Key businesses opportunities as General Secretary and President To Lam affirmed the potential for deeper Vietnam-US partnership

General Secretary and President To Lam delivered a speech in New York on Sunday evening (local time), celebrating the first anniversary of the Comprehensive Strategic Partnership for Peace, Cooperation, and Sustainable Development between Vietnam and the United States. This event, which also sets the stage for the 30th anniversary of diplomatic relations between the two nations in 2025, highlighted the growing potential for economic collaboration. The evolving relationship has opened new avenues for businesses, particularly for US-based firms operating in Vietnam. 

For companies in both nations, the deepening partnership presents significant growth opportunities, driven by cooperation in high-tech industries, human capital development, and increased bilateral trade.

High-tech industry collaboration

A major focus of the partnership is on enhancing cooperation in high-tech fields such as semiconductors and artificial intelligence (AI). Vietnam is positioning itself as a key player in the region’s tech landscape. Companies like NVIDIA and Qualcomm, already operating in Vietnam, are expected to benefit from expanded projects and increased governmental support. Notably, FPT and NVIDIA are set to build a $200 million AI factory in Vietnam. This high-tech collaboration offers businesses unique opportunities to leverage Vietnam’s rapidly growing digital economy. 

Human capital development 

Another critical update from the event was the emphasis on human capital development. With a focus on building a highly skilled workforce, businesses in Vietnam can expect easier access to talent in specialized sectors such as engineering and technology. Companies like Microsoft and Samsung, which rely on skilled labor for tech and manufacturing operations, stand to gain from this focus on developing human resources. 

Bipartisan support for stability 

As Vietnam and the US celebrate their Comprehensive Strategic Partnership, the commitment to mutual growth opens new avenues for businesses, enhancing opportunities in key sectors. 

• Bipartisan Support: The Comprehensive Strategic Partnership between Vietnam and the US enjoys broad bipartisan support in the US Congress, providing a strong foundation for collaboration. 
• Political Stability: This bipartisan backing translates into long-term political stability for businesses operating in Vietnam, creating a secure environment for growth. 
• Favorable Investment Climate: A stable political environment fosters a favorable investment climate, facilitating easier planning and execution of corporate strategies. 
• Confidence for Companies: This stability is critical for firms like Apple and Nike, which are expanding or maintaining their operations in Vietnam, enhancing their overall confidence. 
• Strategic Planning: Consequently, political stability increases business confidence, enabling these companies to engage in effective long-term strategic planning. 

Increased Bilateral Trade and Investment 

Vietnam’s strategic location in Southeast Asia, coupled with its importance in global trade, positions it as a growing destination for US foreign direct investment (FDI). As of 2023, the US ranks among the top investors in Vietnam, contributing over $11 billion in cumulative FDI. In ASEAN is the number one destination for U.S. investment in the Indo-Pacific and has received more than $338 billion in U.S. foreign direct investment, more than the U.S. has invested in China, India, Japan, and South Korea combined. Companies like Coca-Cola and Ford are set to benefit from enhanced bilateral trade opportunities, while Vietnamese businesses will gain broader access to US markets, fostering mutual growth and new partnerships. Notably, Ford Vietnam has become a symbol of The US investment relations in Vietnam after nearly 30 years of cooperation, exemplifying the successful collaboration between the two nations. 

Semiconductor industry growth 

The burgeoning semiconductor industry in Vietnam, driven by the Comprehensive Strategic Partnership with the US, offers significant benefits for both nations. Increased investment from major players like Texas Instruments, Micron Technology, and NIVDIA can lead to the establishment of advanced manufacturing facilities and R&D centers in Vietnam.

This influx of capital will diversify supply chains, allowing companies to reduce reliance on traditional markets and mitigate risks associated with geopolitical tensions. Additionally, collaboration between The US firms and local companies can spur innovation, resulting in joint ventures that enhance technological advancements. With supportive government policies in place, Vietnam is poised to become a critical hub for semiconductor production, creating a skilled workforce while promoting local manufacturing growth. This strategic focus on semiconductors not only opens new markets for The US companies but also contributes to the development of resilient supply chains, ensuring a stronger economic partnership between Vietnam and the United States.