Vietnam can become partner in US friendshoring strategy: Treasury Secretary Yellen

The United States sees Vietnam as a country that could be part of its friendshoring strategy to diversify supply, said U.S. Treasury Secretary Janet Yellen while addressing a Thursday press conference in Atlanta, Georgia.

The official made the comment in response to queries about Russian President Vladimir Putin’s visit to Vietnam on the same day. This was Putin's fifth visit to the Southeast Asian country.

Vietnam and the U.S. have deepened their economic cooperation and upgraded ties to a comprehensive strategic partnership last year during U.S. President Joe Biden’s visit to Vietnam, she added.

Vietnam has a policy and strategy of working collaboratively with different countries and “it is not a condition of our partnership that they sever their ties to Russia or to China,” Yellen said.

Focusing on Vietnam, Yellen highlighted that “we are concerned about emissions and lowering emissions and addressing greenhouse gases in Vietnam.” The U.S. is in the Just Energy Transition Partnership (JETP) to work collaboratively to lower emissions, the official added.

Vietnam has announced lowering its emissions as a key goal and the U.S. is working to help provide financing for that, Yellen emphasized.

“Friendshoring” refers to the rerouting of supply chains to countries perceived as politically and economically safe or low-risk, to avoid disruption to the flow of business and supply chains. The Vietnam-U.S. comprehensive strategic partnership cements Vietnam’s position as a member of the “friendshoring” cohort of countries favored by Washington, leading asset management VinaCapital said.

In July 2023, during her two-day visit to Vietnam, Janet Yellen affirmed it was a priority for the U.S. to deepen its economic and security ties with Vietnam in the months and years to come. "The United States considers Vietnam a key partner in advancing a free and open Indo-Pacific," Yellen said at a meeting with Vietnamese Prime Minister Pham Minh Chinh.

Yellen said that the U.S., along with international partners, was committed to mobilizing over $15 billion to support Vietnam’s adoption of renewable energy as a part of the JETP. The funds were promised by the G7 economies to help Vietnam phase out its reliance on fossil fuels.