France and Vietnam Sign Over $10 Billion in Trade and Defence Deals

France and Vietnam finalised over $10 billion worth of agreements on Monday, covering aviation, defence, and various other sectors during President Emmanuel Macron’s visit to Hanoi. This trip marks the first official visit by a French head of state to Vietnam in nearly ten years, as Macron aims to strengthen France’s role in the region amidst growing trade tensions with the United States.

Macron’s arrival follows recent warnings from the U.S. about imposing steep tariffs on EU goods, which have sparked concerns across Europe. Meanwhile, Vietnam—heavily reliant on exports—has faced pressure from Washington to increase purchases of American products in an attempt to avoid similarly high tariffs that could impact its economy.

During his visit, Macron announced that contracts worth around 9 billion euros (approximately $10.25 billion) had been signed. These include the sale of 20 Airbus aircraft, as well as agreements in nuclear energy, defence, transportation, satellite technology, and healthcare—specifically vaccine cooperation with Sanofi.

In total, 14 deals were confirmed on Monday, although officials hinted more would be revealed the following day. Prior to the visit, French officials had suggested dozens of agreements were in the works.

Speaking to the press, Macron emphasised the importance of maritime freedom—an issue of strategic significance to Vietnam given its territorial disputes with China in the South China Sea. He also underscored a deepening defense collaboration, highlighting projects related to both military and space sectors.

Vietnamese President Luong Cuong stated that the partnership would focus on sharing strategic information and bolstering cooperation in areas such as the defence industry, cybersecurity, and counter-terrorism efforts.

France, which governed Vietnam as a colony for nearly 70 years before being ousted in 1954, has seen relations with the Southeast Asian nation improve significantly, with diplomatic ties upgraded last year to Vietnam’s highest category of partnership.

Macron’s stop in Vietnam is part of a broader tour of Southeast Asia that also includes Indonesia and Singapore. While in Hanoi, he met with senior Vietnamese officials and is scheduled to visit a university before departing for Jakarta.

Major Aviation and Space Deals

Among the most significant agreements was the sale of 20 Airbus A330neo jets to Vietnamese budget airline VietJet. This follows a similar deal for 20 of the same aircraft last year. Though no pricing or delivery timeline was publicly disclosed, the move strengthens Airbus’s long-standing role as a key aircraft supplier in Vietnam.

European negotiators had reportedly urged Vietnam not to make too many concessions to Washington amid speculation that Hanoi could shift more aircraft purchases toward U.S. manufacturer Boeing in hopes of reducing its trade surplus with the United States. Vietnam Airlines and VietJet have signaled potential orders for as many as 250 Boeing aircraft.

Additionally, Airbus Defence and Space signed a preliminary agreement with Vietnam regarding satellite cooperation. The agreement aims to develop a future project to replace the country’s current earth-observation satellite, originally built by Airbus’s predecessor and launched in 2013.

French logistics firm CMA CGM also signed a new partnership with Saigon Newport during the visit, further expanding France’s business footprint in Vietnam.