VietJet Air Orders 20 More Airbus A330neo Aircraft

France and Vietnam have signed a series of agreements, including a deal for Vietnam's budget carrier VietJet Air to purchase an additional 20 Airbus A330neo wide-body aircraft. This agreement follows a previous deal struck last year for 20 of the same aircraft models, bringing the total number of A330neo aircraft ordered by VietJet Air to 40. The visit by French President Emmanuel Macron to Hanoi is aimed at enhancing France's influence in the region, particularly as Vietnam faces stringent U.S. punitive tariffs. The agreements also cover cooperation in satellite technology, further strengthening the bilateral relationship between the two nations. This strategic partnership is expected to bolster Vietnam's aviation industry and support its growing demand for air travel, while also providing a significant boost to Airbus's market presence in Southeast Asia.

This is the first official visit by a French president to Vietnam in nearly a decade, highlighting the significance of the bilateral relationship. The agreements signed during Macron's visit cover a wide range of sectors, including aircraft procurement, nuclear energy cooperation, railway construction, satellite technology, and vaccine development. The partnership in defense and aerospace projects is particularly noteworthy, as it underscores the deepening of strategic ties between the two countries. Macron's visit to Southeast Asia also includes stops in Indonesia and Singapore, further emphasizing France's commitment to strengthening its presence in the region.

The Airbus order is a significant development for both VietJet Air and Airbus. The 20 additional A330neo aircraft will help VietJet Air expand its fleet and meet the increasing demand for air travel in Vietnam. For Airbus, this order reinforces its strong market position in the region, where it already holds an 86% share of the Vietnamese civil aviation fleet. The agreement also includes a cooperation deal between Airbus Defense and Space and Vietnam for the development of an Earth observation satellite, replacing the one built by EADS in 2013. This collaboration is expected to enhance Vietnam's capabilities in satellite technology and space exploration.

Vietnam's dependence on exports to the U.S. has put it in a delicate position, as it seeks to balance its economic interests with the geopolitical pressures from both the U.S. and Europe. The country has indicated a potential order for at least 250 Boeing aircraft for Vietnam Airlines and VietJet Air, which could help reduce the U.S. trade surplus and ease pressure from the Trump administration. However, European officials have cautioned Vietnam to ensure that any decisions do not harm European interests. The potential for such orders to strain Vietnam's relationship with the EU, a key trading partner and significant buyer of Vietnamese goods, has been highlighted as a concern.