Search

Vietnam Signs New Trade Deals with US Worth $8 Billion

Vietnam Signs New Trade Deals with US Worth $8 Billion
REUTERS/Jonathan Ernst © U.S. President Donald Trump welcomes Vietnam’s Prime Minister Nguyen Xuan Phuc at the White House in Washington on May 31, 2017

Vietnam and the US have signed $8 billion in deals, including a massive engine contract with a Vietnamese budget carrier, VietJet.

The deals were announced during a visit by Vietnam’s Prime Minister Nguyen Xuan Phuc to the White House on Wednesday, a trip aimed at drumming up trade ties. Mr Phuc is the first Southeast Asian leader to visit Mr Trump’s White House. 

The new deals saw Vietjet sign a 12-year engine contract worth $3.58 billion with CFM International, a joint venture of General Electric and Safran. The airline also signed a separate deal worth $1 billion with GE Capital Aviation Services in aircraft financing. 

U.S. President Donald Trump greets Vietnamese Prime Minister Nguyen Xuan Phuc at the White House in Washington, U.S., May 31, 2017. Image: REUTERS/Kevin Lamarque
U.S. President Donald Trump greets Vietnamese Prime Minister Nguyen Xuan Phuc at the White House in Washington, U.S., May 31, 2017. Image: REUTERS/Kevin Lamarque

“We strongly believe that this agreement will promote economic and trade exchange between the two countries and create millions of jobs for the two peoples,” said Vietjet CEO Nguyen Thi Phuong Thao, who is the communist country’s first and only female billionaire. 

The country’s largest low-cost carrier, Vietjet raked in $1.21 billion in revenues last year and its shares have soared since its market debut in February.   

Honeywell (HON.N) also signed a $100 million deal to supply VietJet with 98 auxiliary power units for the airline's new fleet of Airbus (AIR.PA) A320 aircraft, including maintenance for 12 years.

U.S. President Donald Trump welcomes Vietnam's Prime Minister Nguyen Xuan Phuc at the White House in Washington, U.S. May 31, 2017. Image: REUTERS/Jonathan Ernst
U.S. President Donald Trump welcomes Vietnam's Prime Minister Nguyen Xuan Phuc at the White House in Washington, U.S. May 31, 2017. Image: REUTERS/Jonathan Ernst

 

Hilton Worldwide (HLT.N) signed a deal worth $650 million to manage a 610-room dual-branded hotel in Vietnam, while port security firm Passport Systems Inc signed a deal worth $1 billion, with $420 million in U.S. content, Commerce said.

The other new deals, signed in the sectors of hospitality, science and technology, academia and energy, come as Washington opts for bilateral agreements over sprawling free trade pacts. 

Phuc told Trump the relationship had undergone "significant upheavals in history" but that the two countries were now "comprehensive partners."


Source : Khmer Times | Reuters

Indah Gilang Pusparani

Indah is a researcher at Badan Perencanaan Pembangunan Penelitian dan Pengembangan Daerah Kota Cirebon (Regional Development Planning and Research Agency of Cirebon Municipality). She covers More international relations, tourism, and startups in Southeast Asia region and beyond. Indah graduated from MSc Development Administration and Planning from University College London, United Kingdom in 2015. She finished bachelor degree from International Relations from University of Indonesia in 2014, with two exchange programs in Political Science at National University of Singapore and New Media in Journalism at Ball State University, USA. She was awarded Diplomacy Award at Harvard World Model United Nations and named as Indonesian Gifted Researcher by Australian National University. She is Researcher at Regional Planning Board in Cirebon, West Java. She previously worked as Editor in Bening Communication, the Commonwealth Parliament Association UK, and diplomacy consulting firm Best Delegate LLC in USA. Less
View all posts

Thank you for reading until here