French Ambassador to Vietnam Jean-Noël Poirier said the decision was made on July 1 and an awards ceremony will be held soon.
The Legion of Honour order, the highest decoration in France, was established by Napoleon Bonaparte in 1802 to recognise individuals with outstanding contributions to the French Republic, as well as ties between France and other countries.
The order has five degrees, namely Chevalier (Knight), Officier (Officer), Commandeur (Commander), Grand Officier (Grand Officer) and Grand Croix (Grand Cross).
In 2012, Dr Phuong also received France’s National Order of Merit for her significant contribution to the development of the French language and culture.
Dr Phuong, born in 1950, studied at Paris I University and Lyon II University before beginning her teaching career at Hoa Sen University in 1991. She became principal of Hoa Sen University in 1996.