Vietjet inks financial deal with AV AirFinance, Vietnam Airlines signs MoU to secure Citibank funding

By Thai Ha
Thu, April 10, 2025 | 3:28 pm GMT+7

Vietnamese budget carrier Vietjet Air and AV AirFinance on Wednesday signed a financial agreement totaling $300 million, while national flag carrier Vietnam Airlines inked an MoU with Citibank to secure a funding commitment exceeding $560 million.

The Vietjet-AV AirFinance signing ceremony took place in the presence of Vietnam’s Deputy Prime Minister Ho Duc Phoc and other senior Vietnamese government officials, as part of their official mission aimed at strengthening U.S.-Vietnam economic and trade relations amid U.S. tariff tensions.

The agreement is part of a broader series of aircraft financing deals totaling over $4 billion that Vietjet has secured with leading U.S. financial institutions.

These commitments aim to support Vietjet’s new fleet development plan, with the projected delivery of nearly 300 aircraft between 2025 and 2027.

Vietjet vice president To Viet Thang (left) and AV AirFinance CEO Stephen Murphy sign an $300 million agreement to boost the airline’s fleet expansion. Photo courtesy of Vietjet.

Vietjet vice president To Viet Thang (left) and AV AirFinance CEO Stephen Murphy sign an $300 million agreement to boost the airline’s fleet expansion. Photo courtesy of Vietjet.

Stephen Murphy, CEO of AV AirFinance, remarked that this new commitment will support Vietjet’s resurgent growth in the Asia-Pacific region via new generation aircraft.

In 2025, Vietjet will begin taking delivery of the first batch of Boeing 737 MAX aircraft from its landmark order of 200 aircraft, valued at over $24 billion. The deal was originally announced on February 27, 2019, in Vietnam, in the presence of U.S. President Donald Trump.

As part of its global growth strategy, the airline is currently in discussions to further expand this historic order. In addition to its collaboration with Boeing, Vietjet has established long-term strategic partnerships with several major U.S. corporations, including GE, Pratt & Whitney, and Honeywell, with total contract values reaching approximately $50 billion.

Ongoing negotiations are expected to add a further $14 billion. Notably, Vietjet’s engine and technical service agreements with GE and Pratt & Whitney alone now exceed a combined value of $10 billion.

The airline is also deepening its technology partnerships with leading U.S. firms such as Microsoft, Apple, and Google, while exploring collaboration with SpaceX to integrate advanced technologies across its fleet.

These high-value contracts are poised to contribute significantly to reducing the trade imbalance between Vietnam and the United States in the near future.

With a strategic focus on developing a modern fleet and a global flight network, Vietjet currently operates a fleet of over 115 new, fuel-efficient aircraft, with more than 400 additional aircraft on order.

Vietnam Airlines secures over $560 million in strategic investment from Citibank

On the same day, Vietnam Airlines signed an MoU with Citibank, N.A., securing a funding commitment exceeding $560 million to support its strategic investment initiatives.

Representatives of Vietnam Airlines and Citi exchanged the MoU at a signing ceremony on April 9, 2025, in New York, the U.S. Photo courtesy of Vietnam Airlines.

Representatives of Vietnam Airlines and Citi exchanged the MoU at a signing ceremony on April 9, 2025, in New York, the U.S. Photo courtesy of Vietnam Airlines.

The ceremony was witnessed by Deputy Prime Minister Ho Duc Phoc, also as part of the Government delegation’s official visit to the U.S.

Under the agreement, Citibank has committed to providing financial support for Vietnam Airlines’ investment projects aimed at strengthening the national airline’s operational capacity and expanding its international route network in the years ahead.

Beyond funding, Citibank will also deliver strategic advisory services to help Vietnam Airlines build a robust financial framework, ensuring efficient investment and effective risk management.

Collaborating with leading global financial institutions - especially those based in the US - is a key pillar of Vietnam Airlines’ long-term strategy to enhance competitiveness, modernize its fleet, and stay aligned with evolving global aviation trends.

“The greement represents a pivotal milestone in advancing our strategic goals. Partnering with globally recognized financial institutions like Citibank not only grants us access to high-quality capital but also paves the way for deeper integration into the global value chain,” said executive vice president of Vietnam Airlines, Le Duc Canh.

