Biden to visit Vietnam to strengthen ties amidst regional challenges

The United States and Vietnam plan to elevate their relations as US President Joe Biden visits the country, with officials saying the focus of the talks will be semiconductors and critical minerals.

After a Group of 20 summit in India, Biden is to arrive at Vietnam's Presidential Palace on Sunday afternoon for a formal welcome from Communist Party General Secretary Nguyen Phu Trong, Vietnam's most powerful leader, then go to party headquarters, where the two will meet and give public remarks.

The US has been pushing for the upgrade for months as it sees the Southeast Asian manufacturing dynamo as a key country in its strategy to secure global supply chains from China-related risks.

The overhaul may be shadowed, however, by a New York Times report on Saturday that Vietnam was in talks with Russia over a new arms supply deal that could trigger US sanctions.

The report cites a March Vietnamese finance ministry document laying out plans for Hanoi to pay to modernise its forces through a Vietnamese-Russian oil venture in Siberia.

Hanoi is in similar talks with multiple arms suppliers, including the US. It is unclear how far those talks have evolved. In recent weeks, Vietnam has engaged in several high-level defence meetings with top Russian officials.

Semiconductors, rare earths, and growing trade ties in focus

The visit comes as bilateral trade and investment ties are growing and a long-simmering territorial dispute between Vietnam and China heats up in the South China Sea.

Highlighting Vietnam's growing importance as a "friend-shoring" destination for US technology companies, executives from Google, Intel, Amkor, Marvell, GlobalFoundries and Boeing are expected to meet on Monday with Vietnamese tech executives and Secretary of State Antony Blinken in Hanoi.

Semiconductors are the centrepiece of an action plan to be adopted during Biden's visit, adding concrete deliverables to the diplomatic upgrade, a US official said.

More support to train skilled workers is also expected, as Vietnam faces a major shortage of engineers in the chips sector.

Another key issue is strengthening supply chains of critical minerals, especially rare earths, of which Vietnam has the world's largest deposits after China, according to US estimates, officials said.

Trade may also be discussed, as Vietnam's trade surplus with the US trails only those of China and Mexico.

Human rights remain a controversial issue, with US officials regularly criticising Hanoi for jailing activists and limiting freedom of expression. Vietnam may show goodwill, with diplomats suggesting activists could be freed.