US companies in many fields are targeting the Vietnamese market, especially in the fields of semiconductor investment, mining and supply chains.
This is the content given at the Vietnam – United States Trade Forum 2023 by Ministry of Industry and Trade Organized in coordination with the American Chamber of Commerce in Vietnam and the governments of the States of Oregon and Colorado, USA.
At the Forum, Deputy Minister of Industry and Trade Do Thang Hai said that in the context of a rapidly changing and complex world as well as facing unprecedented challenges, the strong development of science and technology Technology, climate change, natural disasters, epidemics and supply chain disruptions are placing new requirements on economic – trade – investment cooperation between countries.
“The Indo-Pacific is forecast to be the most dynamically developing region in the world, but the entire region has not yet had comprehensive new trade agreements to effectively respond to risks. , challenges are emerging. Therefore, strengthening cooperation will contribute to prosperity and peace not only for countries in the region but also for countries outside the bloc”, Deputy Minister Do Thang Hai emphasized.
|Deputy Minister Do Thang Hai spoke at the Vietnam – United States Trade Forum 2023|
Also according to Deputy Minister Do Thang Hai, in the first months of 2023, the difficult economic situation and high inflation rate in the United States cause the purchasing power of consumer goods to decrease significantly. In addition, high interest rates, cyclical factors and large inventory reserves also caused Vietnam’s exports to the United States to decrease in the first months of the year.
However, this decrease is assessed as temporary and not a major trend in the near future. Exports have grown again in recent months. Along with that, the fact that the Fed is reaching the final stage of its interest rate hike cycle is helping US consumer purchasing power and confidence increase again. Vietnam’s traditional and strong export products such as textiles, furniture, footwear, electronics… are assessed to continue to recover with positive export growth rates.
Besides, Vietnam has been transforming strongly to become a major global manufacturing center. Vietnamese enterprises have produced many products with rich types, competitive prices and increasingly improved quality. After the pandemic as well as recent geopolitical and economic instability, many corporations, retail and wholesale distribution channels are promoting diversification strategies, ensuring sustainable supply and have chosen Vietnam. is one of the strategic locations in the global supply chain. This is a great opportunity. However, seizing the opportunity will also require great efforts from manufacturing and export businesses.
Deputy Minister of Industry and Trade assessed that the two countries officially upgrading their relationship to the level of comprehensive strategic partnership will create unprecedented opportunities to launch new, breakthrough areas of cooperation, building internal force for Vietnam to truly be present in global value chains. In particular, we focus on promoting the participation of Vietnamese businesses in the field of supplying raw materials, components, and equipment for the energy industry, aviation, digital economy, semiconductor ecosystem, and applications. Using artificial intelligence…
Representative of the US delegation, Ms. Susan Burns, US Consul General in City. Ho Chi Minh affirmed that US companies in many fields are targeting the Vietnamese market, especially the fields of semiconductor investment and mining. Currently, the US government has developed a detailed action plan to increase the resilience of the semiconductor industry.
|Vietnam – United States Trade Forum 2023|
Accordingly, to develop the global semiconductor ecosystem, the Government of this country has established a fund to support investment in developing the global semiconductor ecosystem with a value of 100 million USD. Also within this framework, the United States will evaluate the capacity to develop this field in Vietnam as a basis for building and promoting the development of the semiconductor and mining industry ecosystem. As for the mining sector, Vietnam is considered to have the second largest rare earth reserves after China and has not yet been exploited. Therefore, the United States will work with Vietnam to diversify the supply chain and attract US investment to exploit this rare earth.
Regarding this issue, Mr. Ace Wilson, Chief Financial Officer of Intel Vietnam Group, said that Intel has invested 1.5 billion USD in Vietnam. Since 2010, the group has exported 80 billion USD. In 2023 alone, Intel’s total export turnover is expected to reach 10 – 11 billion USD. In particular, up to 70% of Intel chip production for the region comes from Intel factories in Vietnam. Currently, the group has a strategy to diversify factories in many countries. Most recently, in June 2023, the group decided to invest in a manufacturing factory in Germany with a total investment capital of about 33 billion USD. This is part of efforts to expand semiconductor manufacturing activities in Europe. In the coming time, Intel pledges to continue to expand its investment further in Vietnam.
Mr. Daniel Nguyen, Vice Chairman of the Committee on Economic Development and Small Businesses, Member of the Oregon House Semiconductor Committee, shared that Vietnam has many potentials and opportunities to develop semiconductors. Currently, the United States has reviewed Vietnam’s legal framework and has invested 240 million USD to promote the development of the semiconductor ecosystem. Of which, 40 million USD is reserved to invest in new projects related to this field. Therefore, Vietnam needs to take advantage of resources for development semiconductor industry mine.
According to Mr. Daniel Nguyen, Vietnam needs to soon have a legal framework to promote the development of the semiconductor industry, mobilize private resources, and improve the quality of human resource training for the semiconductor industry.
Meanwhile, Ms. Barbara Weisel – International Trade Law Expert – Managing Director at Rock Creek Global Advisors – Former Assistant US Trade Representative said that in the coming time, through initiatives such as: Trade and Investment Framework (TIFA); Indo-Pacific Economic Framework (IPEF) Vietnam – US can continue to promote cooperation in supply chain recovery and clean energy development.
“Vietnam and the United States should actively cooperate to take the lead in developing specific and detailed action plans to increase the resilience and competitiveness of sectors that they both consider priorities. first, including semiconductors and important minerals,” Ms. Barbara Weisel shared.