U.S. & Vietnam forge billion-dollar AI partnership: Joe Biden aims to boost emerging technologies

In a groundbreaking development, the United States and Vietnam have unveiled a series of significant business agreements aimed at fostering cooperation in emerging technologies, with a strong focus on artificial intelligence (AI). The joint press conference held on September 11, 2023, witnessed the announcement of deals worth billions of dollars, reflecting a major milestone in the relationship between the two nations.

President Joe Biden emphasised that this collaboration marks a formal "upgrade" in the ties between the U.S. and Vietnam, highlighting key sectors including cloud computing, semiconductors, and AI. Notably, Biden clarified that the partnership is not designed to "contain China" but to create a "stable base" in the region, emphasising the importance of fostering a resilient semiconductor supply chain.

The event also drew prominent industry leaders, including Google, Intel, Boeing, Amkor, Microsoft, and Nvidia, underlining the significance of this collaboration in the tech sector.

Vietnam's ascendance in the global economy

Vietnam's remarkable economic growth has placed it among the world's fastest-growing economies, currently ranking 34th worldwide with a GDP of $450 billion. The nation's transition from centralized economic control to a more open market has further solidified the U.S. as one of its largest export markets.

The AI-focused agreement between the two countries has elevated the United States two levels up in Vietnam's bilateral hierarchy, previously occupied by China, Russia, India, and South Korea. Historically, U.S.-Vietnam relations faced challenges, partly due to concerns about upsetting China and the legacy of a tumultuous relationship stemming from the Vietnam War.

Global AI competition intensifies

This partnership comes against the backdrop of global efforts to develop and deploy high-level AI systems, with a particular focus on the competition between the U.S. and China. In October 2022, the Biden administration imposed an export ban on the latest semiconductor chips to China, a move under consideration for further tightening. Meanwhile, China has recently introduced new AI regulations, leading to the release of over 70 AI models with over a billion parameters.

The collaborative effort between the United States and Vietnam not only enhances their technological capabilities but also underscores the increasing importance of AI in shaping the future of global industries and geopolitics. As both nations deepen their commitment to innovation, the world watches closely as the race for AI supremacy intensifies.