EBC Explains 4 Key Takeaways from Vietnam's Landmark $10 Billion Agreement with France

When a country like Vietnam signs a monumental $10 billion deal with France during French President Emmanuel Macron's visit to Hanoi, the ripples extend far beyond diplomatic pleasantries. For global investors watching closely, this agreement offers a window into Vietnam's evolving economic strategy and its growing role on the world stage. At EBC, we are committing our efforts to unpacking what this means for investment opportunities and regional dynamics.

1. Vietnam Is Redefining Its Global Positioning

Too often, Vietnam is seen merely as a cheaper alternative to China in global supply chains. However, this agreement with France reveals a broader ambition. With over 30 commercial agreements spanning aerospace, pharmaceuticals, energy, and infrastructure, Vietnam is signalling that it aims to be more than just a substitute. France's engagement, through companies like Airbus, EDF, and Sanofi, showcases confidence in Vietnam's potential to become a hub for advanced manufacturing and clean energy innovation.

2. European Trade Ties Are Stronger Than Ever

Trade figures speak loudly: France ranks as Vietnam's fourth-largest partner within the European Union. The trade volume between Vietnam and the EU soared to $68.4 billion in 2024, with Vietnam maintaining a trade surplus of $35 billion, up from $28.7 billion the previous year. This underscores how critical Europe is to Vietnam's economic growth, with partnerships that go beyond raw materials and manufacturing into high-tech and green sectors.

David Barrett, CEO of EBC Financial Group (UK) Ltd, encapsulates the sentiment well: "This isn't just diplomacy—it's economic positioning. Vietnam is attracting multi-aligned capital without becoming beholden to any single power bloc. That's a rare advantage in today's divided global landscape."

3. Vietnam's Expanding Relationship with the United States

While the France deal garners headlines, Vietnam's relationship with the U.S. is no less significant. Trade between the two countries reached $136.6 billion in 2024, marking a 19.3% increase from the previous year. The U.S. has climbed to Vietnam's seventh-largest trade partner, a notable rise from twelfth in 2018. Key areas of collaboration include semiconductors, critical minerals, clean energy, and artificial intelligence manufacturing — sectors that align with U.S. goals of diversifying supply chains away from China.

Barrett adds, "Vietnam has long benefited from its position as a neutral manufacturing hub amid U.S.-China trade tensions, but that dynamic is shifting. While past administrations sought to build regional alliances, future U.S. leadership, particularly under Trump, may view countries like Vietnam less as partners and more as pressure points in a broader economic agenda."

4. What Investors Should Watch For

Vietnam's steady rise brings new opportunities and challenges for investors. Currency fluctuations in the Vietnamese đồng (VND) may increase as foreign capital flows and policy adjustments take place. Major infrastructure projects in energy and transport will likely reprice logistics, construction, and infrastructure sectors. Furthermore, sectors highlighted by both France and the U.S.—such as green technology, pharmaceuticals, and semiconductors—are primed for growth, especially firms engaged in joint ventures or supported by state initiatives.

Final Thoughts

Vietnam is executing a delicate balancing act in global economics. Its ability to attract investment from diverse sources without being tied exclusively to any single power is a strategic edge. From EBC's perspective, this makes Vietnam a compelling choice for investors seeking stability, innovation, and growth in the Asia-Pacific region.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.