France and Vietnam Sign Airbus Deal Amid US Trade Pressure
France and Vietnam signed a major agreement on Monday involving the purchase of 20 Airbus planes. The deal was part of several pacts announced during French President Emmanuel Macron’s official visit to Hanoi, aimed at strengthening France’s role in the region. Macron’s trip comes as both countries face growing concerns over potential US tariffs.
Macron’s Vietnam Visit Highlights Strategic and Trade Ties
This visit marks the first by a French president to Vietnam in almost ten years. It follows US President Donald Trump’s recent threat to impose 50% tariffs on goods from the European Union starting in June. This warning has heightened tensions between the US and the EU.
Vietnam, which relies heavily on exports, has also come under pressure from Washington. To avoid a 46% tariff on its goods, the country has made promises in trade talks with the US. These developments have raised European fears that deals with the US might come at Europe’s expense.
During Macron’s visit, multiple agreements were signed. These included the Airbus aircraft deal, as well as cooperation on nuclear energy, railways, satellite technology, and vaccines produced by Sanofi. The list of agreements was confirmed by official documents.
In a press statement, Macron reaffirmed France’s support for freedom of navigation—an important issue for Vietnam due to its ongoing disputes with China in the South China Sea. He also mentioned plans for stronger defence cooperation between France and Vietnam.
Vietnamese President Luong Cuong added that this cooperation would involve sharing strategic information and working together in areas like cybersecurity and counter-terrorism.
Deepening Defence and Trade Cooperation
France once ruled Vietnam for about 70 years before leaving in 1954 after its defeat at Dien Bien Phu. Since then, relations have steadily improved and were formally elevated last year to Vietnam’s highest diplomatic status.
Macron’s visit is part of a broader tour of Southeast Asia that will also include stops in Indonesia and Singapore. He plans to visit a university in Hanoi before heading to Jakarta, the capital of Indonesia.
The new Airbus deal is with VietJet, Vietnam’s budget airline, for 20 A330neo aircraft. This follows a similar agreement made last year. European officials had recently urged Vietnam not to offer too many concessions to the US, fearing it could harm Airbus, which supplies most of Vietnam’s aircraft.
Airbus currently provides around 86% of Vietnam’s airline fleet. A separate satellite agreement was also signed with Airbus Defence. This will support Vietnam in replacing its existing earth-observation satellite, which was built by Airbus’ predecessor and launched in 2013.
Balancing US and EU Interests
Vietnam is also in discussions to purchase more than 250 Boeing planes from US companies, including Vietnam Airlines and VietJet. These deals are seen as a way to reduce Vietnam’s trade surplus with the US and ease tensions with Washington.
However, EU officials have cautioned Vietnam to ensure that any US-focused deals do not damage its long-standing trade relationship with Europe. The EU and Vietnam have a free trade agreement, and Europe remains a key buyer of Vietnamese goods.
with inputs from Reuters
