Vietnam Air and Boeing are on the verge of finalizing a nearly $7.5 billion agreement for the purchase of 50 737 Max planes ►

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Vietnam Airlines is anticipated to formalize a preliminary agreement to acquire approximately 50 Boeing 737 Max aircraft in a transaction valued at roughly $7.5 billion, according to an individual with knowledge of the negotiations, with the deal’s announcement coinciding with U.S. President Joe Biden’s visit to Hanoi aimed at strengthening relations between the two nations.

Boeing has an agreement in place with VietJet, a competitor of Vietnam Airlines, for the purchase of 200 of its 737 MAX aircraft.

There was no immediate response from Boeing and Vietnam Airlines to requests for comments.

In 2022, Vietnam emerged as the fifth swiftest-expanding aviation market globally after it eased COVID-19 travel restrictions, as reported by the International Air Transport Association (IATA). Projections from IATA suggest that by 2035, Vietnam is poised to accommodate a staggering 150 million air transport passengers, underscoring the remarkable growth potential within the country’s aviation sector.

In the second quarter of this year, Vietnam Airlines reported a net loss of 1.3 trillion dong ($53.96 million), marking its 14th consecutive quarter of financial losses, which the airline attributed to increasing fuel costs and various financial risks. Concurrently, Boeing has been engaging in discussions with Vietnamese authorities, alongside other U.S. defense firms, exploring potential transactions involving military hardware such as drones and helicopters.

Boeing, headquartered in Arlington, Virginia, currently maintains six suppliers located in Vietnam and is actively collaborating to enhance their capabilities.