Billion-dollar deals during the US President's visit to Vietnam

 

Many Vietnamese businesses have reached cooperation agreements and investment deals worth billions of dollars with large American corporations during President Joe Biden's visit.

US President Joe Biden's state visit to Vietnam on September 10-11 is an opportunity for the two countries to promote relations in the fields of investment, innovation, chip technology, semiconductors, transportation and sustainable green transformation of the economy.

On this occasion, many deals and investment cooperation initiatives were signed by Vietnamese and American businesses, aiming to realize and promote the comprehensive strategic partnership. For example, a memorandum of understanding worth 10 billion USD in the field of aviation services between Vietnam Airlines and Boeing to buy 50 aircraft of model 737 Max. These aircraft are expected to be delivered in the period 2027 - 2030.




Vietjet Airlines also signed an aircraft sponsorship agreement worth 0.55 billion USD with Carlyle - a large American financial group. Accordingly, Carlyle Aviation Partners (part of the Carlyle Group) will provide finance for the 737 Max aircraft series under the order of 200 aircraft from Vietjet and Boeing.

In addition, Vietjet and Boeing agreed to hand over the first aircraft following the order for 200 aircraft of model B737 Max signed in 2016 during President Barack Obama's visit to Vietnam. This order worth more than 25 billion USD will be implemented over the next 5 years, with the first 12 aircraft delivered in 2024.

In the field of finance and banking, on September 10, VP Bank announced that it had received a bilateral loan of 300 million USD with a 7-year term granted by DFC Group to strengthen its capital foundation and promote sustainable financial activities. A similar loan of 100 million USD was also granted by DFC to TP Bank.

These loans will help the two banks above continue their sustainable financial operations, including supporting SMEs and small-medium enterprises owned by women, and shifting their investment portfolios to activities to combat climate change and low carbon emission technology.

Not only receiving capital flows from the US, Vietnamese businesses also increased investment in US market. FPT Chairman Truong Gia Binh on September 11 said he plans to invest 100 million USD and nearly 1,000 human resources in the US by the end of this year. He also proposed the US government to nurture the semiconductor ecosystem in Vietnam. With continuous investments, FPT expects to create more than 3,000 jobs by 2028 and achieve revenue of 1 billion USD from the US market by 2030.

Along with the investment plan, the group also announced a comprehensive strategic cooperation with Landing AI - a company in the field of machine vision and artificial intelligence in Silicon Valley (USA) to accelerate the process of bringing AI into training at FPT Education system.

Previously, in the Joint Declaration on upgrading Vietnam - US relations to a comprehensive strategic partnership, General Secretary Nguyen Phu Trong and President Joe Biden agreed to create favorable conditions and further open the market for each country's goods and services, and work together to resolve issues such as market access barriers through the Framework Agreement on Trade and Investment.

The two leaders support continuing to strengthen the non-discriminatory and rules-based multilateral trading system, in which the World Trade Organization (WTO) plays a core role.

The United States is committed to increasing support for Vietnam in manufacturing, developing high-quality physical and digital infrastructure, equitable energy transition, sustainable and smart agriculture, as well as supporting Vietnam's participation in deeply and sustainably into regional and global supply chains. The country also commits to increasing support for Vietnam in training and developing a high-tech workforce.

The two countries announced the launch of human resource development initiatives in the semiconductor field, in which the US government will provide an initial seeding grant worth 2 million USD, along with support from the Vietnamese Government and private sector in the future.

Vietnam - US relations were normalized in July 1995 and upgraded to a comprehensive partnership in July 2013. Vietnam-US trade reached nearly 124 billion USD last year, increasing 275 times in 27 years.

The US is Vietnam's largest export market and second largest trading partner. In contrast, Vietnam is the 7th largest trading partner of the US in the world, the largest in ASEAN.

 

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