US & Vietnam Forms ‘Billion Dollar’ AI-chip Business Partnership

Sahana Kiran
Source – SFGATE

After years of development, AI has now become a reality. In response to the global competition in various fields, including defense and finance, nations worldwide are actively participating in the AI race. To maintain a competitive edge, the United States and Vietnam have established business agreements and partnerships aimed at advancing collaboration in AI technologies and related areas.

The two countries have recently revealed groundbreaking business agreements and collaborations amounting to billions of dollars. These accords encompass vital industries such as AI, cloud computing, and semiconductors. U.S. President Joe Biden celebrated this significant step as a formal enhancement of their relationship. He also underlined the significance of cooperation in emerging technologies.


Prominent tech industry giants such as Google, Intel, Boeing, Amkor, Microsoft, and Nvidia were part of the conference. This further underscores the importance of these collaborations in driving forward technological progress.

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Why Vietnam?

Vietnam’s remarkable economic progress has seen it rise to the 34th position globally with a GDP of $450 billion. Its shift from centralized economic management to increased openness has facilitated the United States’ emergence as one of its largest export destinations. Vietnam’s recent emphasis on AI and technology serves to reinforce its status as a prosperous economy with a bright outlook. It also reflects Vietnam’s preparedness to embrace AI as a pivotal catalyst for economic advancement.


In addition, Amkor and Boeing have already struck deals. They intend to set up a new manufacturing facility in close proximity to Hanoi, the capital city of Vietnam. Commencing operations in October, this plant will be responsible for the assembly, packaging, and testing of AI chips.

Is the US meddling with China and Vietnam’s relationship?

Recognizing the need to consider historical elements, it’s important to note that the relationship between the United States and Vietnam has been intricate, primarily due to the historical context of the Vietnam War. Over the years, Vietnam has been cautious in its actions to prevent any discord with China.

The United States and China are engaged in fierce competition to create and roll out cutting-edge AI systems. The export ban imposed in October 2022 on potent semiconductor chips bound for China serves as a clear indication of the United States’ commitment to preserving its competitive advantage.

Collaborating with Vietnam through this partnership serves a dual purpose: not only does it enable the United States to strengthen its position in this intense competition, but it also facilitates economic expansion and technological progress within the region. However, President Biden made it clear that its purpose is not to contain China. However, they aim to establish a steady presence in the region.

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