France’s exports to Vietnam were worth $1.47 billion in 2021, as per the United Nations database on international trade. Vietnam’s economic growth is projected to go to 6.3 percent in 2023 as service sector growth moderates and prices and interest rates rise, according to the World Bank.
Trade Relations between France and Vietnam
France was one of the first Western nations to assist Vietnam’s reform movement in the 1980s. Since that time, the nation has been a significant source of government development support for Vietnam. France is now ranked third among European nations investing in Vietnam in terms of investment activities. Moreover, Vietnam is ranked second among the nations in Asia that receive French overseas development assistance (ODA).
French Investment in Vietnam
Since 1993, France has invested more than US$18.4 billion in Vietnam. From roughly US$1.6 billion in 2009 to US$5.3 billion in 2019, two-way trade turnover between Vietnam and France has recently increased by more than three times. In Vietnam, more than 300 French businesses operate in a variety of sectors and areas. At the same time, innovative Vietnamese businesses have been executing business and investment activities in France. In 35 Vietnamese provinces and cities in 2021, French businesses have investment projects. France added two new projects in January 2023, totaling $US10.65 million in registered capital, increasing the total number of French FDI projects in Vietnam to 660, totaling $US3.8 billion.
France’s Exports to Vietnam
With a population of around 100 million, a burgeoning middle class, and a desire for luxury goods, Vietnam has a sizable consumer market. Vietnamese customers are very drawn to the many well-known products and brands produced in France, particularly in the dairy and beauty industries.
The need for top-notch pharmaceuticals is rising in Vietnam. However, France is home to some of the largest pharmaceutical firms in the world and has a solid reputation for creating cutting-edge, high-quality medicines. Many of these pharmaceutical firms have a presence in Vietnam, either through joint ventures with other corporations, direct investments, or distribution deals. For example, Sanofi, Servier, Ipsen, and Pierre Fabre
The Vietnamese government has made a concerted effort to encourage the growth of the healthcare industry and the utilization of foreign funding for infrastructure projects in the sector. This involves boosting preventive care, developing new hospitals and clinics, and increasing the availability of health insurance. For French pharmaceutical firms, this is encouraging.
France is renowned for making fine wood floors, furniture, and other adornments. Also, French wood goods are frequently praised for their exceptional designs and high caliber of craftsmanship. Vietnamese buyers prize French-made wood items for their quality and attention to detail, which drives up their demand. Furthermore, France has a long history of sustainable forest management, so the wood used in its goods frequently comes from well-managed forests. For certain Vietnamese consumers who are more worried about the environmental impact of the things they buy, this is a crucial factor to take into account.
Officials in Vietnam are also encouraging France to ratify the Vietnam-EU Investment Protection Agreement to strengthen bilateral collaboration (EVIPA). The EU and Vietnam entered into the EVIPA agreement to safeguard investors and investments between the two parties and guarantee the equitable treatment of investors. By protecting investors and their interests, once adopted, this should encourage cross-border investment. Over the years, two-way trade between France and Vietnam has gradually increased. Both nations are anticipated to see increased prosperity and economic integration with continuous attempts to improve trade and economic cooperation.