Hanoi, May 27 – France and Vietnam signed a landmark series of agreements worth over $10 billion on Monday, marking a significant deepening of ties between the two nations. The pacts, covering aviation, defence, infrastructure, space technology, and healthcare, were unveiled during French President Emmanuel Macron’s first official visit to Vietnam – the first by a French president in nearly a decade.
The visit comes at a crucial moment, as global trade tensions mount following U.S. President Donald Trump’s threats to impose 50% tariffs on European Union goods starting June 1 — now delayed to July 9. Meanwhile, Vietnam, highly dependent on exports and facing its own pressure from Washington to increase imports from the U.S., is striving to strike a balance between economic necessity and strategic diversification.
Major Contracts and Strategic Cooperation
President Macron confirmed the signing of contracts worth 9 billion euros (approximately $10.25 billion), including the purchase of 20 Airbus A330neo wide-body aircraft by VietJet, cooperation on nuclear energy and space exploration, as well as key agreements in rail and maritime transport, and the supply of Sanofi vaccines. In total, 14 deals were signed, with more expected to be announced during the second day of the visit.
A notable highlight was the deepening of defence ties. Macron emphasized a “reinforced defence cooperation,” while Vietnam’s President Luong Cuong elaborated on new initiatives in cybersecurity, counter-terrorism, strategic intelligence sharing, and joint defence industry development. Airbus Defence and Space also signed a declaration of intent for a future satellite project to replace Vietnam’s current earth-observation satellite, originally launched in 2013.
In maritime transport, French shipping giant CMA CGM announced a $600 million joint venture with Saigon Newport to construct a deepwater container terminal in northern Vietnam by 2028, underscoring France’s strategic interest in Vietnam’s growing logistics and trade infrastructure.
Geopolitics and Diplomatic Symbolism
Macron’s Southeast Asia tour, which includes stops in Indonesia and Singapore, aims to reaffirm France’s engagement in the Indo-Pacific region. Speaking in Hanoi, he reiterated France’s commitment to freedom of navigation in the South China Sea — a critical issue for Vietnam in its ongoing territorial disputes with China.
France, which once ruled Vietnam as a colony until its defeat at Dien Bien Phu in 1954, has seen a gradual warming of diplomatic and economic ties. The relationship was officially upgraded to Vietnam’s highest diplomatic tier in 2023.
While symbolic moments — including a light-hearted incident involving First Lady Brigitte Macron on arrival — attracted attention online, the visit’s substantive outcomes signal a calculated and strategic pivot by both nations. France is asserting its global influence amid strained EU-U.S. trade relations, while Vietnam is leveraging international partnerships to navigate complex economic and geopolitical challenges.
As European leaders quietly caution Hanoi against overconcessions to Washington, the Airbus deal is viewed as a strategic counterbalance to recent Vietnamese overtures to Boeing, which may include the purchase of up to 250 American aircraft.
Conclusion
President Macron’s Hanoi visit cements a new chapter in Franco-Vietnamese relations, aligning economic cooperation with broader geopolitical aims. With multi-sector agreements and strengthened defence ties, both nations are positioning themselves to thrive in a shifting global landscape marked by trade realignments and strategic recalibrations.
More announcements are expected on Tuesday, as Macron continues his tour with a visit to a Hanoi university before heading to Jakarta.
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Source: Vietnam Insider