Vietjet Air and Vietnam Airlines have secured substantial financial commitments, totaling nearly $860 million, to support their ambitious growth and fleet expansion plans. Vietjet finalized a $300 million agreement with AV AirFinance, while Vietnam Airlines inked a $560 million funding deal with Citibank. The agreements were formalized during a high-profile signing ceremony, attended by Vietnam’s Deputy Prime Minister Ho Duc Phoc and other senior officials, as part of an official visit to the U.S. aimed at enhancing economic and trade relations between the two nations.
Vietjet’s deal with AV AirFinance is part of a larger strategy involving over $4 billion in aircraft financing agreements with U.S. financial institutions. These funds are earmarked for Vietjet’s plan to expand its fleet by nearly 300 new aircraft by 2027. This includes the delivery of Boeing 737 MAX aircraft, which will be part of a landmark $24 billion order of 200 planes, with deliveries scheduled to begin in 2025. This deal, initially announced in 2019 with U.S. President Donald Trump present, marks a major milestone in Vietjet’s growth strategy. Additionally, the airline is deepening its ties with U.S. companies such as GE, Pratt & Whitney, and Honeywell, with long-term contracts valued at approximately $50 billion. Negotiations are ongoing for further agreements, which could add up to $14 billion in new deals. This includes key agreements for engines and technical services with GE and Pratt & Whitney, which alone exceed $10 billion.
Meanwhile, Vietnam Airlines has secured a $560 million commitment from Citibank to support its long-term investment plans. This funding will be used to enhance the airline’s operational capacity and extend its international route network. In addition to the financial backing, Citibank will also provide strategic advisory services to help Vietnam Airlines build a strong financial foundation, ensuring efficient investment and risk management in the years ahead.
This partnership with Citibank is a critical part of Vietnam Airlines’ strategy to modernize its fleet and increase its competitiveness on the global stage. The deal also reflects the airline’s commitment to aligning with evolving trends in the aviation industry, especially through collaborations with top-tier financial institutions. Le Duc Canh, executive vice president of Vietnam Airlines, highlighted the significance of the deal, noting that it not only provides access to high-quality capital but also strengthens the airline’s position in the global aviation value chain.
Both agreements signify the growing strength of Vietnam’s aviation sector, with both Vietjet and Vietnam Airlines positioning themselves for long-term growth. These financial commitments underscore the strengthening economic ties between the U.S. and Vietnam, marking a pivotal moment in the development of the Vietnamese aviation industry. The collaborations with U.S. companies are expected to contribute to reducing the trade imbalance between the two countries while enhancing the global competitiveness of both airlines.
