Vietnam-France trade relations: Leverage from potential fields

Since the Vietnam-European Union Free Trade Agreement took effect in 2020, it has marked a new step forward in Vietnam-France trade relations, opening up prospects for bilateral cooperation, export and investment.

General Secretary andPresident To Lam and French President Emmanuel Macron witnessed Chairwoman of the Board of Directors of VietjetAir Joint Stock Company Nguyen Thi Phuong Thao, General Director Dinh Viet Phuong, General Director of Safran Group Oliver Andriès, and General Director of CFM International Gael Méheust sign a contract to supply engines and engine maintenance services for 200 narrow-body aircraft (France, October 7, 2024). (Photo: Tri Dung/VNA)

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Establishing diplomatic relations in April 1973, Vietnam and France have continuously maintained good relations and developed positively in all fields, especially economics, trade, investment as well as development cooperation.

After the signing of the Joint Statement on Strategic Partnership, bilateral trade relations have gained more momentum to promote growth. In particular, since 2020, the Vietnam-European Union Free Trade Agreement (EVFTA) has come into effect, marking a new step forward in bilateral trade relations.

Therefore, Prime Minister Pham Minh Chinh's attendance at the 3rd United Nations Summit to support the implementation of Sustainable Development Goal 14: Conserve and sustainably use the oceans, seas and marine resources for sustainable development, and conduct bilateral activities in France will create leverage to bring bilateral relations to a new level, commensurate with their potential and position in the region and the world .

Impressive growth

Commenting on the Vietnam-France trade relationship, Mr. Vu Anh Son - Vietnam Trade Counselor in France said: Vietnam and France established a strategic partnership in 2013 and it is considered a boost for bilateral trade. Since then, the import-export turnover of the two countries has witnessed an impressive leap.

Specifically, trade between Vietnam and France increased from 3.8 billion USD in 2013 to approximately 4.1 billion USD in 2014. By 2016, the turnover had reached 5 billion USD and continued to grow strongly to reach nearly 6.5 billion USD in 2018.

After only 5 years (2013-2018), export turnover from Vietnam to France increased by nearly 70%. This is not only a testament to the effectiveness of the high-level cooperation mechanism but also shows the dynamism of Vietnamese enterprises in seeking and expanding market share in the EU market, especially France.

Notably, when the EVFTA officially comes into effect, the 2021-2024 period will witness a strong recovery of the market with export turnover increasing from 6.1 billion USD to 7.5 billion USD, equivalent to an increase of about 23% compared to the beginning of the period and surpassing the peak before the COVID-19 pandemic (6.5 billion USD in 2019).

“EVFTA not only brings tariff benefits but also promotes reforms in rules of origin, improves the quality of goods management, expands access to logistics, finance and insurance services. Thanks to that, key products such as electronics, textiles, footwear, agriculture and aquaculture products... are increasingly widely accepted in France, creating favorable momentum to spread to EU countries,” Mr. Vu Anh Son emphasized.

Thus, after 11 years, from 2013 to 2024, Vietnam's export turnover to France has increased from about 3.8 billion USD to 7.5 billion USD. The scale of bilateral trade has thus maintained a sustainable growth momentum with an average compound annual growth rate (CAGR) of about 6.5% per year. In particular, the official upgrading of Vietnam and France to a Comprehensive Strategic Partnership in 2024 not only strengthens political and diplomatic ties but also initiates a period of extensive economic and trade cooperation.

During his official visit to the French Republic, on the morning of November 4, 2021, at the Élysée Palace, Paris, Prime Minister Pham Minh Chinh met with French President Emmanuel Macron. (Photo: Duong Giang/VNA)

The Department of Foreign Market Development (Ministry of Industry and Trade) said: Vietnam is France's second largest trading partner in the ASEAN bloc (after Singapore). France is Vietnam's fourth largest trading partner in the EU bloc (after the Netherlands, Germany, Italy). In 2024, the trade turnover between the two countries will reach more than 5.4 billion USD, an increase of 12.9% compared to 2023; of which, Vietnam will export more than 3.4 billion USD, an increase of 7.5% and import more than 2 billion USD, an increase of 23.1%.

By the end of April 2025, two-way trade turnover between Vietnam and France reached nearly 1.8 billion USD, up 9.7% over the same period in 2024. Vietnam's exports to France reached more than 1.26 billion USD, up 19.2%; imports from France reached more than 528 million USD, down 7.9% over the same period in 2024.

According to the Foreign Market Development Department, Vietnamese goods exported to France are relatively rich and diverse, including footwear; textiles; household appliances; agricultural, forestry and aquatic products; precious stones, jewelry; electrical and electronic products; mechanical tools; ceramics of all kinds; rubber; coal; toys, sports and entertainment products; plastic products; rattan and bamboo products...

