The BGA Vietnam team, led by Managing Director Ha Nguyen, wrote an update to clients on the recently upgraded U.S.-Vietnam relationship.

Context

  • U.S. President Joe Biden visited Hanoi from September 10-11 to upgrade bilateral relations between the United States and Vietnam. He met with General Secretary of the Communist Party of Vietnam Nguyen Phu Trong; President Vo Van Thuong, who hosted him at a state luncheon; Prime Minister Pham Minh Chinh; and National Assembly Chairman Vuong Dinh Hue.
  • The highlight of the visit was Biden and Trong’s announcement upgrading the bilateral relationship from a “comprehensive partnership” to a “comprehensive strategic partnership” — a level Vietnam has with only four other countries: China, Russia, India and Korea. The upgrade is expected to broaden and deepen cooperation and institutional ties, with a focus on semiconductors and innovation, trade and investment, science and technology, higher education and training.

Significance

  • Biden witnessed the signing of several business deals and partnerships, including Amkor Technology’s $1.6 billion investment in a semiconductor factory outside Hanoi, Microsoft and Trusting Social’s investment to develop generative artificial intelligence and SSA Marine and Gemadept’s collaboration in developing port projects in southern Vietnam.
  • The security cooperation announcement is modest compared to the business announcement. A donation of $8.9 million will be granted for new programs and donated equipment to help Vietnam improve its capacity to fight regional and international transnational crime; improve maritime domain awareness, port facility security and cargo security; and counter illegal and unregulated fishing.

Implications

  • Companies should note that Vietnamese leaders are optimistic about the future of economic ties with the United States. Trade turnover between the two countries has increased 16 percent per year on average since the normalization of relations.
  • The United States has become one of Vietnam’s largest export markets, with turnover exceeding $100 billion. The United States is the 11th-largest investor in Vietnam, and Vietnam is the largest trade partner of the United States among the Association of Southeast Asian Nations (ASEAN) countries.

We will continue to keep you updated on developments in Vietnam as they occur. If you have any comments or questions, please contact BGA Vietnam Managing Director Ha Nguyen at vietha@bowergroupasia.com.

Best regards,

BGA Vietnam Team

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Managing Director

Ha is a highly respected Vietnamese lawyer, with special expertise in financial transactions, mergers and acquisitions, as well as general business, trade and investment-related issues. Before joining BGA as managing director for Vietnam, Ha managed the Vietnam operations of BrooksBowerAsia for three years. She built and led the Vietnam team and serviced clients in various sectors ranging from energy and ICT to healthcare, logistics and consumer production. Ha practiced law in Vietnam in the 1990s, providing legal advice and consulting services to Fortune 500 clients. She also participated in drafting a number of laws and regulations, including the Foreign Investment ... Read More