Upgraded US ties could kick off Vietnamese startups in new technologies: VinaCapital
The recent upgrade of Vietnam-US ties to that of a comprehensive strategic partnership is likely to encourage Vietnamese startups in new technologies including IT, semiconductor and Artificial Intelligence, says VinaCapital.
The leading Vietnam-focused investment fund company says in a note that the startups would be among numerous benefits delivered to businesses and investors in Vietnam by the upgrade in ties.
The benefits could come in the form of increased market access, lower tariffs and new opportunities to partner with U.S. corporates, VinaCapital says, adding that these would become clearer in the medium and long terms.
Under the Corporate Strategic Partnership, the U.S. has committed to support the development of Vietnam’s semiconductor ecosystem from the ground up, including regulatory framework, workforce development, and infrastructure building.
Executives of top U.S. semiconductor and technology companies including Google, Intel, Amkor, Marvell, and Global Foundries were part of President Biden’s entourage during his recent visit to Hanoi. Several of them have already invested in Vietnam, and others have announced plans to do so.
“The expansion of the chip supply chain could continue bringing billions of dollars of new private and public investment to Vietnam’s semiconductor industry” although Vietnam has to deal with a shortage of engineers if it is to become a chip powerhouse, VinaCapital analysts say in the note.
Several domestic companies are already riding the wave of opportunity. FPT, a major player in Vietnam’s IT sector, appears poised to capitalize on recent developments. It is set to inaugurate a semiconductor department within the FPT University.
Beyond semiconductors, there are a range of newly announced initiatives in logistics and energy, education, science, healthcare, agriculture, and finance.
“Increasing investment from U.S. companies would certainly be welcome, and as with other FDI, would bring new jobs at good wages, which futher drives our longtime theme of investing in companies that are participating in and benefiting from increasing domestic consumption and economic growth,” the VinaCapital note says.
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