$15 Billion in Orders for US Company Signed During Trump's Visit to Vietnam
CORRECTION: This article was published under the headline “Trump’s Visit to Vietnam Results in $15 Billion in Orders for US Company.” In reality, while both deals were signed during Trump’s recent visit to Southeast Asia, they had both been announced in 2018. Therefore, the causation implied in the headline was incorrect.
We have added clarifying information to the article about the dates on which the deals were announced, and we have changed the headline of the article. We apologize for the error and any confusion we may have caused.
Vietnamese airlines signed documents last week to buy more than $15 billion worth of American passenger jets.
Bamboo Airways and VietJet Aviation signed off on the agreements during President Donald Trump’s visit to Hanoi, Vietnam, for his summit with North Korean leader Kim Jong Un.
Bamboo will buy 10 787-9 Dreamliners, which come to about $3 billion, after announcing in 2018 plans to buy 20 for 2020 or 2021 delivery. VietJet signed an agreement confirming its 2018 plan to buy one hundred 737 Max planes in a deal worth about $12.7 billion, Boeing said Wednesday, according to the Chicago Tribune.
General Electric Co. signed a $5.3 billion deal with VietJet that will allow it to service engines for 200 Boeing 737 Max aircraft that are on order.
Trump said the purchases are a sign of positive partnerships between the two nations.
“And I know today, whether it’s Boeing and a couple of others, we’re going to be signing some very big trade deals where you’re buying a lot of different products from the United States, which we greatly appreciate. We’re reducing the deficit very substantially, as are many countries. But I very much appreciate the hospitality,” Trump said last week, according to a White House media pool report.
While in Hanoi, Trump made a “buy American” pitch to Vietnamese leaders.
“I really appreciate the orders that you made today of Boeing and General Electric, and the various other companies that will be selling you aircraft. I also appreciate the fact that you’re looking at much of our military equipment,” Trump told Vietnamese officials, according to another White House pool report.
“We make the best military equipment in the world, by far. Whether it’s jet fighters or missiles or rockets, or anything you want to name, we make — we’re acknowledged to have made — we make the best. So I appreciate you looking at that very strongly, and I know that’s a decision you’ll make. And we appreciate very much that you’re reducing the trade deficit with the United States, which was very substantial before I got here,” Trump said.
Air travel in Vietnam is expanding as part of the overall economic expansion taking place in Southeast Asia.
Vietnam’s air safety system was recently certified by the U.S., which means it can now schedule direct flights to and from the U.S.
“We plan to open routes to cities with Vietnamese communities living in the United States such as in California, serving the large traveling and commercial demand from customers,” VietJet’s vice president To Viet Thang said in a statement, Reuters reported.
Bamboo Airways Chairman Trinh Van Quyet said Bamboo was considering creating routes to Seattle, Los Angeles or San Francisco. Service could start as early as 2020, he said.
Vietnam Airlines, the nation’s national carrier, was less certain of its plans.
“For Vietnam Airlines, launching routes to the U.S. is our political responsibility as a national airline. Whether or not the route is commercially feasible depends quite a lot on technical issues and aircraft,” the airline said.
Even so, the airline could buy up to 100 737 Max planes, with delivery taking place between 2020 and 2030, said CEO Duong Tri Thanh, according to Bloomberg.
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