US groups urged to invest in core sectors

Party General Secretary, State President To Lam (left) met with US President Joe Biden last week, photo VNA

Last week, Party General Secretary, State President To Lam attended the UN Summit of the Future and the 79th session of the UN General Assembly, and held working sessions in the United States.

The Vietnamese leader and US President Joe Biden agreed that both nations need to continue closely cooperation in effectively implementing the joint statement on establishing the US-Vietnam Comprehensive Strategic Partnership inked one year ago. In which, it is necessary to increase bilateral contacts and exchanges at all levels, especially at the top level. A special focus must be laid on boosting cooperation in economic, trade, and investment; high technology; and semiconductor; and on further promoting cooperation in high-quality human resources training which must be considered a breakthrough in the Comprehensive Strategic Partnership.

The Vietnamese leader met with representatives from major US groups interested in expanding their business and investment activities in Vietnam such as Google, Apple, Meta, and Supermicro, as well as investment funds including Blackstone and Warburg Pincus.

“The Vietnamese Party and state commit to providing favourable conditions for all foreign investors, including those from the United States, so they can perform well in Vietnam,” said Party General Secretary and State President Lam.

He suggested that US investors expand investment in industries and fields such as science and technology, innovation, research and development, the green and digital economy, the chip industry and semiconductors, AI, new and renewable energy, finance, financial centres, biotechnology, and healthcare.

New plans

Apple vice president Nick Ammann said Vietnam was not only a key market for Apple but also an attractive manufacturing base for the group’s exports to the global market.

“Thanks to the Vietnamese government’s support, Apple is developing and expanding production in Vietnam,” Ammann said.

US companies see Vietnam as both a manufacturing hub and a market for their products. Apple’s suppliers complete many of the company’s products in the country, while Intel has a large chip assembly factory, and defence businesses have long been in talks to sell security equipment to Vietnam.

In his meeting with Wally Liaw, co-founder and senior vice president of business development at IT solutions provider Supermicro, the Vietnamese leader welcomed the group’s proposal to cooperate with the country in developing AI data centres and AI server manufacturing ecosystems.

He also suggested that Supermicro and relevant partners negotiate a specific roadmap to implement cooperation projects, including those focused on providing solutions for developing infrastructure for national databases, ministries, sectors, and localities; and on supplying server solutions, developing AI data centres, and building supply chains for manufacturing AI server systems.

Supermicro is reportedly planning to coordinate with partners to explore the possibility of expanding investment in Vietnam, potentially making the country a manufacturing base for the group in the near future.

Meeting Stephen Schwarzman, CEO, and founder of investment fund Blackstone, Party General Secretary, State President Lam said that he appreciated Blackstone’s plans to invest in energy conversion projects in Vietnam. He suggested that Blackstone work with the Ministry of Industry and Trade and relevant agencies and partners to facilitate investment in this area.

Schwarzman noted that Blackstone was the world’s largest investment fund, managing assets worth over $1 trillion, and expressed the fund’s interest in expanding its investments in Vietnam. He added that Blackstone was actively exploring opportunities in developing AI data centres in Vietnam.

Additionally, Warburg Pincus CEO Jake Siewert told the Vietnamese leader that the fund has invested around $4 billion in Vietnam, making the country its third-largest investment destination in Asia after China and India.

Siewert said the fund wished to continue its investments in Vietnam, with particular interest in attracting green financial capital and participating in projects related to the Eighth Power Development Plan and renewable energy.

Last week, several cooperation deals were inked. They include an agreement on energy conversion and technological transfer between PetroVietnam and Kellogg Brown & Root; an MoU on research and provision of software solutions in the electricity and oil and gas sectors between PetroVietnam and GE; a cooperation deal in the liquefied natural gas between PetroVietnam Technical Services Corporation and Excelerate Energy; an MoU in AI, semiconductor, and data centre development between Sovico and Supermicro; and a cooperation deal in gas production between Wealth Power Group Vietnam and Eternal Natural Resources.

Notably, Vietjet and Honeywell last week signed a $1.1 billion deal for the latter to supply electric equipment and aviation technical services.

“The United States is one of the top foreign investors in Vietnam, with American companies investing in manufacturing and infrastructure, providing high-quality consumer, agricultural, and industrial goods and services,” Adam Sitkoff, executive director of the American Chamber of Commerce in Hanoi, told VIR.

