Vietnamese Airlines Sign $37B in Contracts with US Aerospace Firms

Three Vietnamese airlines have announced contracts with U.S. aerospace companies valued at a combined total of nearly $37 billion. The agreements, which include new aircraft orders, engine maintenance, and leasing, signal a major fleet expansion for one of Southeast Asia's fastest-growing aviation markets.

These significant US-Vietnam aviation contracts were signed during a diplomatic visit to Washington by Vietnamese leader To Lam and come as the two nations continue trade negotiations. The deals underscore the rapid growth of the Vietnamese aviation sector, which posted eight percent GDP growth last year despite U.S. tariffs on its products, according to Vietnam's General Statistics Office.

Breakdown of the Agreements

Fledgling carrier Sun PhuQuoc Airways placed the largest single order, a commitment for 40 Boeing 787 Dreamliners with an estimated list price of $22.5 billion. In a statement, the year-old airline said the purchase supports its "strategic ambition to build a truly intercontinental network," aligning with an emerging "resort aviation" model designed to boost international tourism.

Vietnam's flag carrier, Vietnam Airlines JSC (VN), finalized an $8.1 billion order for approximately 50 Boeing 737-8 aircraft. The airline also confirmed discussions for a potential future order of about 30 wide-body aircraft. According to the carrier's chairman, Dang Ngoc Hoa, the agreement creates "a solid foundation for our ambition to become a leading airline by 2030."

Low-cost carrier Vietjet Aviation Joint Stock Company (VJ) announced two separate contracts totaling $6.3 billion. The larger portion, valued at $5.4 billion, is with Pratt & Whitney for engine supply and maintenance services for its fleet of 44 Airbus A320 series aircraft. The remaining $960 million is allocated to a lease agreement with Griffin Global Asset Management for six Boeing 737 series aircraft.

Market Context and Future Outlook

The agreements reflect a broader trend of fleet modernization and expansion among Vietnamese carriers. The country's aviation market is projected to reach 150 million annual passengers by 2035, driven by a competitive landscape dominated by Vietjet and Vietnam Airlines. These new-generation aircraft orders are critical for supporting network growth and improving fuel efficiency. The deals also highlight the significant role of U.S. aerospace exports in the ongoing trade relationship between Washington and Hanoi, which are still working to finalize a trade agreement.

flying.flights is your source for accurate commercial aviation news and global aviation updates. Get the latest updates on major hubs, regional terminals, and airport operations via the Airports section at flying.flights/airports.