France, Vietnam sign deals worth $10bn as Macron visits Hanoi

France and Vietnam signed deals on Monday on Airbus aeroplanes, defence and other pacts, worth more than $10bn (R178.54bn) as President Emmanuel Macron visited Hanoi seeking to boost France's influence in its former colony amid risks of high 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 to impose 50% duties on EU goods from June 1, fuelling tensions with the 27-country bloc, though he later delayed that deadline to July 9.

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

Macron said France signed €9bn (R182.78bn) worth of contracts in Vietnam during his visit.

Deals covered the purchase of 20 Airbus aeroplanes, co-operation on nuclear energy, defence, rail and maritime transport, Airbus earth-observation satellites and Sanofi vaccines, a list of documents seen by Reuters showed, confirming an earlier report.

In total 14 deals were signed, which would be short of the dozens the French presidential palace had said were in preparation before the visit, but more agreements were expected to be announced on Tuesday, an official said.

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 co-operation”, citing the signing of multiple projects on defence and space.

Vietnam's President Luong Cuong said the defence partnership involved “sharing information on strategic matters” and stronger co-operation in the defence industry, cybersecurity and antiterrorism.

France ruled the Southeast 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 Southeast Asian tour that includes Indonesia and Singapore, Macron met Vietnamese leaders and will visit a university in Hanoi on Tuesday, before flying to Jakarta, the Indonesian capital.

The deal with European aircraft manufacturer 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 companies did not announce the value of the deal or delivery schedule.

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 told Reuters, referring to concerns about Airbus.

Airbus is the main supplier of jets to Vietnam, but with an economy heavily dependent on US exports, Vietnamese officials have signalled the possible purchase of at least 250 Boeing aircraft by flag carrier Vietnam Airlines and rival VietJet in moves meant to help cut the country's huge trade surplus with the US and possibly appease Trump.

Airbus Defence and Space signed a separate declaration of intent with Vietnam on satellites.

The company 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. The new pact involves “exploring a future programme”, Airbus said.

During the visit, French transport company CMA CGM said it signed a deal with Saigon Newport to build a deepwater container terminal in North Vietnam by 2028 for a joint investment worth $600m (R10.71bn).