The United States and Vietnam have embarked on a significant path of commercial agreements and partnerships valued at billions of dollars, aiming to foster cooperation in various domains, including artificial intelligence (AI) technology. This announcement was made during a joint press conference on September 11. U.S. President Joe Biden emphasized that this marked a formal "escalation" in relations between the two nations. Key sectors of focus include cloud computing, semiconductors, and artificial intelligence.
The leaders of prominent companies in these fields, such as Google, Intel, Boeing, Amkor, Microsoft, and Nvidia, were also present at the meeting. Boeing and Amkor have existing deals in place, with Amkor planning to establish a new factory near Hanoi, Vietnam's capital. Starting in October, this facility will be responsible for assembling, packaging, and testing AI chips.
President Biden emphasized the deepening of collaboration in critical and emerging technologies, particularly in building a more robust semiconductor supply chain. He anticipated that this economic partnership would stimulate further trade and investment between the two countries. He clarified that the intent behind this collaboration was not to contain China but to establish a stable foundation in the region.
This latest agreement focused on artificial intelligence is considered to enhance the United States' standing in Vietnam's bilateral hierarchical relationship by two levels. Historically, this position had been occupied by China, Russia, India, and South Korea. The previous restraint in relations with the United States was influenced by a desire not to displease China and the disruption in relations due to the war.
Vietnam's remarkable economic growth positions it as one of the world's fastest-growing economies, currently ranked 34th globally with a GDP of approximately US$450 billion, according to data from Acclime, an Asian regional enterprise services provider. These developments in Vietnam are unfolding against the backdrop of global governments, particularly the United States and China, competing to develop and deploy advanced artificial intelligence systems.
In October 2022, the Biden administration instituted an export ban on the latest and most powerful semiconductor chips from the United States to China, with considerations to further tighten the ban. China, on the other hand, introduced new artificial intelligence regulations in August, leading to the release of over 70 artificial intelligence models with more than 1 billion parameters since the law's implementation.
