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.
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.