France and Vietnam signed important deals on Monday. One of them included an order for 20 Airbus planes. French President Emmanuel Macron visited Hanoi to boost ties. This was his first official trip to Vietnam.
His visit came days after U.S. President Donald Trump threatened 50% tariffs on EU goods starting in June. That warning increased trade tensions between the U.S. and the European Union.
Vietnam depends on exports to grow its economy. The country is under pressure from the U.S. to buy more American products. To avoid a 46% tariff, Vietnam has made trade promises to Washington. But those moves have worried European officials.
Macron Seeks Stronger Partnership
France and Vietnam signed several other deals. They agreed to work together in areas like nuclear energy, railways, satellites, and vaccines from Sanofi. Reuters confirmed these agreements by checking official documents.
At a press conference, Macron said France supports freedom of navigation. Vietnam values this support as it has maritime disputes with China in the South China Sea.
Macron said the partnership “entails a reinforced defence cooperation.” He highlighted multiple projects on defense and space.
Vietnamese President Luong Cuong added that both sides would share “information on strategic matters.” He said they would also work together in defense, cybersecurity, and anti-terrorism.
From Colonization to Cooperation
France ruled Vietnam for nearly 70 years. It lost control in 1954 after a major defeat at Dien Bien Phu. Since then, ties have improved. In 2023, both countries upgraded their relations to the highest level.
Macron’s visit to Vietnam is part of a larger Southeast Asian tour. He will visit Indonesia and Singapore next. On Tuesday, he plans to visit a university in Hanoi before flying to Jakarta.
Airbus Secures Vietnam Deal
Vietnamese airline VietJet agreed to buy 20 A330neo wide-body jets from Airbus. This follows another 20-plane deal signed last year.
European officials had earlier warned Vietnam. They asked Hanoi not to give too many trade concessions to the U.S. They feared it might hurt European companies like Airbus.
Airbus is Vietnam’s top jet supplier. According to Cirium, Airbus planes make up 86% of Vietnam’s airline fleet.
Vietnam also signed a deal with Airbus Defence. Both sides will work on earth-observation satellite projects. Vietnam wants to replace a satellite launched in 2013, which was built by Airbus’s predecessor, EADS.
Balancing U.S. and EU Ties
Vietnam may also buy more than 250 Boeing planes. Vietnam Airlines and VietJet are likely to make those purchases. Officials say the move could reduce the trade gap with the U.S. and calm Washington’s concerns.
However, an EU official warned, “Vietnam should make sure not to make decisions at the expense of European interests.” European leaders told Vietnam that ignoring the EU could damage ties. The EU has a free trade deal with Vietnam and buys many of its products.