Vietnam and France met at the High-Level Economic Dialogue Forum on November 6 to discuss ways to boost economic cooperation and investment flows. France, which has experience in implementing nearly 2,800 kilometres of high-speed rail lines, is ready to share its know-how with the Asian country, especially in line with Vietnam’s ambitious infrastructure targets. This co-operation will play a key role in Vietnam’s strategy to move into the upper middle income group and achieve double-digit growth targets.
Vietnam Economy: High Growth and Strategic Turning Point
Deputy Minister of Finance Tran Quoc Phuong emphasised at the forum that Vietnam’s economy has demonstrated strong resilience to external shocks and maintained one of the world’s highest growth rates. Vietnam’s economic targets for the coming period are quite ambitious:
GDP Growth: in 2025, GDP is expected to increase by more than 8 per cent.
Economy Size: The size of the economy will reach 510 billion US dollars in 2025, ranking 32nd in the world.
GDP per capita: by 2025, it is targeted to reach approximately USD 5,000, enabling Vietnam to enter the upper middle income group.
According to Deputy Minister Phuong, Vietnam is at a critical stage in setting strategic directions for the 2026-2030 period. In particular, public investment is planned to be the main driving force in achieving the target of sustained double-digit growth over the next 5 years. To achieve this goal, strategic infrastructure projects in energy, transport, digital technology and urban development will be prioritised.
Request for Support from France in the Field of Investment and Trade
France is a traditional and important partner in Vietnam’s international integration strategy. The two sides committed to further deepening trade and investment relations.
EVFTA and EVIPA: The two countries agreed to continue the effective implementation of the Vietnam-EU Free Trade Agreement (EVFTA). Vietnam also requested France to ratify the Vietnam-EU Investment Protection Agreement (EVIPA) as soon as possible in order to perfect the legal framework and create a transparent investment environment.
Priority Investment Areas: Vietnam wants to encourage investment flows in areas where France is strong, such as sustainable development, renewable energy, advanced technology, transport and modern agriculture.
So far, France has more than 700 investment projects in 16 economic sectors of Vietnam, with a total registered capital of nearly US$4 billion. This places France 16th out of 151 countries and territories investing in Vietnam.
Key Collaboration in Transport Infrastructure: High Speed Train Experience
Cooperation in the field of transport was one of the main agenda items of the forum. Ms Magali Cesana, Director General of the French Ministry of Treasury, stated that France is ready to share its experience.
Hanoi Metro Line: Ongoing Project
The No. 3 urban railway line project in Hanoi was cited as one of the most important examples of cooperation between the two countries. While the elevated section of the metro line has been put into service, construction progress on the underground section is still slow. Magali Cesana explained that the UJV consortium and the Hanoi Urban Railway Management Board (MRB) have submitted a new proposal aiming to complete underground works such as energy supply and telecommunication signalling before the end of the year. However, the two sides need to agree on costs and the contract price.
Hanoi – Hai Phong Railway Renovation
France has approved a non-refundable grant of 500,000 euros to conduct a pre-feasibility study for the project to renovate the Hanoi – Hai Phong railway line. In addition, the French side proposed to provide an additional 400,000 euros from the European Union’s non-refundable aid fund to realise the project.
North-South High Speed Railway Project and French Experience
In the case of Vietnam’s massive North-South high-speed railway project (about 2,800 km), the French side has expressed its readiness to share its extensive experience in this field. France has significant experience in constructing such a long high-speed railway line with very different financing models.
In this context, the Ministry of Construction has requested technical assistance and human resources training from France. The planned training programme will involve 120 local officials and will lead to the selection of 30 people for specialised training at the Railway Training Centre in Morocco.
Sustainable Development and New Growth Model
The Government of Vietnam recognises that there is a large capital requirement for infrastructure investment and sustainable development in the coming period. The legal framework for the management of ODA capital and foreign concessional loans is to be perfected with a view to transparency and harmonisation with international practices. Vietnam hopes to continue to enlist the support of partners with advanced technology and development management experience, in particular France.
For Vietnam to achieve its target of average annual GDP growth, innovation must be the cornerstone of its growth model. This strategic partnership and experience sharing with France will provide a critical support to Vietnam in achieving its economic and infrastructural transformation goals.
