Illustration: eiffel tower and pont alexandre iii at night — by Getfunky Paris, via Wikimedia Commons (CC BY 2.0).
When a French group considers expanding into Southeast Asia, Vietnam routinely makes the shortlist. The reason is not a single incentive but a rare combination: a “China + 1” location, the region’s broadest FTA network, competitive costs, political stability — and a decades-long legacy of Franco-Vietnamese cooperation. This article examines Vietnam through the eyes of French investors themselves.
1. The legal framework: EVFTA and the new Investment Law
The EVFTA, in force since 1 August 2020, gives Vietnamese goods deep tariff preferences in the EU while opening Vietnam’s market to EU investors on a committed schedule. For French investors, the EVFTA is a two-way passport: manufacture in Vietnam for preferential export to the EU, and bring French goods and services into Vietnam at declining duty rates.
On investment, the Law on Investment 143/2025/QH15 (adopted 11 December 2025, effective 1 March 2026, replacing Law 61/2020/QH14) continues administrative reform — fewer ex-ante approvals, stronger ex-post supervision and greater investor autonomy. French investors establishing enterprises or acquiring stakes in Vietnam operate under this framework alongside the EVFTA’s market-access commitments.
2. Energy: the spearhead of French capital
Energy is where French investors hold a clear comparative advantage. Vietnam has fast-growing power demand, and its Power Development Plan VIII targets strong growth in renewables and LNG-to-power. French energy groups — with global experience in offshore wind, solar and energy infrastructure — see ample room across the value chain, from project development and equipment to operations. Government-to-government cooperation in energy also has a long tradition, which smooths the institutional path for large-scale projects.
3. Retail and consumption: a 100-million-consumer market
Retail is the second gateway. Vietnam’s young population, expanding middle class and rapid urbanisation are the classic formula for consumption growth. French retail brands have long been present in Vietnam, from distribution networks to fashion, cosmetics and food labels. The EVFTA’s phase-out of duties on EU consumer goods further strengthens the competitiveness of French products in Vietnam — and opens room for French retailers to expand their distribution footprints.
4. The cooperation legacy: a soft advantage that cannot be copied
Vietnam–France ties carry exceptional historical depth, crowned by the comprehensive strategic partnership established in October 2024. The Vietnamese community in France and the French community in Vietnam form a natural business network. Bilingual education, cultural cooperation programmes and the presence of French trade promotion bodies in Vietnam materially shorten the market-learning curve for French investors compared with peers lacking such a legacy.
5. Risks to face squarely
The picture is not all rosy. French investors should note: administrative procedures, though reformed, remain complex at the implementation level; the legal framework for land and renewable energy (power pricing mechanisms) continues to evolve; and competition from investors of other countries in the same sectors keeps intensifying. The wise strategy pairs FTA advantages with a local partner who understands implementation realities.
Frequently asked questions
What does the EVFTA concretely offer French investors?
Two-way tariff preferences on a phase-down schedule, services and investment market-access commitments, and a stable legal framework for Vietnam–EU supply chains.
What is notable in the new Investment Law for foreign investors?
Law 143/2025/QH15 (effective 1 March 2026) cuts ex-ante procedures, strengthens ex-post supervision and decentralises authority — investors should update compliance processes for the new law rather than relying on experience under the 2020 law.
Which sectors attract French investors most in Vietnam?
Energy (renewables, LNG), retail and distribution, infrastructure, and supporting industries for “China + 1” supply chains.
What is the biggest investment risk in Vietnam?
Administrative complexity at the implementation level and evolving sectoral policy mechanisms (especially energy). The answer is a strong local partner and close policy monitoring.
This article has been quality-reviewed by the FLAW AI Legal Council
