This is some content about the results of economic diplomacy, one of the pillars of diplomatic work that Vietnamese embassies and representative agencies abroad are actively promoting to turn strategic partners, comprehensive strategic partners into specific results to serve the development interests of the country.
New ecosystem
Speaking to reporters on the sidelines of the 32nd Diplomatic Conference at the end of December 2023, Vietnamese Ambassador to the US Nguyen Quoc Dung said that after the visit of US President Joe Biden to Vietnam and the upgrading of bilateral relations to a Comprehensive Strategic Partnership, both sides prioritize cooperation in the fields of science and technology, economic development, trade, and investment. This has generated a wave of interest in Vietnam not only from US companies but also from other countries, causing companies that do not have projects in Vietnam to want to explore opportunities, and many companies have been present here and want to expand cooperation. Many businesses have found Vietnamese partners in the semiconductor field, high-tech agriculture, clean energy, and digital transformation.
Prime Minister Pham Minh Chinh and Mr. Jensen Huang, CEO of Nvidia, in a meeting in September 2023 in the US Image: VGP
Recently, Nvidia CEO Jensen Huang visited and committed to establishing a legal entity in Vietnam, making Vietnam the second home of the leading US chip group. “This trip will surely open up more trips. I will return to Vietnam, return to Nvidia’s second homeland,” Mr. Huang said during the visit.
Ambassador Dung believes that there will certainly be more similar interests in the coming time. US businesses in Vietnam usually follow trends, to cooperate or do different things to supplement each other, create a better, more favorable ecosystem, including activities not directly related to investment but only to support, such as training, resorts, recreational activities, etc.
In addition to effectively implementing signed free trade agreements (FTA), in 2023, Vietnam signed an FTA with Israel and is actively negotiating FTAs with other partners; signed more than 70 cooperation agreements of ministries, sectors, and nearly 100 cooperation agreements of localities, hundreds of agreements of businesses…
Nvidia benefits greatly from the boom in artificial intelligence (AI). Revenue from sales of graphics processing units (GPU) and other AI-related products has increased the company’s market capitalization to $1.19 trillion. Forbes estimates Mr. Huang’s total assets at $42.4 billion. If Nvidia’s plan becomes a reality, Vietnam will become a manufacturing base for the company, which may give a boost to Vietnam’s high-tech development trends.
Singapore sees great potential
Singapore has always been the leading investor in Vietnam. During the visit of Singaporean Prime Minister Lee Hsien Loong to Vietnam in August 2023, the two sides broke ground for four new VSIP industrial parks, and Singapore intends to invest in six more industrial parks. There are currently 14 VSIP industrial parks in Vietnam operating very effectively.
Vietnamese Ambassador to Singapore Mai Phuoc Dung said that Singapore is strong in financial and digital economy fields; Vietnam needs to take advantage of the potential, not only Singapore’s but also companies of other countries operating in Singapore. Ambassador Dung said that Vietnam and Singapore are discussing the signing of a carbon credit agreement. “Singapore wants to sign with Vietnam because they evaluate that Vietnam has great potential in carbon credits,” he said.
Offshore wind power is considered one of the breakthrough solutions for energy conversion Photo: Baochinhphu.vn
Singapore is also pursuing a major project to purchase 1.2 MW of offshore wind power in Vietnam. This is a joint venture project between the Vietnam Oil and Gas Technical Service Corporation (PTSC) and Sembcorp in Singapore. During Prime Minister Lee Hsien Loong’s visit, Vietnam granted a survey permit to PTSC to survey the location. In October 2023, Singapore granted conditions to Sembcorp for an agreement, planning to implement the project from 2024-2033, with a total investment of over $10 billion. “This is a very big project, I can’t disclose the details, but Singapore is really looking forward to Vietnam. You said that there is great potential,” Ambassador Dung said. According to him, once completed, this will be the world’s largest project for underground high-voltage cable lines, with a length of 1,000km; the current longest submarine cable route in the world is 700km.
According to Vietnamese Ambassador to Saudi Arabia Dang Xuan Dung, Vietnam can take advantage of financial resources from the public investment funds in the Middle East, such as ADIA, KIA, PIF, QIA… because they are planning to diversify their investment locations, not only focusing on traditional markets such as Europe and the US but also gradually expanding into other regions, including Asia. These funds are tending to diversify their investment portfolios, not only focusing on traditional areas such as bonds, real estate… but also towards new technologies, AI, biotechnology, fintech, and blockchain.
Singapore also has a lot of experience in logistics. Currently, there is a $1.2 billion project of the YCH Group in cooperation with T&T in Vinh Phuc, which has completed phase 1. Ambassador Dung said that Singapore wants to do a similar project in Vinh Long because it sees great logistics potential in Vietnam. Knowing that Vietnam plans to make the North-South high-speed railway project, Singapore’s PSA seaport group wants to cooperate with Vietnam. “They said that when transporting goods, they will need a lot of logistics warehouses, and really want to build logistics warehouses along this railway route,” he shared.
Vietcham comes first
Vietnamese businesses in Thailand, especially the Thai-Vietnamese Business Association, have organized a forum connecting Vietnamese businesses in Laos and Thailand, and then organized a forum to connect Vietnamese businesses in Vietnam, Laos, Thailand, Cambodia, and Myanmar. In November 2023, for the first time, the Forum of Vietnamese Businesses in the 5 countries of Vietnam, Laos, Thailand, Cambodia, and Myanmar was held.
“We hope that this forum will be held annually, creating a good platform for Vietnamese businesses to connect with each other, build a distribution network of Vietnamese goods in countries in the lower Mekong region, and connect to support each other in business,” Vietnamese Ambassador to Thailand Phan Chi Thanh said. He said that in the past two years, the Vietnamese Embassy in Thailand and Vietnamese companies invested and did business in Thailand, establishing the Vietnam Chamber of Commerce in Thailand, which is also the first Vietnam Chamber of Commerce in a foreign country in the world, named Vietcham. Vietcham was granted a license in October 2023 and was launched under the witness of Chairman of the National Assembly Vuong Dinh Hue, on the occasion of his official visit to Thailand in early December 2023.
Ambassador Thanh said that the Vietnam Chamber of Commerce and Industry agreed to develop a project to propose to the Government to develop the Vietcham network worldwide, based on the success of the Vietcham Thailand model.
