Vietjet, Boeing finalize aircraft delivery plan

(Vietjet, Hanoi, September 12, 2023) - During the visit of U.S. President Joe Biden to Vietnam, Vietjet and Boeing have reached high-level agreements between the two parties.

The contract to purchase 200 Boeing aircraft by Vietjet was interrupted due to the 737 Max’s issues, followed by the consequential impacts of the Covid-19 pandemic on Boeing's global supply chain. Many orders and aircraft delivery plans worldwide have been canceled or indefinitely postponed. Vietjet’s operations, therefore, have been affected. While many airlines declined to fulfill their contracts, Vietjet and Boeing persisted in finding common ground to meet and establish a mutual long-term strategy to continue the contract.

In particular, Vietjet Chairwoman Nguyen Thi Phuong Thao and Boeing Global President Dr. Brendan Nelson have agreed and satisfied with the commercial agreements. Vietjet and Boeing have included additional terms in the contract of 200 Boeing 737 Max aircraft, with a total value of US$25 billion and their delivery is scheduled during the next five years. These aircraft are considered to be safe, efficient, fuel-saving, and world’s top environmentally friendly model. The first batch of 12 aircraft will be delivered to Vietjet in 2024.

Boeing and Vietjet will join hand to make Vietnam as a center for aviation services, including training, education, and maintenance, for both Vietnam and the international market. The two parties will also cooperate in the new technology adoption of artificial intelligence (AI), aviation technology, green fuels, and reducing emissions according to sustainable aviation criteria. Additionally, there will be support for the development of aviation infrastructure, airport operational capability enhancement, and flight management. Boeing will also promote Vietnam's participation in its global supply chain for aircraft production and aviation equipment.

Boeing and Vietjet have reflected on the initial efforts made following the Memorandum of Understanding, signed during the visit of General Secretary Nguyen Phu Trong to the United States, which was welcomed by then-Vice President Biden. The parties have made further progress since the visit of President Obama to Vietnam in 2016, where a contract for 100 aircraft was signed, and increasing to 200 aircraft two years later.

Vietjet's aircraft order is expected to generate 200,000 job opportunities for the American labor market, contributing to the growth of bilateral trade relations and is a testament for the successful business-to-business tie between the two countries. The achieved results have not only stimulated growth in the aviation industry and the Vietnamese economy but also attracted numerous investors, domestically and internationally, including major corporations and investors from the United States, the world's largest economy.

Both parties have reached commercial agreements with the welcoming and congratulations of the U.S. Special Presidential Envoy for Climate John Kerry. At high-level conference on investment and innovation on September 11 in Hanoi, President Joe Biden highly appreciated the opportunities for the two countries to enhance their relationship in areas such as investment, innovation, including the development of the aviation sector.