The U.S. is helping Vietnam build a chip industry designed to replace that of China.
On February 20, President Donald Trump said he would remove Vietnam from a strategic export control list that blocks the country from buying advanced technology from U.S. companies. Trump also reaffirmed Washington’s commitment to a “strong, independent, self-reliant, and prosperous” Vietnam.
Vietnam has sat on the restricted lists — along with China, Russia, and North Korea — since the Cold War. The removal would clear the way for Vietnam to move beyond assembling and packaging chips to manufacturing them, repositioning it as a chip industry partner for the U.S.
“For the semiconductor supply chain, this decision signals a transition for Vietnam from a back-end assembly hub to an upstream manufacturing and design partner,” Sujai Shivakumar, director of the Renewing American Innovation project at the Center for Strategic and International Studies, a Washington-based think tank, told Rest of World. “The U.S. is clearing the path for Hanoi to acquire high-end American tools and software essential for advanced chipmaking.”
The Joe Biden administration elevated Vietnam to a comprehensive strategic partnership in 2023. Trump has continued where Biden left off.
