Vietjet and Boeing Forge $25bn Deal for 200 Aircraft, Marking Milestone in US-Vietnam Relations

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Vietjet, a Vietnamese airline, and Boeing, the American aircraft manufacturer, have signed a milestone deal worth $25 billion for the purchase of 200 aircraft. This agreement marks an important moment in the relations between the United States and Vietnam as US President Joe Biden embarks on his state visit to Vietnam.

The contract between Vietjet and Boeing had faced some challenges in recent times. The purchase of 200 Boeing aircraft was initially interrupted due to issues with the 737 Max. This was followed by the global supply chain disruptions caused by the COVID-19 pandemic, which further impacted Boeing’s delivery schedules. Many airlines around the world had to cancel or postpone their orders and aircraft deliveries, and Vietjet was not spared from these effects. Despite the challenges, both Vietjet and Boeing remained committed to finding common ground and establishing a long-term strategy to fulfill the contract.

Vietjet Chairwoman, Nguyen Thi Phuong Thao, and Boeing Global President, Dr. Brendan Nelson, have expressed their satisfaction with the commercial agreements between the two parties. These agreements include additional terms in the contract for the purchase of 200 Boeing 737 Max aircraft, with a total value of $25 billion. The delivery of these aircraft is scheduled to take place over the next five years, with the first batch of 12 aircraft expected to be delivered to Vietjet in 2024.

Beyond the aircraft purchase, Boeing and Vietjet have also pledged to collaborate in making Vietnam a center for aviation services. This includes training, education, and maintenance services, both for domestic and international markets. The two parties will also work together in adopting new technologies such as artificial intelligence (AI), aviation technology, and green fuels, with a focus on reducing emissions in accordance with sustainable aviation criteria. Additionally, there will be support for the development of aviation infrastructure, enhancement of airport operational capabilities, and flight management. Boeing will also facilitate Vietnam’s integration into its global supply chain for aircraft production and aviation equipment.

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The aircraft order by Vietjet is expected to create around 200,000 job opportunities in the US labor market, contributing to the growth of bilateral trade relations. It is also seen as a testament to the successful business-to-business ties between the United States and Vietnam. These achievements are not only expected to stimulate growth in the aviation industry and the Vietnamese economy but also attract numerous investors, including major corporations and investors from the United States, the world’s largest economy.

The commercial agreements reached between Vietjet and Boeing have been warmly welcomed and congratulated by the US Special Presidential Envoy for Climate, John Kerry. During a high-level conference on investment and innovation in Hanoi, President Biden expressed his appreciation for the opportunities presented by the enhanced relationship between the two countries, particularly in areas such as investment and innovation within the aviation sector.

In conclusion, the partnership between Vietjet and Boeing in the aircraft purchase and collaboration for aviation services represents a significant milestone in US-Vietnam relations. This deal not only strengthens the ties between the two countries but also brings mutual benefits in terms of job creation, economic growth, and investor interest. With the support of the US government and the commitment of both companies, Vietnam aims to establish itself as a hub for aviation services and technology, contributing to the global aviation industry’s advancement.

Frequently Asked Questions (FAQs) Related to the Above News

What is the value of the deal signed between Vietjet and Boeing?

The milestone deal between Vietjet and Boeing is worth $25 billion.

What challenges did the contract between Vietjet and Boeing face?

The contract faced challenges due to issues with the Boeing 737 Max and global supply chain disruptions caused by the COVID-19 pandemic, which affected delivery schedules.

When will Vietjet receive the first batch of Boeing aircraft?

The first batch of 12 Boeing aircraft is expected to be delivered to Vietjet in 2024.

Apart from the aircraft purchase, what other areas will Boeing and Vietjet collaborate in?

Boeing and Vietjet will collaborate in making Vietnam a center for aviation services, including training, education, maintenance services, and the adoption of new technologies such as AI, aviation technology, and green fuels.

How will the aircraft order by Vietjet contribute to job creation?

The aircraft order by Vietjet is expected to create around 200,000 job opportunities in the US labor market.

How do these commercial agreements impact US-Vietnam relations?

The agreements strengthen the ties between the two countries and bring mutual benefits in terms of job creation, economic growth, and investor interest.

What is the role of the US government in supporting this partnership?

The US government has expressed support for the enhanced relationship between Vietjet and Boeing, particularly in areas such as investment and innovation within the aviation sector.

What are the goals of Vietnam in establishing itself as a hub for aviation services and technology?

Vietnam aims to contribute to the advancement of the global aviation industry by establishing itself as a hub for aviation services and technology, with a focus on areas such as sustainable aviation and integration into Boeing's global supply chain.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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