Science and Technology Cooperation New Pillar in Vietnam-U.S. Comprehensive Strategic Partnership

In recent years, cooperation in science, technology and innovation between Vietnam and the United States has made significant progress, especially after the two countries elevated their relationship to the Comprehensive Strategic Partnership with breakthrough cooperation pillars such as innovation and the semiconductor industry.

Great potential for cooperation

Vietnam defines science, technology and innovation as one of key drivers for national development. With the principle “domestic strength as the fundamental, strategic, long-term and decisive factor; foreign resources as important and breakthrough drives,” Vietnam's consistent policy is calling for investment and market opening with all partners and businesses worldwide, with a particular focus on U.S. companies.

Following the normalization of diplomatic relations in 1995, the two sides have actively promoted science and technology cooperation and jointly built legal frameworks for this collaboration. In 2000, the Vietnam - U.S. Science and Technology Cooperation Agreement was signed, providing a legal foundation and direction for future cooperation activities.

At the “Vietnam-U.S. Summit on Investment and Innovation” in September 2023, Prime Minister Pham Minh Chinh and U.S. President Joe Biden agreed to make technology, innovation and investment true new pillars of the Vietnam-U.S. Comprehensive Strategic Partnership. These areas are also defined by Vietnam as key drivers of economic growth to 2030, with a vision to 2045.

After elevating the relationship, Vietnam and the U.S. have discussed many in-depth cooperation initiatives in science, technology and innovation. For example, in the aviation industry, Boeing and Vietnam Airlines signed a multibillion-dollar agreement to purchase 50 Boeing 737 MAX aircraft. This agreement created over 33,000 jobs in the U.S. Boeing also committed to contributing to science, technology and innovation development in Vietnam, starting with aviation workforce training programs.

In the semiconductor industry, Arizona-based Amkor Technology Inc. began construction of a US$1.6-billion factory in Bac Ninh in October 2023. California-based Synopsys Inc. launched a semiconductor design and startup center in collaboration with Saigon Hi-Tech Park. Marvell, headquartered in California, announced plans to establish a world-leading semiconductor design center in Ho Chi Minh City.

In promoting technology partnerships, Microsoft and Truthing Social announced an agreement on innovative AI-based solutions development tailored to Vietnam and emerging markets. Nvidia is working with FPT, Viettel and Vingroup to implement AI in cloud computing, automotive and healthcare. Meta Platforms and the National Innovation Center launched the Vietnam Innovation Challenge program to accelerate digital transformation among small and medium-sized enterprises (SMEs).

Vietnam already issued the National Strategy for AI Development in 2021, the Vietnam Semiconductor Industry Development Strategy to 2030, with a vision to 2050), and the Program on "Developing Semiconductor Human Resources to 2030, with an eye to 2050." Accordingly, in the coming time, Vietnam will step up the training of high-quality human resources for the AI and semiconductor industries, with the goal of training 50,000 engineers by 2030.

Currently, several major Vietnamese tech firms are actively participating in the semiconductor and AI sectors, with FPT Corporation being a prominent example. The firm has made strong investments in AI and semiconductor research and development for many years, collaborated with global top-notch AI experts such as Landing AI, Mila and Nvidia, and planned to invest US$200 million in establishing an AI factory. In the semiconductor field, FPT focuses on design, testing and the training of high-quality human resources to meet the growing market demand. In 2022, the group established FPT Semiconductor and launched the first “Make in Vietnam” semiconductor chip. In response to the Government’s directive, FPT has committed to training 10,000 semiconductor professionals by 2030, contributing to the national goal of 50,000 semiconductor engineers. Currently, FPT University has also introduced a semiconductor engineering program and has enrolled nearly 1,000 students.

Mutual support for joint development

Vietnam’s development orientation for the coming period is to attract selective investment toward building a digital economy, green economy, circular economy, and knowledge economy. Accordingly, prioritized projects include high technology, electronics, semiconductors, innovation, renewable energy, new energy (hydrogen), modern financial, trade and services centers, infrastructure construction, and research and development - areas where the U.S. has significant strengths and potential.

Cooperation in these sectors between the two countries is highly complementary. The U.S. has advanced technologies and strong financial capacity while Vietnam can effectively carry out the cooperation based on its abundant labor and a favorable geographic location.

The cooperation of U.S. will help Vietnamese firms integrate into value chains. Semiconductor giants like Intel, Amkor, Marvell, Global Foundries, and the U.S. Semiconductor Industry Association (SIA) are developing a microchip and semiconductor ecosystem and working with the Vietnamese National Innovation Center (NIC) to build training, research and development centers, moving toward chip and semiconductor design. Google and other tech companies are ramping up innovation, AI cooperation, and high-tech workforce training programs in Vietnam.

Additionally, U.S. corporations and investment funds are providing credit and financial support in green sectors like renewable energy and hydrogen and supporting the development of regional and international financial centers.

According to Prime Minister Pham Minh Chinh, to better support businesses, Vietnam has been focusing on developing human resources, formulating incentive policies, promoting digital transformation, and building high-tech parks, innovation hubs and financial centers to attract strategic international investors, including those from the U.S.

However, to achieve successful cooperation, Vietnamese businesses must proactively learn from experience, adopt and apply technologies, enhance governance, and accumulate capital to grow and qualify to join global value chains, thus enabling them to head toward higher-value and more impactful partnerships.

By Quynh Chi, Vietnam Business Forum