Vietnam Airlines (VN, Hanoi Noi Bai International) has signed a memorandum of understanding with Vietcombank to help fund an order for 50 narrowbody aircraft. The agreement, signed by Vietnam Airlines CEO Le Hong Ha and Vietcombank CEO Le Quang Vinh on April 23, does not name the manufacturer of the aircraft, although the airline signalled plans to order fifty B737 MAX in 2023.
State-owned Vietnam Airlines wants to expand and upgrade its fleet over the next decade, and the funding package will cover aircraft payments and long-term loans from 2026 to 2032. The majority state-owned Vietcombank has previously provided funding to the airline to purchase aircraft.
"The investment is aimed at expanding the short and medium-haul network in key markets such as Southeast Asia, Northeast Asia, and domestic markets, where demand for transportation is growing rapidly and competition is increasingly fierce," Vietnam Airlines said in a statement. "This investment serves as a cornerstone of Vietnam Airlines’ long-term fleet strategy for 2025–2035, with a vision extending to 2040," it added.
The carrier first floated plans to buy 50 narrowbodies in 2018. Five years later, when US President Joe Biden was visiting Viet Nam, the White House said the airline would sign an order for B737-8s. However, at the time ch-aviation reported Vietnam Airlines remained uncommitted and had yet to secure financing.
Earlier this month, in a separate financing deal, Vietnam Airlines signed a USD560 million memorandum of understanding with Citibank S.A. "to support its strategic investment initiatives." The airline also said it would meet with the EXIM Bank (United States of America) to explore potential loan guarantee opportunities.
Any aircraft order would help the country reduce its USD123.5 billion trade surplus with the United States. The surplus is a key factor behind US President Donald Trump's recent decision to impose a 46% tariff on Vietnamese imports, which Viet Nam's government is now negotiating to reduce.
According to the ch-aviation PRO airlines module, Vietnam Airlines flies to 65 airports in 21 countries with a fleet of 98 aircraft, including three A320-200Ns, thirty-nine A321-200s, twenty A321-200Ns, fourteen A350-900s, five (wet-leased) ATR72-500s, eleven B787-9s, and six B787-10s.
