(Hanoi, Vietnam) – United States Treasury Secretary Janet Yellen started her second day in Hanoi with a select roundtable discussion with US-ASEAN Business Council (US-ABC) member companies on July 21, 2023. Moderated by the Council’s Deputy Regional Managing Director Vu Tu Thanh, senior executives from 10 companies with significant manufacturing, sourcing, and sales operations in Vietnam shared their view of the opportunities and challenges they are facing in this market. The Secretary appreciated the frank and substantive discussion and offered her optimistic view of trade relations with Vietnam. She also reiterated strong support for American companies creating tens of thousands of jobs in the United States as they reorganize their global supply chain in response to the Biden Administration’s re-shoring and friend-shoring efforts. The Secretary joined United States Ambassador to Vietnam Marc Knapper in thanking the US-ABC for hosting her and the role the Council and its member companies play in fostering bilateral trade relations.
On this trip, which is her second since 2017 when she was Chair of the Federal Reserve, Secretary Yellen also met with Prime Minister Pham Minh Chinh, Deputy Prime Minister Le Minh Khai, State Bank Governor Nguyen Thi Hong and Minister of Finance Ho Duc Phoc, among others.
In a public speech delivered right after her meeting with the US-ABC’s delegation, Secretary Yellen highlighted that Vietnam had become a critical node in the global semiconductor supply chain, noting major investments made by U.S. companies in Vietnam, including Intel and Arizona-based Amkor.
Secretary Yellen also noted that the U.S. has dedicated a new $500 million fund for international semiconductor and telecom projects under the CHIPS Act, which could help countries in the Indo-Pacific develop their own diverse and resilient semiconductor supply chain.
More broadly, Vietnam and the United States have worked together to bolster resilient supply chains with other countries. The Treasury Secretary cited a proposed agreement announced by IPEF’s member countries two months ago to strengthen supply chain resilience.
However, she underscored that Washington's "friendshoring" drive was not meant for "an exclusive club of countries. It is open and inclusive of advanced economies, emerging markets, and developing countries alike."
She said Washington was looking to strengthen ties with emerging markets and developing countries, including through the Group of Seven's pledge to mobilize $600 billion in infrastructure investments.
The United States is also working to help countries address the worsening climate crisis, Yellen said, citing U.S. support for Vietnam's Just Energy Transition Partnership that is working to mobilize $15 billion in public and private funds to help Vietnam transition to a net-zero emissions economy by 2050
"Now, it is vital to intensify our cooperation to build momentum for these efforts in Vietnam, evaluate project opportunities with the multilateral development banks, and deliver a Resource Mobilization Plan that provides a roadmap for implementation," she said.