Biden Secures Strategic Deals in Vietnam Amid Complex Diplomatic Ties
In a significant diplomatic move, U.S. President Joe Biden and Vietnam have forged ties over semiconductors and minerals. This strategic partnership propels Washington to Vietnam’s top diplomatic status, a pedestal shared with global powerhouses China and Russia.
Historical Context: From Strife to Alliance
For the U.S., these developments mark a long-awaited upgrade in its relationship with the Southeast Asian manufacturing giant. As global supply chains face disruptions and vulnerabilities, particularly from risks associated with China, the U.S. views Vietnam as a pivotal ally in its efforts to bolster these networks. This is especially relevant given the past tensions between the two nations.
Biden, visiting Hanoi, remarked on the deep-rooted progress spanning five decades: “We can trace a 50-year arc of progress between our nations, from conflict to normalization, to this new elevated status.” This evolution of ties underscores the shifting dynamics in international relations. The ceremonial welcome, hosted by Vietnam’s Communist Party and featuring U.S. national symbols, also illustrates Vietnam’s intent to foster this partnership.
Vietnam: The Diplomatic Tightrope
Vietnam currently navigates complex relations between the U.S. and China. While it continues to leverage its position as a vital tech and textile exporter, it also aims to establish a firm foothold in the competitive global manufacturing landscape. However, Vietnam doesn’t intend to place all its bets on one superpower. Notably, China’s top brass, potentially including President Xi Jinping, may soon visit Vietnam to further their diplomatic ties. Biden confirmed discussions on stability with Xi’s deputy at the G20.
Compliments and Connections
While discussing the renewed ties, Communist Party General Secretary Nguyen Phu Trong humorously commented on Biden’s age and appearance, highlighting the camaraderie between the leaders.
Russian Relations and Potential U.S. Sanctions
Vietnam’s association with Russia, especially concerning arms deals amid the ongoing Ukrainian conflict, is another intricate dimension. Documentation obtained by Reuters showcases Vietnam’s intent to acquire heavy weaponry, such as anti-ship missiles, antisubmarine aircraft, antiaircraft missile systems, and fighter jets from Russia. This prospective $8 billion arms deal could pose sanction risks for Vietnam.
However, Vietnam seems to be casting a wide net, engaging with multiple arms suppliers, including the U.S. Recent weeks have seen Vietnam hosting defense discussions with Russian officials. Jon Finer, the U.S. principal deputy national security adviser, addressed the evolving U.S.-Vietnam defense ties. He emphasized the U.S. intent to help Vietnam diversify its military supplies, possibly reducing its dependence on Russia, with whom they seem increasingly uncomfortable.
Economic Ties: Semiconductors, Aviation, and Rare Earths
Bilateral trade between the U.S. and Vietnam is surging. The South China Sea witnesses mounting tensions due to territorial disputes between Vietnam and China. Reflecting the deepening economic ties, Vietnam Airlines is on the cusp of securing a deal for 50 Boeing 737 Max jets, estimated at $10 billion.
Several U.S. tech conglomerates, including Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing, are set to convene with their Vietnamese counterparts, marking Vietnam’s emergence as a promising destination for tech investments. But the cornerstone of these engagements revolves around semiconductors. U.S. officials have highlighted the importance of this sector during Biden’s visit. While specifics remain uncertain, Vietnam could substantially benefit from the CHIPS Act, which allocates $500 million over five years for strengthening global semiconductor supply chains. Furthermore, addressing the skills gap in Vietnam’s semiconductor sector is also on the cards.
Another area of focus is the supply chain for critical minerals, particularly rare earths. With Vietnam possessing substantial rare earth deposits, only second to China, securing this supply chain is paramount for the U.S. Despite scant details and past unsuccessful attempts at partnerships, expectations are high for an agreement during Biden’s visit.
Human Rights: A Lingering Concern
Amid these advancements, human rights in Vietnam remain a contentious topic. The U.S. has consistently critiqued Vietnam for its perceived infringement on freedom of expression and the incarceration of activists. However, as diplomatic channels open, there’s speculation that Vietnam might exhibit goodwill gestures, possibly releasing some activists.
Conclusion
President Biden’s visit to Vietnam signifies a new era in U.S.-Vietnam relations. As the global geopolitical landscape evolves, Vietnam emerges as a critical player, balancing its ties with superpowers while securing its position in the global economy. With agreements on semiconductors and rare earths, and the possibility of arms deals, the future of this partnership holds promise. Yet, as with any international relation, complexities abound, and only time will reveal the depth and endurance of this renewed alliance.