Following the signing, Vietnam Airlines was set to meet with the Export-Import Bank of the US (EXIM) in Washington, D.C., to explore potential loan guarantee opportunities.

President Donald Trump on Wednesday dropped his reciprocal tariffs for countries reaching out to the U.S. to negotiate to 10% for 90 days. The 90-day reprieve is applied to nearly 90 nations except for China.

The General Statistics Office of Vietnam reported on Sunday that Vietnam posted a trade surplus of $3.16 billion in Q1/2025. The U.S. was Vietnam’s biggest export market with an export revenue of $31.4 billion, up 16.5% year-on-year. Vietnam’s trade surplus with the U.S. in January-March was $27.3 billion, up 22.1% year-on-year.

Comments (0)
  • Read More
Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.

Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.

Energy - Thu, October 16, 2025 | 9:04 pm GMT+7

Vietnam to soon raise taxpayers' personal deduction: official

Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Finance - Thu, October 16, 2025 | 6:25 pm GMT+7

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.

Economy - Thu, October 16, 2025 | 4:36 pm GMT+7

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.

Finance - Thu, October 16, 2025 | 3:35 pm GMT+7

Law No. 56 a major policy breakthrough for Vietnam's stock market development

Law No. 56 a major policy breakthrough for Vietnam's stock market development

The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.

Finance - Thu, October 16, 2025 | 2:30 pm GMT+7

WHA Group breaks ground on smart technology industrial zone in central Vietnam

WHA Group breaks ground on smart technology industrial zone in central Vietnam

Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.

Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.

Companies - Thu, October 16, 2025 | 12:06 pm GMT+7

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.

Companies - Thu, October 16, 2025 | 8:41 am GMT+7

Indonesia enjoys steady growth in nine months

Indonesia enjoys steady growth in nine months

Indonesia's Ministry of Finance on Tuesday announced the country’s 2025 budget performance as of September, reporting that Southeast Asia’s largest economy continued to post steady growth despite global economic uncertainties.

Southeast Asia - Wed, October 15, 2025 | 9:53 pm GMT+7

Malaysia on progressive path towards AI nation status: experts

Malaysia on progressive path towards AI nation status: experts

Malaysia is on a progressive track towards becoming an Artificial Intelligence (AI) nation by 2030, a goal seen as achievable under Budget 2026 - the Malaysian Government’s fiscal and policy framework for 2026.

Southeast Asia - Wed, October 15, 2025 | 9:44 pm GMT+7

Thailand steps up development of semiconductor industry

Thailand steps up development of semiconductor industry

Thailand’s Board of Investment (BOI) plans to propose a new national semiconductor and advanced electronics policy board to the government, which will spearhead Thailand’s semiconductor development strategy.

Southeast Asia - Wed, October 15, 2025 | 9:40 pm GMT+7

ASEAN sets ambitious energy targets

ASEAN sets ambitious energy targets

Senior energy officials from ASEAN member nations and Timor-Leste on Tuesday convened in Kuala Lumpur, Malaysia, to finalize key outcomes and policy recommendations to be submitted to the 43rd ASEAN Ministers on Energy Meeting (AMEM).

Southeast Asia - Wed, October 15, 2025 | 9:33 pm GMT+7

Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam

Sun Group gets nod for $375 mln inland waterway tourism project in central Vietnam

A subsidiary of Sun Group, one of Vietnam’s leading real estate developers, has received approval to invest VND9.88 trillion ($375 million) in an inland waterway tourism project in the central coastal city of Danang.

Industries - Wed, October 15, 2025 | 5:21 pm GMT+7

Vietnamese luxury car dealer Haxaco’s business slumps, stock nears two-year low

Vietnamese luxury car dealer Haxaco’s business slumps, stock nears two-year low

The operations of Hang Xanh Automobile Service JSC or Haxaco (HoSE: HAX), known as the largest distributor of Mercedes-Benz vehicles in Vietnam, are under pressure as consumers tighten spending and competition among car brands intensifies.

Companies - Wed, October 15, 2025 | 5:13 pm GMT+7

Vietnam sets 2026 GDP growth target at 10%

Vietnam sets 2026 GDP growth target at 10%

The Vietnamese Government has set the targets for economic expansion in 2026 at about 10% and inflation at 4.5%.

Economy - Wed, October 15, 2025 | 4:28 pm GMT+7