On Monday, President Joe Biden wrapped up a two-day visit to Vietnam, during which both nations elevated their diplomatic ties and bolstered economic cooperation.
A day prior, Biden met with the General Secretary of the Communist Party of Vietnam, Nguyễn Phú Trọng, in Hanoi. Following their meeting, Vietnam announced the upgrade of its diplomatic relationship with the U.S. to a "Comprehensive Strategic Partnership." This level of partnership is the highest in Vietnam's diplomatic hierarchy, second only to special statuses held with Cambodia and Laos. With this move, the U.S. now stands alongside China, Russia, India, and South Korea in Vietnam's diplomatic categorization.
Before visiting Vietnam, Biden spent three days in India, prominently supporting the G20 summit hosted by the nation. The Biden administration is keen on forging alliances globally, especially with countries of strategic significance. However, this approach has garnered mixed reactions in the West, with some expressing concerns and criticisms.
Media outlets have described Vietnam and India as "imperfect partners" or "complex allies." They suggest that with ongoing geopolitical challenges, such as the Russia-Ukraine conflict and tensions in the Indo-Pacific and Middle East, Biden seems more inclined to downplay differences and maintain close ties with these nations.
Trade and Economic Ties at the Forefront
For many, the blossoming U.S.-Vietnam relationship was once deemed "unimaginable," especially considering the scars left by the Vietnam War from 1961 to 1975. The U.S. isolated Vietnam for about 20 years post-war, lifting its embargo only in 1994. The two nations established a "Comprehensive Partnership" in 2013. Yet, the remnants of the war, particularly unexploded ordnance causing injuries or disabilities, remain a concern in Vietnam.
Both nations are now looking to turn a new page. Biden acknowledged that U.S.-Vietnam relations have entered a "new phase." They also exchanged artifacts, including lists of soldiers from both countries who remain unaccounted for. Before departing Hanoi, Biden paid respects at a memorial dedicated to his late friend and American "war hero," John McCain, who was captured and held prisoner by the Vietnamese during the war. Additionally, current U.S. Climate Envoy John Kerry is also a Vietnam War veteran. At a state dinner in Vietnam, Biden praised both McCain and Kerry for their pivotal roles in the post-war U.S.-Vietnam relationship over the past 50 years.
Trade and economic ties are driving the relationship between the two countries. In a joint statement released last Sunday, they underscored the importance of economic, trade, and investment cooperation. The White House also announced several bilateral initiatives and business agreements, outlining the U.S.'s vision for Vietnam's key role in the economic sector. These agreements include a semiconductor partnership aimed at enhancing Vietnam's semiconductor ecosystem and supporting U.S. industries, as well as a talent development program focused on semiconductor assembly, testing, and packaging.
Furthermore, the U.S. plans to invest in Vietnam's rare earth minerals, essential for electric vehicles and wind turbines. Vietnam holds the world's second-largest reserves of these minerals, after China.
Biden's Monday itinerary centered on business discussions between the two nations. He attended a meeting with executives from major U.S. and Vietnamese companies, emphasizing deepening cooperation in cloud computing, semiconductors, and artificial intelligence. Notably, executives from Google, Intel, Boeing, and other major U.S. companies were present, along with representatives from Vietnamese firms like electric vehicle manufacturer VinFast and tech company FPT.
U.S. investments in Vietnam span sectors like chips, battery storage systems, and artificial intelligence. The White House announced several U.S. company investments in Vietnamese chip factories. Additionally, Microsoft plans to offer AI-based generative solutions tailored for Vietnam, and Nvidia will collaborate with companies like FPT in the AI domain. In return, Vietnam Airlines placed an order for about 50 aircraft from Boeing, valued at $7.5 billion.
Some Western analysts believe that the U.S. views Vietnam as a key partner in the Indo-Pacific region, potentially making it one of the most crucial collaborators in the U.S.'s efforts to create "resilient supply chains."
However, Biden insisted that his visit to Vietnam aimed to strengthen ties with Hanoi and denied any considerations related to China. He stated during a press conference last Sunday, "I don't want to contain China."
Imperfect Allies
Despite the strengthening ties, Vietnam and other new partners like India haven't met the U.S.'s ideal "perfect friend" criteria. For instance, their "poor human rights records" have been a point of contention.
Specifically, in Vietnam, while relations are improving, Biden's visit was seen as "disappointing" by U.S. human rights advocates. They noted that in a White House statement spanning over 2,600 words, only 112 words pertained to human rights. They highlighted Biden's previous emphasis on prioritizing human rights upon taking office in 2021.
In Vietnam, when asked by the media if he prioritized strategic interests over human rights, Biden responded that he had raised the issue with everyone he met. U.S. Indo-Pacific Coordinator Kurt Campbell mentioned that Biden prefers to address such matters privately. Given the challenges the U.S. faces, Campbell emphasized the need for respectful dialogue and a "degree of humility."
Additionally, Vietnam's close ties with Russia have been a sore point for the U.S. Reports emerged a day before Biden's visit to Hanoi that Vietnam was negotiating a new weapons supply deal with Russia, potentially triggering U.S. sanctions, adding pressure to Biden's visit.
In essence, these topics dominated Biden's five-day Asian tour. Regarding concerns about India's human rights record, Biden clarified during a G20 press conference that he had discussed the importance of respecting human rights, civil society, and press freedom with Indian Prime Minister Narendra Modi.
Moreover, when Biden warmly shook hands with Saudi Crown Prince Mohammed bin Salman during the G20 summit in India, it reminded many of their awkward fist bump from a previous meeting. The murder of journalist Jamal Khashoggi remains a sticking point in Biden's relationship with Saudi Arabia. Less than a year ago, Biden warned Saudi Arabia of "consequences" for aiding Russia by cutting oil production and driving up crude oil prices.
In reality, disagreements between Saudi Arabia and the U.S. over oil production remain unresolved. Just last week, Saudi Arabia and Russia announced an agreement to extend their voluntary production cuts until the end of the year, reducing global oil supply by 1.3 million barrels and driving up energy prices. However, the White House seems to have ceased pressuring on this issue, at least publicly.
