France and Vietnam signed a deal on Monday for 20 Airbus planes, and several other pacts worth over $10 billion as President Emmanuel Macron visited Hanoi looking to bolster France's influence in its former colony as the world grapples with threats of crippling U.S. tariffs.
Macron's first formal visit to Vietnam, the first by a French president in nearly a decade, followed U.S. President Donald Trump's threats on Friday of 50% duties on EU goods from June that sharply fueled tension with the 27-nation bloc. Trump later dialed back on the threat, extending the date on potential levies until July 9.
Export-dependent Vietnam, under pressure from Washington to buy more American goods, has pledged in trade talks to avert U.S. tariffs, as high as 46%, that could impair its growth. This has fanned European concerns about deals at the region's expense.
Macron said France signed 9 billion euros ($10.25 billion) worth of contracts in Vietnam during his visit.
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 total, 14 deals were signed, which would be short of the dozens that 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 that the partnership with Vietnam "entails a reinforced defense cooperation," citing the signing of multiple projects on defense and space.
Vietnam's President Luong Cuong said the defense partnership involved "sharing of information on strategic matters" and stronger cooperation in the defense industry, cybersecurity and counterterrorism.
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 will visit a university in Hanoi on Tuesday, before flying to Jakarta, the Indonesian capital.
Airbus deal
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 companies did not announce the value of the deal or the delivery schedule for the planes.
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, but with an economy heavily dependent on U.S. exports, Vietnamese officials have signalled the possible purchase of at least 250 Boeing planes by flag carrier Vietnam Airlines and rival VietJet in moves meant to help cut the country's huge trade surplus with the U.S. 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 in a statement.
During the visit, French transport company CMA CGM said it signed a deal with Saigon Newport to build a deepwater container terminal in northern Vietnam by 2028 for a joint investment worth $600 million.