US 'friendshoring' chips push hits a snag as 'Vietnam can't decouple ...
US President Joe Biden announced on Sunday that the US and Vietnam are "deepening cooperation" to expand their economic partnership and promote trade and investment between the two nations. The US hopes to reduce the semiconductor sector's exposure to China-related risks, but Chinese officials urge the US to respect the desire for stability, cooperation, and development in Asian countries. However, critics argue that Vietnam's economic dependence on China and its limited manufacturing capabilities make it challenging to decouple from China's supply chain. The US plans to invest in Vietnam's semiconductor industry but acknowledges the need to address the shortage of tech talent in Vietnam.
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Frequently Asked Questions
Q: What is "friendshoring"?
A: "Friendshoring" refers to the practice of relocating or outsourcing manufacturing processes to countries that have a close political or economic relationship with the company or country initiating the move.
Q: What is the US "friendshoring" chips push?
A: The US "friendshoring" chips push refers to efforts made by the United States to move or encourage the outsourcing of chip manufacturing processes to countries that have a friendly or cooperative relationship with the US.
Q: Why is the US "friendshoring" chips push hitting a snag with Vietnam?
A: The US "friendshoring" chips push is facing challenges with Vietnam because Vietnam is unable to fully decouple its manufacturing processes from China, which makes it difficult for Vietnam to become a viable alternative for chip production.
Q: What does "Vietnam can't decouple" mean?
A: "Vietnam can't decouple" means that Vietnam is facing difficulties in completely separating or disconnecting its manufacturing processes from China. This presents obstacles in Vietnam's ability to serve as a standalone alternative for chip production and impacts the success of the US "friendshoring" chips push.
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