Strengthening US-Vietnam relations: Focus on semiconductors and challenges

US and Vietnam strengthen ties

The United States and Vietnam are set to enhance their relationship during President Joe Biden's visit to the country. The talks between the two nations will center on semiconductors and critical minerals, signifying a crucial step in their cooperation.

For several months, the US has been advocating for an upgraded partnership with Vietnam. This Southeast Asian manufacturing powerhouse is seen as a pivotal element in the US strategy to secure global supply chains, minimizing risks associated with China.

Possible shadow on relations

However, a report emerged on Saturday indicating that Vietnam is in discussions with Russia regarding a potential arms supply agreement, a move that could potentially trigger sanctions from the US. The New York Times referenced a Vietnamese finance ministry document from March outlining plans for Hanoi to invest in the modernization of its military forces through a Vietnamese-Russian oil venture in Siberia.

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Source has seen documents describing talks for a credit facility from Russia to Vietnam for the purchase of heavy weaponry, including anti-ship missiles, antisubmarine aircraft, helicopters, antiaircraft missile systems, and fighter jets, the authenticity of these documents remains unverified. Despite requests for comment, Vietnam's foreign ministry spokesperson did not respond to inquiries regarding these documents.

Diversifying away from Russian military supplies

Vietnam is concurrently engaged in discussions with various arms suppliers, including the United States. In recent weeks, Vietnam has held high-level defense meetings with top Russian officials.The upgraded partnership between the US and Vietnam will encompass security considerations, according to Jon Finer, the US principal deputy national security adviser. Although no arms deals were announced at this stage, Finer emphasized that the US and its partners could assist Vietnam in diversifying away from Russian military supplies—an offer Vietnam appears receptive to.

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This diversification could reduce Vietnam's military reliance on Moscow, a relationship that seems to be causing increasing discomfort, as stated by Finer. It underscores the commitment to strengthening ties between the US and Vietnam while addressing complex geopolitical challenges.