How will Biden’s hi-tech pledges to Hanoi affect China’s role in Vietnam and global supply chain?

Name: Joe Biden says US and Vietnam ‘deepening cooperation’
Uploaded: 2023-09-22T16:01:16.000Z
Duration: 3 min 13 s
Description: Joe Biden says US and Vietnam ‘deepening cooperation’

Vietnam signed deals with US businesses during Biden’s visit when he vowed more cooperation in ‘cloud computing, semiconductors and artificial intelligence’

Experts warn Beijing’s tactic of using its Southeast Asian neighbour as a re-export centre may receive further scrutiny

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Vietnam is viewed as gaining during the US-China trade war that started in 2018. Now, Washington has made further pledges that could further alter Vietnam’s importance in the manufacturing value chain. Photo: Bloomberg

Kinling Loin Beijing

Published: 12:01am, 23 Sep 2023Updated: 1:34am, 23 Sep 2023

Washington’s latest pledges to hi-tech industries in Vietnam could further move the Southeast Asian nation up the manufacturing value chain, signalling a resolute de-risking from Beijing and subsequently threatening China’s industry dominance.

While it is not likely to push China out of supply chains in the short term, many analysts warn that Beijing’s tactic of using its Southeast Asian neighbour as a re-export centre may receive further scrutiny.

Vietnam signed billion-dollar deals with American businesses, including Boeing, Microsoft and Nvidia, during US President Joe Biden’s two-day state visit to Hanoi on September 10 – when he pledged to deepen cooperation in “cloud computing, semiconductors and artificial intelligence”.

Last week US Commerce Secretary Gina Raimondo further discussed with Vietnamese Prime Minister Pham Minh Chinh how to advance their comprehensive strategic partnership, including US recognition of Vietnam’s market economy status.

03:13

Joe Biden says US and Vietnam ‘deepening cooperation’

Alicia García-Herrero, chief Asia-Pacific economist for French investment bank Natixis, said while China was “much more present in Vietnam than the US” in terms of manufacturing companies and investment, the big question was whether Biden’s pledges and the US move into hi-tech production would “push China out of Vietnam”.

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How will Biden’s hi-tech pledges to Hanoi affect China’s role in Vietnam and global supply chain?

Vietnam signed deals with US businesses during Biden’s visit when he vowed more cooperation in ‘cloud computing, semiconductors and artificial intelligence’ Experts warn Beijing’s tactic of using its Southeast Asian neighbour as a re-export centre may receive further scrutiny

Vietnam signed deals with US businesses during Biden’s visit when he vowed more cooperation in ‘cloud computing, semiconductors and artificial intelligence’

Experts warn Beijing’s tactic of using its Southeast Asian neighbour as a re-export centre may receive further scrutiny