On the other hand, the main imported goods from France to Vietnam are mostly high-value items with high intellectual and technological content; in which, pharmaceuticals, machinery, equipment and means of transport always account for a significant proportion and high import turnover.

Take advantage

Along with traditional export products such as textiles, footwear, etc., trade experts believe that thanks to the advantages of the EVFTA, many key agricultural products such as coffee, cashews, pepper, rice and fruits have gradually penetrated and become present in major distribution systems in France.

As evidence, on June 2, the first fresh lychees from Vietnam in the 2025 crop arrived at Paris Charles de Gaulle International Airport and appeared on French supermarket shelves, opening a campaign to promote the consumption of Vietnamese lychees in the French and EU markets.

This batch of exported lychees all have traceability stamps, helping to clarify product information and meet the strict requirements of the European market regarding quality, food safety and origin of goods.

This is the opening export activity for the campaign to promote the consumption of Vietnamese lychees in the French and EU markets. In particular, French consumers are increasingly interested in organic, environmentally friendly products with clear traceability.

This is Vietnam's strength with tropical agricultural products such as fresh vegetables, fruits (mango, dragon fruit, grapefruit, lychee...), organic rice and high-quality seafood products such as shrimp, tra fish, tuna.

The CEO of the French Carrefour Group shared that rice and fresh fruit are two Vietnamese products that have seen major changes in the French market in recent years. Previously, Vietnamese rice was only available in small stores and supermarket chains, but now it has met the standards to enter the French supermarket chain Carrefour and is sold in 250 hypermarkets.

Furthermore, according to the EVFTA roadmap, in 2020 when the Agreement comes into effect, 86% of export tax lines to the European market will be eliminated and will allow the elimination of 99% of these tax rates from 2027. This is an unprecedented opportunity to strengthen trade relations in the agricultural and food sector between France and Vietnam.

According to Mr. Vu Anh Son, by innovating the approach and promoting Vietnamese goods, the Trade Office has continuously implemented deep and wide activities towards the Project to promote Vietnamese enterprises to directly participate in foreign distribution networks with a series of Goods Weeks organized at the largest supermarkets in France.

Assessing the significance of the Vietnamese Goods Week in France program held at the Carrefour supermarket system (France), Minister of Industry and Trade Nguyen Hong Dien said that this is the first brick for an important bridge, bringing Vietnamese goods to French consumers and Carrefour is not simply a channel for distributing diverse goods but also a channel to spread Vietnamese culinary culture and flavors.

Minister of Industry and Trade Nguyen Hong Dien invited French partners to enjoy Vietnamese drinks at the opening ceremony of "Vietnamese Goods Week" at the French supermarket chain Carrefour (November 4, 2021). Photo: Nguyen Thu Ha - VNA

In order to support Vietnamese enterprises in grasping information and exploiting the French market effectively, the Vietnam FTA Portal (FTAP) at: https://fta.gov.vn/index.php?r=site%2Fcountry-profile&id=76 provides the most general information about the French market as well as the bilateral import-export trade situation. In addition, the FTAP Portal also provides necessary addresses to support enterprises in connecting trade with French partners; specific French regulations as well as general EU regulations applicable to imported and exported goods in France.

Mr. Vu Anh Son affirmed: In order to support businesses to boost exports, the Trade Office will make more efforts in searching and opening up markets; promoting the export of some potential agricultural and aquatic products of Vietnam as well as searching, connecting and attracting investment in the production and supply of materials, supplies and equipment for the development of the energy sector, especially renewable energy...

In addition, the Trade Office will also seek, discover, and connect to diversify the supply of raw materials to serve domestic manufacturing industries, promote cooperation with foreign countries to develop Vietnam's materials industry. Prioritize investment cooperation connections in the industrial sector, especially in fundamental industries.

According to Mr. Vu Anh Son, improving the quality of exported products according to EU standards is extremely necessary. Therefore, products exported from Vietnam need to strictly comply with EU regulations on food safety, quality management and environmental protection. This not only helps increase the competitiveness of Vietnamese goods in France but also contributes to building the national brand and image in the international arena.

“Businesses should consider brand building not only as a business goal but also as a commitment to bring sustainable value, in line with market requirements and expectations of French consumers. With the right approach and support from relevant agencies, Vietnamese businesses are completely successful in building brands in France and Europe,” Mr. Vu Anh Son expressed./.

(Vietnam News Agency/Vietnam+)

Source: https://www.vietnamplus.vn/quan-he-thuong-mai-viet-nam-phap-don-bay-tu-linh-vuc-tiem-nang-post1042510.vnp