U.S. President Joe Biden has signed a significant deal with Vietnam to strengthen cooperation in various areas, ranging from semiconductors to rare earth minerals. This development comes as Vietnam elevates the United States to its highest tier of diplomatic partnership, marking a historic moment, considering the complex history between the two nations, particularly the Vietnam War.
During his visit to the Vietnamese capital, Hanoi, President Biden, who had just attended the G20 Summit in India, held discussions with Nguyen Phu Trong, the leader of Vietnam’s ruling Communist Party. At a press conference, Biden highlighted the remarkable progress made in the bilateral relationship over the past 50 years, transitioning from a period of conflict to normalization. He referred to this as a “new elevated status” that would contribute to prosperity and security in a crucial region of the world.
The agreement, known as the U.S.-Vietnam Comprehensive Strategic Partnership, encompasses significant investments by American companies in semiconductor facilities and design centers in Vietnam. Additionally, Vietnam Airlines has committed to purchasing approximately $7.5 billion worth of Boeing 737 Max jets, a move that is expected to support over 33,000 direct and indirect jobs in the United States.
Furthermore, the United States will allocate substantial funding to address enduring issues stemming from the Vietnam War. This includes efforts to remediate dioxin contamination from Agent Orange and the removal of unexploded ordnance. The U.S. will also provide security assistance to Vietnam in countering illegal fishing activities in its waters.
Notably, the South China Sea dispute is a long-standing issue between China and Vietnam, with both nations asserting territorial rights and fishing rights. While the United States is enhancing its ties with Vietnam, President Biden emphasized that this is not an attempt to contain China. Instead, it is about establishing a stable foundation in the Indo-Pacific region.
The deal underscores the United States’ role as a comprehensive strategic partner for Vietnam, aligning it with China and Russia at the highest echelon of Vietnam’s diplomatic relationships. This partnership reflects the evolving dynamics of international relations and economic competition, particularly in the context of China’s growing influence.
In addition to its economic significance, the agreement also addresses rare earth elements, essential components in the production of batteries and electronics like smartphones. Vietnam possesses the world’s second-largest reserves of rare earths, making it a valuable partner in global supply chains.