US, Vietnam upgrade ties as Biden pays state visit to Hanoi

The US and Vietnam upgraded their bilateral relations on Sunday to a Comprehensive Strategic Partnership and signed an agreement on semiconductor supply chains.

The developments came after US President Joe Biden arrived in Hanoi for a two-day state visit meant to deepen bilateral cooperation.

He flew to the Vietnamese capital after attending a two-day G-20 leaders' summit in New Delhi, India.

Biden met with the General Secretary of the ruling Communist Party, Nguyen Phu Trong, and other leaders to explore opportunities to promote the growth of the Vietnamese economy, expand people-to-people ties, and combat climate change.

The US and Vietnam have increasingly close trade ties, and the visit is being keenly observed as Washington is strengthening its presence in the wider Asia-Pacific region to counter China’s expanding economic and military influence.

The two nations re-established formal diplomatic relations in 1995, 20 years after the end of the Vietnam War.

The US and Vietnam upgraded their bilateral ties to a "Comprehensive Strategic Partnership...as both countries work together to achieve our shared goals of peace, prosperity, and sustainable development," according to a statement released by the White House.

The statement added that Washington and Hanoi announced a new partnership in semiconductor supply chains.

"A newly-signed Memorandum of Cooperation on Semiconductor Supply Chains, Workforce and Ecosystem Development will formalize this bilateral partnership to expand the capacity of the semiconductor ecosystem in Vietnam, in support of US industry. Under the International Technology Security and Innovation Fund (ITSI Fund), created by the CHIPS Act of 2022, the United States will partner with Vietnam to further develop Vietnam’s current semiconductor ecosystem, regulatory framework, and workforce and infrastructure needs," the statement added.

Washington and Hanoi signed a Comprehensive Partnership agreement in 2013.

Last year, trade between the two countries reached over $123.86 billion, an 11% increase from the previous year.