“High-quality foreign investors not only help grow Vietnam’s economy but also foster growth across the ecosystem of local companies and entrepreneurs.”

The United States is expected to provide strong support for Vietnam’s workforce development initiatives in the semiconductor industry, a major focus of the Comprehensive Strategic Partnership. Vietnam is accelerating efforts to train 50,000-100,000 high-quality engineers for the semiconductor sector.

As of August 31, the US was Vietnam’s 11th-largest foreign investor, with a total registered capital of over $11.94 billion across nearly 1,400 valid projects. In the first eight months of 2024, total newly registered and additional capital, along with stake acquisitions and capital contributions from US investors, hit $135.8 million, up 27.5 per cent on-year. Meanwhile, Vietnam currently has 230 valid projects in the US, with a total registered capital of $1.26 billion.

Boost in agricultural ties

Vietnam and the United States have also pledged to strengthen trade cooperation, particularly in agriculture.

In mid-September, to mark the one-year anniversary of the Comprehensive Strategic Partnership, a US trade delegation of 100 participants, including 35 US business representatives, officials from nine State Departments of Agriculture, and representatives from 21 US Department of Agriculture cooperators, visited Vietnam. The multi-city trade mission spanned Ho Chi Minh City and Hanoi, also drawing international buyers from Myanmar, Cambodia, and Thailand.

The trade mission follows the recent expansion of market access for US peaches and nectarines. It was led by Under Secretary for Trade and Foreign Agricultural Affairs, Alexis Taylor, marking her second trip to Vietnam in two years.

“One of the key priorities now between both countries is to boost exports. US items don’t compete with Vietnamese items. Similar delegations from the US will continue visiting Vietnam,” Taylor told VIR.

She noted that Southeast Asian markets hold immense opportunities for US exporters, and Vietnamese consumers are increasingly choosing US products to meet the growing demands in the food processing, retail, and restaurant sectors. US exports hold a strong presence in tree nuts, fresh fruit, poultry, beef, and pork industries.

“Our presence in Vietnam is comprehensive and ambitious. We work closely with the Ministry of Agriculture and Rural Development and other agencies to help Vietnam improve its regulatory infrastructure and science-based decision-making, advancing efforts on agricultural biotechnology, market access for US products, maximum residue limits, fertiliser use, sustainability, and more,” she said.

Bilateral agricultural trade between Vietnam and the United States has grown rapidly over the last five years. Vietnam is now the 10th-largest importer of US agricultural products, while the US is Vietnam’s largest buyer of agricultural goods, importing $8.58 billion in the first eight months of this year, a 23.5 per cent increase on-year and accounting for 21.4 per cent of Vietnam’s total agriculture-fishery export turnover. Last year, the figure reached $10.96 billion, or 20.7 per cent.

Bui Thanh Son, deputy Prime Minister Minister of Foreign Affairs Over the past nearly 50 years, the relationship between Vietnam and the United Nations has been continually consolidated and strengthened, growing intensively and extensively. The UN has supported Vietnam in national reconstruction, post-war recovery, breaking the embargo, international integration, and, most recently, the fight against the pandemic and economic recovery. Vietnam has become a reliable, proactive, and responsible partner of the international community and the UN. The country has made significant contributions in terms of ideas, personnel, and resources across all key areas of the UN, including peacekeeping, security, and development cooperation. Vietnam took the lead in implementing the Millennium Development Goals in the 2000s. The country is now actively advancing the Sustainable Development Goals, staying at the forefront of the One UN Initiative, and playing an active role in the UNs’ major priorities related to peace, development, and ensuring human rights. Vietnam is trusted and highly regarded by the international community, successfully holding many important positions at the UN. Its leaders value Vietnam’s role and contributions and hope that the country will continue to play a proactive role in priority sectors.

Vietnam well-positioned for US groups Interest from the United States is riding high after trade ties were advanced just under a year ago. Winnie Wong, vice chairwoman of the American Chamber of Commerce in Ho Chi Minh City, spoke with VIR’s Bich Ngoc about the recent wave of US investment into Vietnam.

US-Vietnam status to be further reinforced Vietnam and the United States are set to further bilateral ties, especially in trade and investment, with the latter supporting the former in semiconductor development.