France, Vietnam strengthen economic ties

 Fleur Pellerin, French Minister of State for Foreign Trade, the Promotion of Tourism and French Nationals Abroad

What will be prioritised during this visit to Vietnam? What are you expecting from this visit?

My visit to Vietnam takes place within the framework of the strategic partnership that was signed between our two countries on September 2013. In the economic field, we have set a number of common ambitious objectives through this partnership, especially when it comes to industrial and technological co-operation in sectors that are strategic to the development of Vietnam. This is the reason several French companies such as GDF Suez, EDF and Egis are accompanying me.

France continues to support Vietnam in the implementation of public policies like combating climate change and promoting public-private partnerships: in the latter sector, the French Technical Assistance Agency ADETEF and EGIS will sign a technical assistance contract with the Ministry of Planning and Investment. Also among these strategic priorities, I will have discussions with the Vietnamese authorities about our ODA to Vietnam and specifically on the Hanoi metro line 3 projects, which France has nearly half financed. This project is fundamental to our bilateral relationship. Hence, we will put a special focus on its implementation.

The second goal of my visit is to promote bilateral trade relations and their further development, albeit in a more balanced way. Vietnam enjoys a significant trade surplus with France. Some companies like Pierre Fabre in the pharmaceutical sector, and professional unions operating in producing fruits and vegetables also are accompanying me with a specific agenda on market access conditions. France fully supports the conclusion of an ambitious, comprehensive and balanced EU-Vietnam FTA, which will boost our trade relations.

Last but not least, this visit will also be an opportunity for me and my delegation to meet with prominent personalities of the Vietnamese business community, both in Hanoi and Ho Chi Minh City, and to find ways and means with them to improve partnerships with French businesses.

Vietnam and France forged a strategic partnership last year. What changes in the two countries’ commercial relations have been seen so far?

The two governments are actively implementing the partnership. Since the beginning of the year, several exchanges between Vietnamese and French leaders have taken place. For example, the second High Level Economic Dialogue which was held at the ministerial level in Paris in April 2014, and also through the events of this year’s Vietnam Year in France.

Regarding our companies, the partnership aims at developing long-term industrial co-operation. The best example is the recent purchase agreement for 63 Airbus planes by VietJetAir and the subsequent deal for the motorisation of a first package of aircraft with CFM engines.

France remains the second largest European investor in the country. French companies can take a greater part in sectors like environment, energy, and transport, where we can develop very fruitful co-operation, profitable for both sides.

Are you upbeat about the two countries’ two-way trade activities?

Our bilateral trade is dynamic. In 2013, it has expanded by 5.3 per cent year-on-year and has reached €3.5 billion ($4.74 billion), and it has still great potential for development, given particularly the prospects of economic growth of Vietnam. Yet as I mentioned before, our trade relations are marked by a large imbalance in favour of Vietnam, amounting to more than €2 billion ($2.7 billion) last year. Therefore we are targeting a more balanced growth of our bilateral trade. 

What should be done to further promote the strategic partnership regarding two-way trade between the two countries?

Both countries must keep the focus on implementing the strategic partnership and achieving concrete results. We have a clear roadmap with the Vietnamese authorities for this goal. And as I said, we have already seen some very positive outcomes since last September.

In what additional sectors should Vietnam and France boost co-operation to deepen their strategic partnership?

In the field of “sustainable urban development”, France can bring a lot more to Vietnam through water and sanitation, urban transport and energy efficiency solutions.

Energy is clearly defined as a priority sector in the strategic partnership. Partnerships with French companies in electricity generation, transmission and distribution have been quite consistent with companies like ALSTOM, EDF and Schneider Electric. But we can do much better. EDF and GDF-SUEZ are ready to invest more in Vietnam. France, together with its Japanese partners, is also ready to support Vietnam in the development of its nuclear power sector.

With the financing provided for medical equipment for Can Tho General Hospital, France is also resuming its ODA to the health sector where both countries enjoy a longstanding and fruitful cooperation.