Biden In Vietnam For strategic Agreements And Commercial Partnerships

US President Joe Biden visited Hanoi after the G20 meeting in New Delhi, where he met with Vietnamese President Vo Van Thuong.

“The Presidents held an official meeting and state dinner at the Presidential Palace in Hanoi, Vietnam. President Biden and President Thuong discussed business, economic ties, and Vietnam’s ambition to become a high-income country by 2045. They discussed technology cooperation and Vietnam’s plan for transition to clean energy in accordance with the new US mandate,” the White House said in a statement.

Obviously, the trip also has geopolitical significance, aimed at establishing strong ties with one of the developing countries of the Pacific region. In fact, talks were carried out on the Indo-Pacific Economic Framework for Prosperity (IPEF) and the next meeting of Asia-Pacific Economic Cooperation (APEC) leaders, which will be held in San Francisco in November.

Vietnam is becoming increasingly strategic also due to the “chip war” between the USA and China. According to Reuters, it also provided an opportunity for managers from some of the most important American and Vietnamese companies in the semiconductor, high-tech, and aircraft industries to meet with the aim of establishing commercial partnerships. The two countries are discussing agreements that cover, in addition to semiconductors, artificial intelligence and cloud technologies, and Vietnam is fundamental to the supply of critical minerals for the development of these industries, given that it is home to important deposits of rare earth metals.

The White House also explained, according to Reuters, that Microsoft is deploying “generative AI solutions specifically designed for Vietnam and emerging markets” and that a new chip production plant ($1.6 billion investment) will soon open near Hanoi.

Currently, most of Vietnam’s trade is with China, India, Russia, and South Korea. Therefore, it is quite natural that this Biden’s move could be considered by Beijing as another “interference” in the Pacific region. At the same time, Biden, at a press conference following the meetings in Hanoi, said, according to the Italian agency ANSA, “I don’t want to hold China back, I want to make sure we have a relationship with China. President Xi faces economic challenges, and I want China’s success to be based on abiding by the rules.”