France and Vietnam Seal Airbus, Satellite Deals as Macron Bolsters Ties Amid U.S. Tariff Threats

May 26, 2025, Hanoi — French President Emmanuel Macron’s visit to Hanoi culminated in the signing of multiple agreements, including a deal for 20 Airbus planes, as France seeks to deepen its influence in Vietnam amid looming U.S. trade pressures. The first visit by a French president in nearly a decade, Macron’s trip follows U.S. President Donald Trump’s threat to impose 50% tariffs on EU goods from June, later delayed to July 9, intensifying global trade tensions.

Vietnam, facing U.S. demands to reduce its trade surplus, signed pacts covering aviation, nuclear energy, railways, satellites, and vaccines, reinforcing bilateral ties. Macron emphasized France’s commitment to a rules-based order, particularly in supporting Vietnam’s stance on South China Sea navigation rights, while both nations pledged enhanced defense cooperation.

Strategic Deals to Counter Trade Tensions

During a ceremony at the Presidential Palace, Vietnam’s low-cost carrier VietJet finalized a deal with Airbus for 20 A330neo wide-body aircraft, building on a 2024 agreement for 20 jets. This strengthens Airbus’s dominance in Vietnam, where it supplies 86% of the commercial fleet, according to aviation analytics firm Cirium. A separate agreement with Airbus Defence will advance cooperation on earth-observation satellites, part of ongoing talks to replace Vietnam’s aging satellite, built by Airbus’s predecessor EADS in 2013.

Additional pacts included nuclear energy collaboration, railway infrastructure, and vaccine production technology transfers via Sanofi. Real-time reports indicate these deals, potentially numbering up to 30, aim to bolster France’s economic foothold in Southeast Asia as Vietnam navigates U.S. pressure to purchase 250 Boeing planes to offset its $18 billion trade surplus with the U.S. in 2024.

Did You Know?
Vietnam’s aviation market is one of the fastest-growing globally, with passenger traffic expected to reach 153 million annually by 2035, according to the International Air Transport Association.

Geopolitical Context and Defense Focus

Macron’s visit, the first leg of a Southeast Asian tour including Indonesia and Singapore, comes as Vietnam balances its export-driven economy against U.S. tariff threats of 46%. European officials have urged Hanoi to avoid concessions that could undermine the EU, a key trading partner with a free trade agreement since 2020. In a joint press statement, Macron reiterated France’s support for freedom of navigation in the South China Sea, a critical issue for Vietnam amid disputes with China.

Vietnamese President Luong Cuong highlighted enhanced defense ties, including strategic information sharing, cybersecurity, and anti-terrorism cooperation. Social media sentiment reflects optimism about the deals but underscores concerns about Vietnam’s delicate balancing act between U.S. and EU interests.

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Regional Tour and Future Implications

Macron’s itinerary includes a university visit in Hanoi on Tuesday before heading to Jakarta and concluding at Singapore’s Shangri-La Dialogue, Asia’s premier defense summit. The agreements signal France’s ambition to position itself as a reliable partner amid U.S. and Chinese trade pressures. Vietnam’s potential Boeing purchases, which could reshape its aviation market, have raised European concerns about losing market share.

However, the EU’s $45 billion in annual trade with Vietnam underscores the importance of maintaining strong ties. Analysts suggest Macron’s visit could pave the way for further French investment in Vietnam’s burgeoning tech and energy sectors, with the country’s energy demand projected to grow 8% annually through 2030.