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The dynamics economic of Vietnam, marked by a rapid growth and one opening to foreign investors, attracts international interests, including those of France. The French presence is illustrated by foreign direct investment (IDE) and the implementation ofFrench companies from abroad (EFE) on Vietnamese territory. This presence is not limited to figures, it also reveals a strategic collaboration between two nations with rich histories and cultures, thus helping to reshape the local economic landscape.
Vietnam has emerged as an essential destination for foreign investments, and France, although modest in its investments, plays a significant role in the Vietnamese market. This article examines in detail the impact of this French economic presence in Vietnam, with emphasis on the foreign direct investment (FDI) and the French companies abroad (EFE).
A welcoming land for foreign investors
With its rapid growth and economic stability, Vietnam is positioning itself as a welcoming land privileged for foreign investors. Asian dominance in FDI is undeniable, but France is a key player in the European market, ranking 16th in the world among countries investing in Vietnam. The share of FDI of European origin remains at around 6% of the total FDI stock in the country.
Investment Flows Vary by Source
It should be noted that figures relating to French investments may differ depending on the source. The data from the Banque de France only take into account investments made directly from France, while Vietnamese institutions also include flows transiting through other countries, such as Hong Kong or Singapore. This disparity highlights the complexity of analyzing investment statistics.
French Foreign Direct Investment (FDI) in Vietnam
With an FDI stock estimated at $3.8 billion in 2023, France remains a modest investor, but its contribution is nevertheless significant. In 2024, it ranks fifth among European investing countries, behind countries such as the Netherlands and Luxembourg.
However, this share has seen a decline, from 17% in 2019 to 13% in 2024. This illustrates a changing dynamic, where France faces increased competition from other European countries that are also looking to strengthen their presence in the Vietnamese market.Infrastructure and Energy Projects
French companies have historically been involved in major infrastructure projects in Vietnam, an area where they have excelled. In the energy sector, companies such as EDF and Airbus have played a crucial role in various projects, strengthening economic ties between the two countries. French Enterprises Abroad (EFE) in Vietnam
The EFEs are also an integral part of the French economic presence in Vietnam. These companies, which employ around 20,000 people and generate between $4 and $5 billion in turnover, are often owned by individuals of Vietnamese origin living abroad, which strengthens economic relations between France and Vietnam.
A good number of these EFEs are distinguished by their
success in various sectors such as the food industry, catering and the luxury goods trade. Companies like Open Asia And Aden Services constitute examples of significant success, illustrating the impact of EFE on the local economy. A Diversification of Sectors of Activity
The presence of French companies in Vietnam has diversified to adapt to market changes and opportunities. Many companies are exploring the possibility of establishing themselves not only as
country of production , but also as centers of design and innovation.L’Oreal And Sanofi have notably invested in projects that are taking root in Vietnam. Conclusion on the Importance of Economic Ties
There
French economic presence in Vietnam, both through FDI and EFE, is emblematic of a mutually beneficial and evolving relationship. Despite the challenges, particularly on the bureaucratic and regulatory level, France remains a relevant player in Vietnam’s economic dynamism. These economic relationships continue to evolve, and their impact is felt across various sectors and initiatives. For more information on the topic, you can explore additional resources such as the reports from the
France-Vietnam Chamber of Commerce and Industry or analyzes of economic trends on specialized sites. FAQ on the Impact of the French Economic Presence in Vietnam
What is the role of French Foreign Direct Investment (FDI) in Vietnam?
France ranks 16th among countries investing in Vietnam, representing a 13% share of European FDI, which demonstrates its economic commitment to the region. How is the French presence measured in Vietnam?
The statistics vary depending on the source, with Vietnamese data including investments passing through third countries, while French data only takes into account direct investments from France. Who are the main French investors in Vietnam?
In 2024, France was the fifth European investor in Vietnam, with an investment amount of $52.5 million, behind the Netherlands, Luxembourg, Germany and Denmark. Which sectors are mainly covered by French companies in Vietnam?
French companies focus on the aeronautics, energy, infrastructure, as well as manufacturing and IT services sectors. How does France position itself compared to other European countries in Vietnam?
Although France has lost market share in European FDI, it remains a key player in Vietnam’s economic development, especially with companies like Airbus and EDF. What are the categories of French companies present in Vietnam?
French companies are organized around large infrastructure projects, low-cost production bases for export, as well as product design centers. What is the importance of French Companies Abroad (EFE) in Vietnam?
EFEs represent around 20,000 jobs and generate $4 to $5 billion in turnover, illustrating their crucial role in the local economy. What are examples of successful EFE in Vietnam?
Companies like Open Asia, Apple Tree and Aden Services have established themselves and are experiencing significant success in different sectors.