Vietnam is significantly enhancing its cooperation with the United States in the fields of energy, artificial intelligence (AI), and data center development. On September 24, 2024, Vietnamese and US firms signed multiple memorandums of understanding (MoUs) aimed at fostering collaboration in these sectors. Notable agreements include energy technology transfer between PetroVietnam and Kellogg Brown & Root, liquefied natural gas (LNG) cooperation between PetroVietnam's PTSC and Excelerate Energy, as well as AI and data center development between Sovico Group and Supermicro [da94ebf9].
This initiative aligns with the recent emphasis by Party General Secretary and President Tô Lâm on Vietnam's strengths in producing IT professionals and programmers, which are crucial for advancing in high-tech sectors like semiconductors and AI. During a seminar in New York on September 22, 2024, Lâm expressed hopes for the US to become Vietnam's largest foreign investment source and for the US to recognize Vietnam as a market economy, despite the US Commerce Department's recent classification of Vietnam as a non-market economy [6f98ebd6].
On September 25, 2024, Lâm met with AES Corporation's Executive Vice President Juan Ignacio Rubiolo in New York, emphasizing Vietnam's support for foreign investors in clean energy. Lâm urged AES to maintain its project plans and collaborate with local firms like PV Gas and EVN. Rubiolo reaffirmed AES's commitment to long-term investment in Vietnam. Lâm also met Nate Franklin, Founder and Chairman of Pacifico Energy Group, praising its contributions since 2017 and urging acceleration of energy transition projects. Franklin highlighted Vietnam's advantages for clean energy development [b3fb86ea].
The seminar also attracted leaders from prominent US tech organizations, including AMD and Google, who expressed confidence in Vietnam's strategic approach towards technological development. Vietnam aims for rapid and sustainable growth through science and technology, identifying three strategic breakthroughs for socio-economic development by 2030: institutional reform, infrastructure development, and human resource enhancement [6f98ebd6].
In recent months, Vietnam has been a favored destination for Chinese manufacturers seeking to bypass US tariffs. However, rising costs and a less mature supply chain compared to China are leading some firms to reconsider their operations in Vietnam. For instance, Chervon, a Chinese power tool manufacturer, has reported lower-than-expected profits due to these rising costs. Taiwanese companies in Vietnam are similarly concerned about the impact of inflation on their profitability [df8c3495][e0f191d2].
Despite these challenges, Vietnam continues to focus on AI development opportunities, particularly in the semiconductor and manufacturing industries. The country is positioning itself as a key player in the AI ecosystem, with strategic partnerships and training programs aimed at fostering innovation [a69fe23f]. The integration of AI is also transforming the cosmetics industry, where AI-driven algorithms are personalizing consumer experiences and optimizing product development processes. The local cosmetics market is projected to grow steadily, reaching $3.5 billion by 2026, despite economic challenges [07bb883c].
As Vietnam navigates these dynamics, the cooperation with the US in high-tech sectors like semiconductors and AI, along with the new agreements in energy, could provide significant opportunities for growth and development, reinforcing its position in the global technology landscape.