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Fleur Elizabeth Philip
1 June 2025 |
The following note was first published as a part of The World This Week #313 Vol 7, No 22, 01 June 2025
President Macron’s visit to Vietnam, Indonesia & Singapore:
The focus on Politics, Trade and Defence
Fleur Elizabeth Philip
What happened?
On 26 May, France’s President Emmanuel Macron embarked on a visit to Southeast Asian countries- Vietnam, Indonesia, and Singapore. He met the Secretary General of Vietnam’s Communist Party, who said that with “France, there is trust, reliability, and friendship.” France and Vietnam signed over a dozen deals worth USD 10 billion in various sectors, including, in defence, the sharing of information on strategic matters, cybersecurity, and anti-terrorism. Vietnam also signed an agreement for the purchase of vaccines from the French pharmaceutical company Sanofi. Airbus signed a separate declaration on the development of Earth-observing satellites. The two countries discussed possible cooperation in the development of new power sources, pumped storage, hydropower, energy storage, and grid operations, and signed two agreements on renewable and nuclear energy.
On 28 May, he visited Central Java, Indonesia, where he met President Prabowo Subianto. Both leaders signed several deals boosting cooperation. The deals include the order of 42 French military equipment, Rafale jets, and Scorpion submarines. Five radar systems would be installed in Nusantara. 20 MoUs worth USD 11 billion were signed between French mining company Eramet and the newly established Indonesian sovereign wealth fund Danantara.
On 29 May, President Macron traveled to Singapore. He attended the 22nd Shangri-La dialogue, which is taking place from 30 May to 01 June. Macron at the Shangri-La dialogue in Singapore stated that the aim of building new coalitions between Europe and Asia is to reset the global order, amidst the growing tensions between China and the US. France also aims to strengthen the commercial ties between the EU and Asia. France and Singapore have signed agreements on nuclear power, clean energy, defence, cyberspace, AI, and intelligence sharing. Both Prime Minister Wong and President Macron emphasized the importance of legitimate international engagement amidst the China-US trade war. Wong said that, with uncertainty everywhere, it is important for “like-minded” countries like France and Singapore to work together.
What’s the background?
First, France’s ties with Vietnam. In October 2024, France and Vietnam established a Comprehensive Strategic Partnership (CSP), which, according to Hanoi, is of the highest diplomatic ties. Vietnam, among the Southeast Asian regions, is the 17th largest trading partner of the EU, and the value of trade in goods in the FY 2024 had reached EUR 67 billion. The cultural ties between France and Vietnam go back to the 17th century. It started off with the arrival of the French Catholic Missionaries, followed by French colonization. For 60 years, French influence could be seen in every aspect of Vietnamese lifestyle, including in their architecture, culture, art, and cuisine.
Second, the economic ties between France and Indonesia. The economic relationship between the countries is multifaceted, robust, and developing. Indonesia imports various products from France, like aircraft equipment, computers, machinery, cosmetics, chemicals, perfumes, food, metals, metallurgical products, and pharmaceuticals, whereas France imports electronics, nuclear reactors, rubber, fish, animal fat, vegetable oils, medical apparatus, and many more.
What does this mean?
First, the visit to Southeast Asia suggests that, amidst the trade war and economic uncertainties around the world, Southeast Asia now has the opportunity to diversify their exports, expanding their presence in European and Middle Eastern markets.
Second, for France, the trip would likely increase its influence in the region and renew its past relations. By signing deals on defence and energy, France advocated for a balance in the international order and poses as an alternative player in the Indo-Pacific region, in addition to the US and China. With France, Vietnam, Indonesia, and Singapore finding alternative solutions to the tariffs, this visit could lead to cooperation between the EU and ASEAN.
About the author
Fleur Elizabeth Philip is a Research Assistant at NIAS.
