President Joe Biden’s recent trip to Vietnam, accompanied by top leaders from major US technology firms like Google, Intel, Boeing, and GlobalFoundries, was aimed at finding new partners to bolster the production of critical American technology. The unspoken motivation behind this quest is to decrease reliance on China, positioning Vietnam as a linchpin in the US’s strategy to secure alternatives for vital raw materials and manufacturing skills, especially in semiconductor production.

As tensions between the US and China heighten, the Biden administration has amplified efforts to diversify its supply chains, particularly in crucial tech components. Vietnam has emerged as a potential ally in this strategy, but experts caution that Vietnam’s capacity in tech manufacturing cannot swiftly replace China’s scale and expertise.

The courting of Vietnam as a tech ally began with Treasury Secretary Janet Yellen’s visit in July, which led to an upgraded diplomatic relationship between the two countries. Biden further solidified this alliance by pledging $2 million to aid Vietnam in developing its semiconductor workforce.

Following Biden’s trip, Vietnam’s Prime Minister Phạm Minh Chính announced plans for a $1.6 billion chip testing and assembly factory near Hanoi, emphasizing the country’s ambition to expand its semiconductor workforce significantly by 2030. However, practical concerns linger about the extent of Vietnam’s role in the US technology supply chain and the realistic steps to amplify this partnership. Both nations acknowledge the challenge of diversifying away from China, understanding that complete disengagement from Chinese manufacturing is not feasible.

While hopes are high for Vietnam’s involvement, the complex process of reducing dependency on China in the tech supply chain demands measured expectations and a nuanced approach from both the US and Vietnam.