The upcoming agreement, revealed in a confidential schedule obtained by Reuters, marks a crucial step in VietJet's long-term expansion plans. It will take place at the Vietnamese Embassy in Washington on April 9—coinciding with the day U.S. tariffs on Vietnamese-made goods are set to take effect, barring diplomatic reprieve.
Strengthening Strategic Ties with U.S. Industry Giants
According to the internal document signed by VietJet leadership and dated March 31, the financing deal is intended to support the acquisition of aircraft, although it remains unclear whether this refers to new orders or existing agreements. Notably, VietJet already has an ongoing deal to purchase 200 Boeing 737 MAX aircraft—originally signed in 2016 and later revised—but has yet to receive any deliveries. Boeing is expected to deliver the first 14 jets from that order later this year, the airline previously announced.
In addition, VietJet is reportedly considering a potential order of 20 Boeing 787 jets, underscoring the airline's ambition to grow its fleet and solidify partnerships with U.S. aerospace firms. These moves align with Vietnam’s broader strategy of increasing American imports, a calculated response to U.S. complaints about the country's growing trade surplus.
Diplomacy in the Skies: Trade Pressure Spurs Action
Vietnam finds itself in a delicate position after the Trump administration announced sweeping 46% tariffs on certain Vietnamese goods—set to commence on April 9. The looming trade penalties have prompted a flurry of diplomatic overtures from Hanoi, including pledges to cut import duties and purchase more U.S. products. Aircraft deals like VietJet’s are viewed by analysts and officials alike as a strategic tool for Vietnam to demonstrate goodwill and rebalance trade relations.
The involvement of Deputy Prime Minister Ho Duc Phoc in the signing ceremony highlights the political weight behind the agreement. His U.S. trip, which begins on April 6, is seen as part of a broader push to engage American stakeholders and potentially negotiate tariff relief.
Limited Transparency, But Growing Interest
While VietJet, KKR, and Vietnamese authorities have remained tight-lipped about the upcoming deal, the move has generated considerable interest within both aviation and political circles. Boeing declined to comment, referring inquiries to VietJet. Meanwhile, sources say both VietJet and national carrier Vietnam Airlines are in talks to acquire more passenger jets, though no further details have emerged.
In January, VietJet claimed it had nearly $50 billion in agreements with major U.S. corporations, including Boeing, and was in the process of negotiating an additional $14 billion in deals. However, the company has offered little public clarity since that announcement.
As Vietnam navigates the challenges of protecting its export-driven economy from escalating U.S. tariffs, deals like this one could play a pivotal role in shaping the future of its trade and aviation landscape.