Vietnam orders airlines to accelerate U.S. deals as Washington trade probes mount

Vietnam has ordered its major airlines to review the progress of multibillion-dollar agreements signed with Boeing (BA.N), opens new tab and Pratt & Whitney, and explore new import ​deals with American companies, as Hanoi seeks to strengthen ‌its hand in trade talks with the United States, Reuters reported.

The directive, issued by the Ministry of Construction on June 5 and reviewed by Reuters on Tuesday, followed a ​request from the Ministry of Industry and Trade, which is ​leading Vietnam's efforts to demonstrate to Washington that bilateral ⁠trade commitments are being acted upon.

The move follows three separate Trump ​administration probes targeting Hanoi for allegedly distorting trade through excess capacity, intellectual property ​violations, and the use of goods produced using forced labour.

In the document, the ministry told flag carrier Vietnam Airlines (HVN.HM), opens new tab, budget airline Vietjet Air (VJC.HM), opens new tab, and newly launched ​Sun Phu Quoc Airways to provide details on the progress made to ​implement and deliver deals signed with U.S. partners, and to propose ways to expand ‌imports ⁠of American high-technology materials and equipment.

Vietnam Airlines and Vietjet Air together signed a deal to purchase 250 Boeing 737 MAX aircraft. Sun Phu Quoc Airways, the aviation arm of the Sun Group conglomerate, separately contracted ​to buy 40 Boeing ​787-9 Dreamliner wide-body ⁠jets, according to the directive.

Vietjet also holds a contract with Pratt & Whitney, part of RTX Group, for ​engines for its Airbus aircraft, according to the document.

Vietnam's ​exports ⁠to the United States have surged. The U.S. trade deficit with Vietnam reached $54.8 billion in the first three months of this year, second only ⁠to ​Taiwan and higher than the deficits with ​major exporters China and Mexico, U.S. data showed.