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

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.

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.

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.