Mega business deals signed between Vietnam, US during Biden’s visit

Businesses from Vietnam and the U.S. signed deals and announced investments worth billions of USD during U.S. President Joe Biden’s visit to Vietnam on September 10-11.

Vietnam Airlines

National flag carrier Vietnam Airlines signed a $10-billion deal with Boeing to buy 50 737 Max jets, with handover scheduled for 2027-2030. The landmark deal is expected to support more than 30,000 jobs in the U.S.

Vietnam Airlines JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as HVN, now operates four aircraft models, namely Boeing 787, Airbus A350, Airbus A330, and Airbus A321.

Dang Ngoc Hoa, chairman of Vietnam Airlines, said the airline is making plans to expand its fleet from 2025-2030, with a vision to 2035. "The new narrow-body aircraft fleet will help the airline improve service quality for domestic and regional routes. Vietnam Airlines plans to add about 60 narrow-body aircraft by 2030 and 100 in total by 2035," he said.

Vietjet Air

Vietnamese budget carrier Vietjet Air and Carlyle Aviation Partners, a leading U.S.-based aviation finance and asset management company, signed an aircraft finance agreement worth $550 million on Monday.

Carlyle Aviation Partners, a wholly-owned member of the Carlyle Group, will finance the 737 Max aircraft purchase from the order of 200 aircraft between Vietjet and Boeing. This is a significant aircraft order and considered one of the largest commercial contracts that will contribute greatly to the trade balance between Vietnam and the U.S.

Vietjet and Boeing have agreed on the delivery timeline for the first batch of Vietjet’s 200 B737 Max order. This $25-billion order will be implemented over five years, with the first batch of 12 aircraft scheduled for delivery in 2024 to Thai Vietjet, an affiliate of Vietjet in Thailand.

TPBank, VPBank

Vietnamese private lenders TPBank and VPBank signed deals for loans totalling $400 million from the U.S. International Development Finance Corporation (DFC), a development finance institution under the U.S. government.

VPBank, the largest bank in Vietnam in terms of charter capital, struck a deal on a $300 million loan from the DFC. The seven-year loan will help the Vietnamese bank continue sustainable financing for small and medium-sized enterprises (SMEs), women-led SMEs, and climate change response and low carbon-related projects.

TPBank signed a deal for a $100 million loan from the DFC. The seven-year loan will help to finance personal loans, microenterprises, small and medium-sized enterprises (SMEs), women-led businesses, women with low incomes, and others. TPBank will disburse the loans via digital channels.

Australis Aquaculture

Massachusetts-based Australis Aquaculture will sign a memorandum of understanding (MoU) with the central province of Khanh Hoa to invest an additional $100 million to expand its sustainable aquaculture operations in Van Phong Bay.

Australis Aquaculture is well-known as the world’s largest barramundi farmer, capable of producing up to 10,000 tons in 2022, a major leap from its humble 30-ton production of 2008.

One of the earliest FDI investors in Van Phong Economic Zone, Australis has received great support from the Khanh Hoa administration for over 15 years, and spent almost $200 million to apply the most advanced marine aquaculture technology. Barramundi (Lates calcarifer) or seabass was chosen because of its high economic and environmental efficiency that could probably rival salmon.

FPT

FPT, among the biggest tech firms in Vietnam, announced its plan to invest in the U.S. and Vietnam, particularly in human resources for artificial intelligence (AI) and semiconductors.

FPT Chairman Truong Gia Binh called on the U.S. government and businesses, including Boeing, AT&T, Qualcomm, Intel, and Ford, to invest in and build a semiconductor ecosystem in Vietnam, while the Vietnamese government facilitates the training of 30,000-50,000 staff for the semiconductor sector.

Besides, FPT and Silicon Valley-based LandingAI signed a cooperation deal in which the latter will push the integration of AI in training at FPT Education, the educational arm of FPT.

FPT started doing business in the U.S. in 2008 and targets to invest $100 million in 2023 with 1,000 staff. Its goals are to employ 3,000 people in 2028 and reap a revenue of $1 billion in 2030 from the American market.

Vietnam and the U.S. agreed to raise bilateral ties to a comprehensive strategic partnership, the highest in Vietnam’s diplomatic hierarchy, during President Biden’s state visit to Hanoi. The upgrade takes Vietnam-U.S. relations on a par with Vietnam's relationships with China, Russia, India and South Korea.

The U.S.-Vietnam relationship is a trustworthy and stable partnership that has led to growth, and American companies feel welcome in Vietnam, said Virginia Foote, vice chairwoman of AmCham Hanoi.