Biden Secures Strategic Deals in Vietnam Amid Complex Diplomatic Ties
In a significant diplomatic move, U.S. President Joe Biden and Vietnam have forged ties over semiconductors and minerals. This strategic partnership propels Washington to Vietnam’s top diplomatic status, a pedestal shared with global powerhouses China and Russia.
Historical Context: From Strife to Alliance
For the U.S., these developments mark a long-awaited upgrade in its relationship with the Southeast Asian manufacturing giant. As global supply chains face disruptions and vulnerabilities, particularly from risks associated with China, the U.S. views Vietnam as a pivotal ally in its efforts to bolster these networks. This is especially relevant given the past tensions between the two nations.
Biden, visiting Hanoi, remarked on the deep-rooted progress spanning five decades: “We can trace a 50-year arc of progress between our nations, from conflict to normalization, to this new elevated status.” This evolution of ties underscores the shifting dynamics in international relations. The ceremonial welcome, hosted by Vietnam’s Communist Party and featuring U.S. national symbols, also illustrates Vietnam’s intent to foster this partnership.
Vietnam: The Diplomatic Tightrope
Vietnam currently navigates complex relations between the U.S. and China. While it continues to leverage its position as a vital tech and textile exporter, it also aims to establish a firm foothold in the competitive global manufacturing landscape. However, Vietnam doesn’t intend to place all its bets on one superpower. Notably, China’s top brass, potentially including President Xi Jinping, may soon visit Vietnam to further their diplomatic ties. Biden confirmed discussions on stability with Xi’s deputy at the G20.
Compliments and Connections
While discussing the renewed ties, Communist Party General Secretary Nguyen Phu Trong humorously commented on Biden’s age and appearance, highlighting the camaraderie between the leaders.
Russian Relations and Potential U.S. Sanctions
Vietnam’s association with Russia, especially concerning arms deals amid the ongoing Ukrainian conflict, is another intricate dimension. Documentation obtained by Reuters showcases Vietnam’s intent to acquire heavy weaponry, such as anti-ship missiles, antisubmarine aircraft, antiaircraft missile systems, and fighter jets from Russia. This prospective $8 billion arms deal could pose sanction risks for Vietnam.
However, Vietnam seems to be casting a wide net, engaging with multiple arms suppliers, including the U.S. Recent weeks have seen Vietnam hosting defense discussions with Russian officials. Jon Finer, the U.S. principal deputy national security adviser, addressed the evolving U.S.-Vietnam defense ties. He emphasized the U.S. intent to help Vietnam diversify its military supplies, possibly reducing its dependence on Russia, with whom they seem increasingly uncomfortable.
Economic Ties: Semiconductors, Aviation, and Rare Earths
Bilateral trade between the U.S. and Vietnam is surging. The South China Sea witnesses mounting tensions due to territorial disputes between Vietnam and China. Reflecting the deepening economic ties, Vietnam Airlines is on the cusp of securing a deal for 50 Boeing 737 Max jets, estimated at $10 billion.
Several U.S. tech conglomerates, including Google, Intel, Amkor, Marvell, GlobalFoundries, and Boeing, are set to convene with their Vietnamese counterparts, marking Vietnam’s emergence as a promising destination for tech investments. But the cornerstone of these engagements revolves around semiconductors. U.S. officials have highlighted the importance of this sector during Biden’s visit. While specifics remain uncertain, Vietnam could substantially benefit from the CHIPS Act, which allocates $500 million over five years for strengthening global semiconductor supply chains. Furthermore, addressing the skills gap in Vietnam’s semiconductor sector is also on the cards.
Another area of focus is the supply chain for critical minerals, particularly rare earths. With Vietnam possessing substantial rare earth deposits, only second to China, securing this supply chain is paramount for the U.S. Despite scant details and past unsuccessful attempts at partnerships, expectations are high for an agreement during Biden’s visit.
Human Rights: A Lingering Concern
Amid these advancements, human rights in Vietnam remain a contentious topic. The U.S. has consistently critiqued Vietnam for its perceived infringement on freedom of expression and the incarceration of activists. However, as diplomatic channels open, there’s speculation that Vietnam might exhibit goodwill gestures, possibly releasing some activists.
Conclusion
President Biden’s visit to Vietnam signifies a new era in U.S.-Vietnam relations. As the global geopolitical landscape evolves, Vietnam emerges as a critical player, balancing its ties with superpowers while securing its position in the global economy. With agreements on semiconductors and rare earths, and the possibility of arms deals, the future of this partnership holds promise. Yet, as with any international relation, complexities abound, and only time will reveal the depth and endurance of this renewed alliance.
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