A US official visiting Vietnam said on Friday that American semiconductor firms were looking to invest $8 billion in the country.
Those investments were, however, contingent on Vietnam’s commitment to renewable energy, he added.
“Right now, as we speak, there are 15 semiconductor companies who have told us they are prepared to invest as much as $8 billion in Vietnam in this industry,” Jose Fernandez, undersecretary for economic growth, energy and the environment at the State Department, he told a press briefing in Hanoi.
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He added, however, that the companies stressed they faced constraints on investing in Vietnam. In particular, they needed the country to develop its regulatory regime for renewable energy.
“They made commitments to shareholders and customers they will use only renewable energy,” he said.
The companies are waiting for permits and development of the regulatory system in Vietnam before they can go ahead with their investment plans, he added.
Earlier, The Vietnam Economic Times had reported that the 15 companies were specifically looking to invest in thew country’s clean energy.
The report also said that Fernandez told Vietnamese Prime Minister Pham Minh Chinh that the US believed it “necessary to tap Vietnam’s huge potential in semiconductors.”
Fernandez also reiterated US President Joe Biden’s pledge last year to work with Vietnam on developing its chip industry and critical minerals sector.
Glad to be in Hanoi to meet with Prime Minister Phạm Minh Chính to discuss great progress under our Comprehensive Strategic Partnership in areas like semiconductors, supply chains, & energy. We look forward to continuing to expand our ties with Vietnam as a key economic partner. pic.twitter.com/9AXZg1CZVy
— Under Secretary Jose W. Fernandez (@State_E) January 26, 2024
- Reuters, with additional inputs from Vishakha Saxena
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