IRIA News

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French President Emmanuel Macron sealed deals worth over $10 billion with Vietnam, aiming to strengthen bilateral relations and expand French influence in the Indo-Pacific region.

The agreements, signed during Macron’s first formal state visit to Vietnam, span over aerospace, defense, transportation, and healthcare, reinforcing France’s status as a key economic and diplomatic partner for the export-dependent nation.

The trip marked the first by a French president to Vietnam in nearly a decade, coming at a time of heightened global trade uncertainty. U.S. President Donald Trump’s threat last week to impose 50% tariffs on European Union goods, initially scheduled for June 1, has now been delayed until July 9, sparking concern across European capitals.

Meanwhile, Vietnam also finds itself navigating pressures from Washington, which has urged Hanoi to purchase more American goods to ease its substantial trade surplus with the United States.

In this climate, France’s deepened engagement with Vietnam is not only timely, it is also very strategic. “France signed 9 billion euros ($10.25 billion) worth of contracts in Vietnam during his visit,” Macron told reporters in a press briefing.

Aviation cooperation and infrastructure development

The bulk of the investment stems from a major aviation agreement between France’s Airbus and Vietnam’s budget airline VietJet. The deal involves the purchase of 20 A330neo wide-body aircraft, supplementing a similar agreement signed last year for another 20 jets. While neither company disclosed the precise value or delivery schedule of the latest tranche, industry estimates suggest the deal could be worth well over $2 billion.

The major deal comes amid intense lobbying from European officials who have been urging Vietnam to balance its growing trade with the U.S. with continued cooperation with European partners.

France’s Airbus remains the dominant supplier of aircraft to Vietnamese airlines, but there are signs that Hanoi is hedging its bets. Vietnamese officials have indicated plans to buy up to 250 Boeing aircraft, split between Vietnam Airlines and VietJet, in an apparent gesture to ease U.S. trade concerns.

Nuclear and renewable energy cooperation

France’s investment push in Vietnam also extends deeply into the energy sector, with state utility services provider Electricité de France (EDF) playing a pivotal role. EDF expressed strong interest in collaborating with Vietnam on projects aligned with the country’s energy development roadmap, especially in the fields of nuclear power and renewables.

During a meeting in Hanoi, EDF Chairman and CEO Bernard Fontana emphasized that “EVN is an important partner of EDF in Asia,” and reiterated his desire for EDF to “continue accompanying Vietnam in its energy transition.”

His Vietnamese counterpart, Dang Hoang An, chairman of the state-run Electricity of Vietnam (EVN), welcomed the collaboration, stating that he appreciates EDF’s contributions on technology and cooperation models.

“EVN leaders are ready to cooperate with EDF in researching and proposing cooperation options in line with Vietnam’s energy transition roadmap, promoting initiatives that ensure efficiency, sustainability, and conformity with the group’s development strategy,” he said.

Both sides agreed to maintain regular exchanges and work toward a cooperation roadmap leveraging their respective strengths.

EDF is already a key investor in the 2,250 MW Son My I LNG-fueled power plant in Binh Thuan province, alongside Japan’s Sojitz and Kyushu Electric Power, and Vietnam’s Pacific Corporation. The $2.2 billion project, approved in principle by the Ministry of Trade and Industry in 2021 under a build-operate-transfer (BOT) model, is currently undergoing feasibility assessment and aims to be operational by 2028.

Vietnam, meanwhile, is reviving its nuclear ambitions. In February 2025, Prime Minister Pham Minh Chinh tasked state-owned EVN and PVN with overseeing the development of the Ninh Thuan 1 and 2 nuclear power plants. The government aims for these projects to be completed by 2030 or 2031 at the latest, and has welcomed expressions of interest from France, Japan, South Korea, and Russia.

Space, vaccines, and ports

Another major component of the agreements involves Airbus Defense and Space, which signed a declaration of intent with Vietnamese authorities regarding the replacement of Vietnam’s earth-observation satellite. Built by Airbus’ predecessor EADS and launched in 2013, the satellite is nearing the end of its operational life. The new pact will explore a future satellite program, marking continued French involvement in Vietnam’s space ambitions.

The health sector also saw a major boost. French pharmaceutical giant Sanofi will expand its vaccine operations in Vietnam as part of the agreement package, responding to rising demand in the region for pharmaceutical innovation and public health preparedness. Details on the size of the investment were not immediately available, but Sanofi’s presence is expected to contribute to Vietnam’s domestic healthcare capabilities and pandemic resilience.

Meanwhile, French shipping company CMA CGM signed a $600 million joint investment deal with Vietnam’s Saigon Newport to develop a deepwater container terminal in northern Vietnam by 2028. The infrastructure project underscores France’s commitment to enhancing Vietnam’s logistical connectivity and global trade capacity, critical components of Hanoi’s long-term economic strategy.

A strengthened strategic partnership

Macron’s visit was not solely about commerce, it also served to deepen defense cooperation between the two nations, a sensitive and strategic domain given Vietnam’s longstanding maritime disputes with China in the South China Sea.

“The partnership with Vietnam entails a reinforced defense cooperation,” Macron stated, citing multiple projects involving space and defense technologies.

Vietnamese President Luong Cuong added that the enhanced defense ties would include “sharing of information on strategic matters” and expanded cooperation in cybersecurity, the defense industry, and counterterrorism. The agreement signifies a notable shift, given Vietnam’s traditionally cautious approach to defense alliances.

France’s support of freedom of navigation, echoing the EU’s broader Indo-Pacific strategy, is particularly significant for Vietnam, which has frequently clashed with Beijing over contested boundaries in the South China Sea.

From colonial past to strategic future

France’s renewed interest in Vietnam is steeped in complex history. Vietnam was a French colony for nearly 70 years before gaining independence in 1954 following the defeat of French forces at Dien Bien Phu. While memories of colonial rule linger, ties have steadily improved in recent decades, with bilateral relations upgraded last year to Vietnam’s highest diplomatic classification.

Macron’s Southeast Asia tour, which continues to Indonesia and Singapore, is aimed at expanding France’s footprint in a region increasingly seen as the fulcrum of 21st-century geopolitics. The Indo-Pacific is becoming a competitive arena not only for China and the United States but also for middle powers like France seeking to project influence.

On the other hand, Vietnam’s balancing act to maintain relations with the United States, China, and now Europe demonstrates its growing importance in global supply chains and diplomatic strategies. With a population nearing 100 million, a youthful workforce, and a central position in Southeast Asia, Vietnam is rapidly transforming into a regional economic hub.

However, the specter of U.S. tariffs has raised concerns in Hanoi about over-dependence on American markets. By inking substantial deals with France and diversifying its investment partners, Vietnam is signaling its desire to remain open, multilateral, and resilient.

European firms see Vietnam as a gateway to ASEAN markets, particularly considering the EU-Vietnam Free Trade Agreement (EVFTA), which came into effect in 2020. The EVFTA eliminates nearly all tariffs between the two sides and offers European investors preferential access to one of Asia’s fastest-growing economies.

What is next for France in Southeast Asia?

Despite a light-hearted viral video of First Lady Brigitte Macron appearing to playfully push the President’s face as they disembarked their plane in Hanoi, an incident dismissed by the Élysée Palace as “a moment of closeness,” Macron’s presence in Southeast Asia has been anything but trivial.

It marks a pivotal step in France’s broader Indo-Pacific strategy and reaffirms Vietnam’s centrality in the geopolitical and economic recalibrations of the 21st century. As Macron wraps up his visit, the message is clear: France is back in Southeast Asia, and it’s investing not just money, but influence.