French FDI in Vietnam: Densification, Diversification, and (Slow) Decline

The stock of French foreign direct investments (FDI) in Vietnam ranges between 1 and 3 billion USD, depending on the source, with figures varying between French and Vietnamese data. In 2024, France ranks 16th among foreign investors in Vietnam, but its European presence remains significant, behind the Netherlands. However, the contribution of French FDI has decreased, from 17% in 2019 to 13% in 2024. In terms of flows, France ranks fifth among European investors.

The French presence in Vietnam, though modest, is characterized by diversification across various sectors. More than 250 French companies operate in the country, primarily in industry, distribution, and services. Some, like Décathlon and CMA-CGM, have made Vietnam a strategic hub for production and expansion. French investments also aim to serve international markets and, more recently, the domestic Vietnamese market. Additionally, French companies contribute to large-scale projects, such as the Hanoi metro and renewable energy initiatives.

Vietnam also attracts "French Foreign Entreprises" (FFE), with a strong presence in Ho Chi Minh City, representing thousands of jobs and significant revenues. These companies, often linked to France through their origin or activities, such as Open Asia and Archetype, play a key role in the local economy.

However, France's position is under pressure from competing investors from Asia and North America, as well as other European countries, such as Germany, which have strengthened their investment strategies. Looking ahead, to maintain and increase its presence, France will need to focus on innovation, large projects, and offer increased competitiveness, particularly in the sectors of technology and energy.
 

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