France, Vietnam sign Airbus, satellite deals as Macron visits Hanoi

France and Vietnam signed a deal on Monday (May 26) for 20 Airbus planes, among other pacts, as President Emmanuel Macron visited Hanoi seeking to boost France’s influence in its former colony, grappling with threats of crippling US tariffs.

Macron’s first formal visit to Vietnam, the first by a French president in nearly a decade, follows US President Donald Trump’s threats on Friday of 50 per cent duties on EU goods from June that sharply fuelled tension with the 27-nation bloc.

Export-dependant Vietnam, under pressure from Washington to buy more American goods, has made pledges in trade talks to avert 46 per cent tariffs that could impair its growth, fanning European concerns about deals at the region’s expense.

Deals signed during Macron’s visit covered the plane purchase, cooperation on nuclear energy, railways, Airbus Earth-observation satellites and Sanofi vaccines, a list of documents seen by Reuters showed, confirming an earlier report.

In statements to the press with no questions allowed, Macron reiterated France’s support of freedom of navigation, an issue dear to Vietnam as it often clashes with Beijing over contested boundaries in the South China Sea.

Macron added the partnership with Vietnam “entails a reinforced defence cooperation”, citing the signing of multiple projects on defence and space.

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Vietnam’s President Luong Cuong said the defence partnership involved “sharing of information on strategic matters” and stronger cooperation in the defence industry, cybersecurity and anti-terrorism.

France ruled the South-east Asian country for about 70 years until it was forced out in 1954 after a major defeat at Dien Bien Phu in northern Vietnam. Ties have improved in recent decades, being upgraded last year to Vietnam’s highest level.

On his trip, the first leg of a South-east Asian tour that includes Indonesia and Singapore, Macron will visit a university in Hanoi on Tuesday, before flying to Jakarta, the Indonesian capital.

The deal with European planemaker Airbus for Vietnam’s low-cost airline VietJet to buy 20 A330neo wide-body aircraft follows last year’s agreement for 20 of the jets.

The signing followed urging by European officials in recent weeks for Vietnam to be careful in concessions made to the White House, two officials based in Vietnam with knowledge of the discussions had told Reuters, referring to concerns on Airbus.

Airbus is the main supplier of jets to Vietnam, contributing 86 per cent of its fleet, data from aviation analytics firm Cirium shows.

A separate agreement with Airbus Defence was also signed during the visit for cooperation with Vietnam on Earth-observations satellites.

Airbus has long been in talks with Hanoi for the replacement of Vietnam’s Earth-observation satellite, built by Airbus’ predecessor EADS and launched in 2013.

With an economy heavily dependant on US exports, Vietnam has signalled the possible purchase of at least 250 Boeing planes by flag carrier Vietnam Airlines and rival VietJet.

Officials of both nations have said such deals would help cut its huge trade surplus with the US and possibly appease Trump.

In talks with the US, “Vietnam should make sure not to make decisions at the expense of European interests,” one of the EU officials said.

Vietnamese leaders have been advised such steps could jeopardise close ties with the EU, which has a free trade deal with Vietnam and is a major buyer of its goods, they added. REUTERS