Macron secures Airbus and satellite deals in Vietnam

France and Vietnam signed an agreement on Monday, including the purchase of 20 Airbus aircraft, during Emmanuel Macron’s visit to Hanoi. This visit aimed to strengthen France’s influence in its former colony and counter the threat of heavy US tariffs.

Macron’s first official visit to Vietnam, the first by a French president in nearly a decade, followed US President Donald Trump’s threat on Friday to impose a 50% tariff on the 27-nation EU starting in June.

Export-dependent Vietnam, under pressure from Washington to buy more American goods, made commitments in trade talks to avoid 46% tariffs that could negatively impact its growth. This situation has heightened European concerns about deals that could be detrimental to the region.

According to Reuters, the agreements signed during Macron’s visit cover areas such as aircraft procurement, nuclear energy, railways, Airbus Earth observation satellites, and Sanofi vaccines.

In press statements where no questions were taken, Macron reiterated France’s support for freedom of navigation. This emphasis signals support for Vietnam, which frequently faces issues with Beijing due to border disputes in the South China Sea.

Macron also stated that the partnership with Vietnam requires “strengthening defense cooperation,” referring to numerous projects signed in the defense and space sectors.

Vietnamese President Luong Cuong said the defense partnership includes “information sharing on strategic issues” and stronger cooperation in defense industry, cybersecurity, and counter-terrorism.

France governed the Southeast Asian nation for approximately 70 years until its withdrawal in 1954, following a major defeat at Dien Bien Phu in northern Vietnam. Relations have improved in recent years and were elevated to Vietnam’s highest level of relations last year.

As the first leg of his Southeast Asia tour, which also includes Indonesia and Singapore, Macron will visit a university in Hanoi on Tuesday before flying to Jakarta, the capital of Indonesia.

The agreement between European aircraft manufacturer Airbus and Vietnam’s low-cost airline VietJet for the purchase of 20 A330neo wide-body aircraft follows a deal for 20 jets last year.

The agreement was signed after European officials recently urged Vietnam to be cautious about concessions made to the White House. Two officials in Vietnam, familiar with the discussions, conveyed this information to Reuters, citing concerns related to Airbus.

According to data from aviation analytics firm Cirium, Airbus is the primary supplier, providing 86% of Vietnam’s jet aircraft.

During the visit, a separate agreement was also signed between Airbus Defence and Vietnam for cooperation on Earth observation satellites.

Airbus had been in long-standing discussions with Hanoi regarding the renewal of Vietnam’s Earth observation satellite, which was produced by Airbus’s predecessor, EADS, and launched in 2013.

Vietnam’s economy, largely dependent on US exports, has indicated that its flag carrier, Vietnam Airlines, and rival VietJet could purchase at least 250 American Boeing aircraft.

Officials from both countries stated that such deals would help reduce the large trade surplus with the US and potentially appease Trump.

An EU official, referring to discussions with the US, stated, “Vietnam should not make decisions that disregard European interests.”

The EU official warned Vietnamese leaders that such actions could jeopardize their close relations with the EU, which has a free trade agreement with Vietnam and is a significant buyer of the country’s goods.