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France, Vietnam sign defence deal as Macron visits Asia

Francesco Guarascio and Phuong NguyenReuters
Vietnam and France have signed defence and space pacts as President Emmanuel Macron visits Asia. (AP PHOTO)
Camera IconVietnam and France have signed defence and space pacts as President Emmanuel Macron visits Asia. (AP PHOTO) Credit: AAP

France and Vietnam have signed a deal for 20 Airbus planes, as well as defence and space pacts as President Emmanuel Macron visited Hanoi seeking to boost France's influence in its former colony, grappling with threats of crippling 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 per cent duties on European Union 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 per cent tariffs that could impair its growth, fanning European concerns about deals at the region's expense.

Deals signed during Macron's visit on Monday covered the plane purchase, cooperation on nuclear energy, defence, 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 the partnership with Vietnam "entails a reinforced defence cooperation", citing the signing of multiple projects on defence and space.

Vietnam's President Luong Cuong said the defence partnership involved "sharing of information on strategic matters" and stronger cooperation in the defence industry, cybersecurity and anti-terrorism.

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.

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