Vietnamese authorities have instructed their nation’s leading air carriers to expedite the execution of massive aircraft procurement contracts with American manufacturers, as the Southeast Asian country works to bolster its position amid escalating trade disputes with Washington.
The order, released by the Ministry of Construction on June 5 and examined by Reuters on Tuesday, came at the request of the Ministry of Industry and Trade, which is spearheading Vietnam’s campaign to show Washington that trade agreements between the two nations are being fulfilled.
This action comes as three distinct Trump administration investigations examine Vietnam for allegedly manipulating trade through overcapacity, intellectual property theft, and utilizing products manufactured with forced labor.
According to the government document, officials instructed the national carrier Vietnam Airlines, low-cost operator Vietjet Air, and recently established Sun Phu Quoc Airways to report on advancement in executing and fulfilling contracts with American business partners, while proposing methods to increase purchases of U.S. advanced technology materials and machinery.
Vietnam Airlines and Vietjet Air collectively agreed to acquire 250 Boeing 737 MAX planes. Sun Phu Quoc Airways, the airline division of the Sun Group conglomerate, independently arranged to purchase 40 Boeing 787-9 Dreamliner wide-body aircraft, the directive indicated.
Vietjet also maintains an agreement with Pratt & Whitney, a division of RTX Group, for powerplants for its Airbus fleet, the document stated.
Vietnam’s shipments to the United States have increased dramatically. The U.S. trade imbalance with Vietnam hit $54.8 billion during the year’s first quarter, ranking second behind only Taiwan and exceeding the gaps with leading exporters China and Mexico, according to U.S. statistics.
The Trump administration has consistently stated its goal of cutting trade imbalances.
