US, Vietnam firms hold business summit during Biden visit

U.S. President Joe Biden attends a meeting with Vietnam’s Communist Party General Secretary Nguyen Phu Trong, at the Communist Party of Vietnam headquarters in Hanoi, Vietnam, September 10, 2023. REUTERS/Evelyn Hockstein/File photo

HANOI  -Executives at top U.S. and Vietnamese firms in the semiconductor, tech and aviation sectors met on Monday as part of U.S. President Joe Biden’s visit to Hanoi, seeking to forge business partnerships with new deals in AI unveiled.

Senior executives from Google, Intel, Amkor, Marvell, GlobalFoundries and Boeing attended the Vietnam-U.S. Innovation & Investment Summit, according to the meeting agenda.

From Vietnam, there were executives from half a dozen companies, including Nasdaq-listed electric car maker VinFast, flag carrier Vietnam Airlines, tech company FPT, MoMo, the country’s biggest e-wallet by users, as well as internet firm VNG, which filed in August for a U.S. IPO.

Biden reiterated at the meeting that the two countries were deepening cooperation in cloud computing, semiconductors and artificial intelligence, and stressed Vietnam was crucial for critical minerals supplies.

READ: US, Vietnam to elevate ties during Biden visit, with eye on China

The country has the world’s second-biggest estimated deposits of rare earths, which are used in electric vehicles and wind turbines.

The meeting, which followed a historic upgrade of diplomatic relations agreed on Sunday, underscored U.S. desire to boost Vietnam’s global role. This is particularly so in chipmaking with Washington seeking to reduce the sector’s exposure to China-linked risks, including trade friction and tensions over Taiwan.

U.S. State Secretary Antony Blinken and Vietnam’s investment minister Nguyen Chi Dzung chaired the meeting, which was followed by discussions with Biden and Vietnam’s Prime Minister Pham Minh Chinh.

Newly unveiled deals by the White House include plans by Microsoft to make a “generative AI-based solution tailored for Vietnam and emerging markets.”

Nvidia will also partner with Vietnam’s FPT, Viettel and Vingroup, VinFast’s parent company, on AI in the country, it said.

The White House also highlighted the number of chip-related investments by U.S. firms in Vietnam, including plans by Marvell and Synopsys to build chip design centers in the country.

A new $1.6 billion Amkor factory near Hanoi that will assemble, package and test chips is due to start operations in October, it added.

The investment value is on par with Intel’s $1.5 billion chip assembling plant in the south of the country – the company’s biggest worldwide. Sources said earlier this year that it may be expanded.

Vietnam Airlines will also purchase 50 Boeing 737 Max jets, the White House said, in an agreement that a source told Reuters was valued at about $7.5 billion.

U.S. conglomerate Honeywell will cooperate with a Vietnamese partner to launch a pilot project to develop Vietnam’s first battery energy storage system, the White House also said.