prosperity for the region. In addition, rare earths are also the focus of the US Deputy Minister's working agenda this time.

Vietnam has strengths in semiconductors.

"Semiconductors are the main reason I came to Vietnam, especially in relation to the semiconductor supply chain. We are proud to cooperate with Vietnam in the semiconductor sector, which plays a key role today," said the US Deputy Secretary of State. He gave an impressive figure when he said that about 125 semiconductors are needed for every citizen of the world, with a total population of more than 8 billion people, reflecting the huge demand for semiconductor technology. Last year, the US President Joe Biden's administration passed the Chips and Science Act (CHIPS Act), which will invest more than $50 billion to support the introduction of chip manufacturing plants to this market. To realize the commitment, the Washington administration established the International Technology Security and Innovation (ITSI) Fund, and the US State Department received $500 million to build a network of trusted partners in the semiconductor sector over a period of 5 years. Deputy Minister Fernandez said that part of the ITSI funding is coming to Vietnam, thanks to Vietnam's strengths in semiconductor sampling, testing and packaging. He believes that the ITSI Fund will promote Vietnam's existing strengths by finding new investment opportunities and expanding human resources. The US Deputy Minister noted that the biggest limitation of some countries in the world today is not capital, but labor force. Simply put, they cannot find labor for this industry. Therefore, through the ITSI Fund, the US and Vietnam will cooperate to expand human resources in the semiconductor industry in both countries.

Rare earth opportunities

In addition to semiconductors, the US Deputy Secretary of State’s visit also focused on building potential cooperation efforts in the field of rare earths. Rare earth elements, a group of 17 elements with unique magnetic and electrochemical properties, are playing a key role in the global low-carbon energy transition. This is because they are widely used for energy storage and permanent magnets, as well as defense technology applications. Demand for rare earths is expected to continue to grow strongly between now and 2030, with neodymium, dysprosium and praseodymium being the raw materials for permanent magnets for electric and hybrid car engines and wind turbines. Consumer electronics, optics and lasers are also driving strong demand for rare earths. According to the US Geological Survey (USGS), Vietnam currently ranks second in the world's rare earth reserves and resources with about 22 million tons, after China. In addition, Vietnam is currently the only country outside of China with a vertically integrated rare earth magnet supply chain and has attracted interest from companies in many fields. Deputy Minister Fernandez said that to achieve the goal of net zero emissions by 2050, the world needs a stable supply of rare earths. And the US is looking to cooperate with Vietnam in this field, towards environmentally safe mining and diversifying the rare earth supply chain. Mr. Fernandez also affirmed that Vietnam and the US have a special relationship, and need to take advantage of existing opportunities to develop in a sustainable and secure direction. "The focus on Vietnam will not last forever. There are other countries that are ready to create the opportunities that we have," he reminded, adding that this was the main motivation for his working trip to Vietnam at the present time.

US Under Secretary of State visits Asia Mr. Jose W. Fernandez, US Under Secretary of State for Economic Growth, Energy and the Environment Jose W. Fernandez is visiting Vietnam as part of his Asia tour from January 22 to February 1. During his stay in Vietnam, Deputy Secretary Fernandez will focus on trade promotion, clean energy promotion, semiconductor and supply chain cooperation, and strengthening economic cooperation after the two countries upgraded their Comprehensive Strategic Partnership. Deputy Secretary Fernandez is also a Deputy Governor of the World Bank, the European Bank for Reconstruction and Development, and the Inter-American Development Bank.

Thanhnien.vn

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