Boosting the U.S.-Vietnam ties will greatly benefit the two former foes. However, doing so will also negatively affect some countries, as well as companies.
Russia, China, and Airbus are just among the losers in the U.S.-Vietnam diplomatic relations upgrade.
Who are the Losers in Boosted US-Vietnam Ties?
U.S. President Joe Biden's Hanoi visit is the American leader's attempt to pull Vietnam—one of China's neighbors—closer to the United States.
POTUS explained that his Vietnam visit aims to deepen the cooperation between the two countries in semiconductors, cloud computing, and artificial intelligence.
He added that Vietnam is very important to the U.S. because of its critical mineral supplies. On the other hand, other countries will not be so happy about the U.S.-Vietnam diplomatic ties upgrade.
This is because it could have negative effects on their economy. Now, here are the nations and companies that are considered to be losers in the boosted U.S.-Vietnam ties, as reported by Reuters:
- Russia: Vietnam's warfare weapons reliance on Russia could be reduced.
- China: China's business deals in Vietnam, especially in the semiconductors field, could suffer.
- Airbus: Vietnam Airlines purchased 50 737 MAX jets from Airbus competitor, Boeing.
- SIEMENS and AES: Germany's SIEMENS and U.S. energy firm AES, Vietnam's battery storage systems provider, could also suffer since the U.S. government announced a partnership with Honeywell and AMI to launch Vietnam's first-every battery energy storage system.
- India and Malaysia: Since the U.S. promised to enhance the chip and artificial intelligence industry of Vietnam, it could negatively affect Malaysia and India as they are the country's top rivals when it comes to AI and semiconductors.
Other Things to Know About Biden's Vietnam Visit
Recently, The Diplomat reported that Joe Biden's Vietnam visit wasn't only for improving the semiconductor cooperation of the U.S. and the former foe.
It also aims to improve the ties of American and Vietnamese residents.
The U.S. and Vietnam will do this through workforce development programs, education exchanges, better climate change efforts, as well as increasing peace, stability, and prosperity in the Asian country.
The recent Hanoi trip of Biden is a big deal for the U.S. since it can drastically improve the complicated history of the United States with Hanoi.
If you want to learn more about the importance of the POTUS' Vietnam visit, you can click this link.
