Three Vietnamese airlines have signed a $30 billion deal with Boeing to buy 90 aircraft. The deal signifies the cooperation in aviation and trade between the US and Vietnam
Reuters- Three Vietnamese airlines have recently signed a deal with US manufacturers for Boeing(BA) to buy 90 aircraft. The deal signed on Thursday is part of negotiations between the two nations on a new trade deal.
The deal was signed by the head of Vietnam’s Communist Party during his visit to the United States to attend the inaugural meeting of the Board of Peace. The Board of Peace is a new initiative launched by US President Donald Trump to address the ongoing conflicts across the globe.
Vietnamese airlines have signed a $9.1 billion agreement with Boeing for 50 narrow-body 737-8 jets, according to a recent statement released by Vietnam Airlines.
The airlines are scheduled to receive the delivery of aircraft between 2030 and 2032. The statement further added that this deal will increase the total fleet of aircraft to approximately 151 by 2030.
The airlines are also in talks with Boeing to buy 30 wide-body planes worth more than $12 billion. Newly established airline for Vietnam, Sun PhuQuoc, recently signed a $22.5 billion contract with Boeing on Thursday for 40 of their E787-9 Dreamliners, built in Washington State.
At the same time, Vietjet, a Vietnamese low-cost carrier (LCC), has completed a $965 million loan through Griffin Global Asset Management to purchase six B737-8 aircraft.
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Vietnam has stated earlier this month that it was interested in purchasing more American goods since the announcement made by White House in October, which stated that the United States would keep the tariffs on the majority of Vietnamese goods at 20% while eliminating duties on certain products.
The signing of this agreement demonstrates increased cooperation in both aviation and trade between the United States and Vietnam, potentially bolstering Boeing’s long-term orders in the Asian region.
Additionally, it signals Vietnam’s growing demand for air travel and its fleet modernization effort. Passenger traffic continues to rebound throughout the region, creating a need for more aircraft. From a trade perspective, purchasing aircraft could help create a more balanced trade relationship and reduce tension related to tariffs.
Many analysts also believe that these types of large aircraft commitments may positively impact supply chains, create jobs, and lead to additional opportunities for international cooperation in the space program for both countries.
