Vietnam Signs $7.8 Bln Deal for 50 Boeing 737 Max Planes

Vietnam Airlines announced a $7.8 billion deal with Boeing on Monday, coinciding with the visit of President Joe Biden to Hanoi.

President Biden and Vietnamese Prime Minister Pham Minh Chinh hailed the agreement as a "historic deal" between Boeing and Vietnam Airlines during their meeting in Hanoi.

The White House, in a statement, emphasized that this deal will support over 30,000 jobs in the United States.

During a roundtable discussion with major American and Vietnamese company executives, including representatives from aviation companies, Biden revealed that Vietnam Airlines is set to acquire fifty Boeing 737 aircraft under the contract.

Vietnam Airlines currently operates a fleet of about one hundred aircraft, including fifteen Boeing 787 Dreamliners.

The new Boeing aircraft are expected to replace those that have been in service for over a decade, highlighting Vietnam's aviation sector's recent growth.

This expansion comes as the middle class in Vietnam continues to grow, leading to an increasing demand for travel.

During President Biden's visit, the US and Vietnam also signed a wide-ranging partnership agreement in the semiconductor sector.

The statement released stressed the goal of "developing Vietnam's capabilities in this area for the benefit of American industry" and commended Vietnam's role in securing robust semiconductor supply chains.

The US and Vietnam, both keen on diversifying their economic partnerships and reducing dependence on China, have been strengthening their trade relations in recent years.

Washington views Hanoi as a crucial partner in its efforts to establish global industrial supply chains with less reliance on China.