In a speech delivered in Hanoi on Friday, U.S. Treasury Secretary Janet Yellen lauded Vietnam’s critical partnership with the United States in promoting green energy sources and establishing more robust supply chains. Yellen’s visit to Vietnam is part of the U.S.’s efforts to strengthen ties with reliable allies and reduce reliance on Chinese supply chains. The country has seen significant trade growth and increased investments, especially in the semiconductor sector. Yellen also highlighted Washington’s commitment to supporting developing economies and addressing the climate crisis.
Increasing Trade and Investments
Yellen acknowledged the remarkable growth in trade between the United States and Vietnam, which reached a record rate last year, following an annual increase of approximately 25% over the past two decades. She praised significant investments by American businesses, like Arizona-based Amkor and Intel, which operates its largest assembly and testing plant in Saigon. The Treasury Secretary emphasized Vietnam’s vital role as a key node in the global semiconductor supply chain.
Efforts to Strengthen Ties with Vietnam
The U.S. aims to strengthen its formal ties with Vietnam as part of its strategy to reduce dependence on Chinese supply chains and expand domestic manufacturing. However, some observers believe that Vietnam has encountered resistance due to concerns that China may perceive the action as unfriendly. The two nations established regular ties twenty years after the Vietnam War’s conclusion in 1995 and later agreed to a bilateral trade pact.
Emphasis on Inclusive Cooperation
Yellen’s speech underscored that the U.S.’s approach to strengthening alliances, known as “friendshoring,” is not limited to a select group of countries but is open and welcoming to developed, emerging, and developing nations alike. The U.S. is actively working to improve relations with developing and emerging economies, particularly through the Group of Seven’s commitment to mobilize $600 billion in infrastructure investments, seen as a counterweight to China’s Belt and Road Initiative.
In her speech, Janet Yellen expressed the United States’ determination to collaborate with Vietnam in promoting green initiatives, addressing the climate crisis, and supporting the country’s Just Energy Transition Partnership. This partnership aims to secure $15 billion in public and private funds to assist Vietnam in achieving a net-zero emissions economy by 2050. As both nations look forward to a strengthened alliance, Yellen emphasized the importance of continued cooperation and the need to assess project opportunities with multilateral development banks to drive these initiatives forward.
