Billion dollar deals during US President's visit

Many Vietnamese businesses have reached cooperation agreements and investment deals worth billions of dollars with large American corporations during President Joe Biden's visit.

US President Joe Biden's state visit to Vietnam on September 10-11 is an opportunity for the two countries to promote relations in the fields of investment, innovation, chip technology, semiconductors , and green transformation.

On this occasion, many cooperation and investment initiatives were signed by Vietnamese and American enterprises, aiming to realize and promote the comprehensive strategic partnership. For example, the memorandum of understanding worth 10 billion USD in the field of aviation services between Vietnam Airlines and Boeing to purchase 50 737 Max aircraft. These aircraft are expected to be delivered in the period of 2027 - 2030.

Representatives of Vietnam Airlines and Boeing signed an agreement to purchase 50 Boeing 737 Max aircraft worth 10 billion USD, during the State visit of US President Joe Biden, September 11. Photo: VNA

Vietjet Air also signed an aircraft financing agreement worth 0.55 billion USD with Carlyle - a large US financial group. Accordingly, Carlyle Aviation Partners (under Carlyle Group) will provide finance for the 737 Max series of aircraft in the order of 200 aircraft between Vietjet and Boeing.

Carlyle Aviation Partners is a global aircraft leasing and finance company founded in 2002. It manages 396 aircraft in 59 countries around the world, with total assets of up to 385 billion USD.

In addition, Vietjet and Boeing agreed to deliver the first aircraft to the airline under the order for 200 B737 Max aircraft signed in 2016 during President Barack Obama's visit to Vietnam. This order worth more than 25 billion USD will be implemented over the next 5 years, with the first 12 aircraft delivered in 2024.

In the finance and banking sector, on September 10, VPBank announced that it had received a 7-year bilateral loan of 300 million USD from DFC Group to strengthen its capital base and promote sustainable financial activities. A similar loan of 100 million USD was also provided by DFC to TPBank.

These loans will help the two banks continue their sustainable finance activities, including supporting SMEs, women-owned small and medium enterprises, and shifting their investment portfolios towards activities against climate change - low-carbon technology.

Not only receiving capital from the US, Vietnamese enterprises are also increasing their investment in this market . FPT Chairman Truong Gia Binh announced on September 11 that he plans to invest 100 million USD and nearly 1,000 employees in the US by the end of this year. He also proposed that the US government nurture the semiconductor ecosystem in Vietnam. With continuous investments, FPT expects to create more than 3,000 jobs by 2028 and achieve revenue of 1 billion USD from the US market by 2030.

Along with the investment plan, the group also announced a comprehensive strategic cooperation with LandingAI - a company in the field of machine vision and artificial intelligence in Silicon Valley (USA) to accelerate the process of bringing AI into training at the FPT Education system.

Previously, in the Joint Statement on upgrading Vietnam-US relations to a Comprehensive Strategic Partnership, General Secretary Nguyen Phu Trong and President Joe Biden agreed to create more favorable conditions and open markets for goods and services from each country, and jointly address issues such as market access barriers through the Trade and Investment Framework Agreement.

The two leaders supported the continued strengthening of the non-discriminatory and rules-based multilateral trading system, in which the World Trade Organization (WTO) plays a pivotal role.

The United States pledged to increase support for Vietnam in manufacturing, the development of high-quality physical and digital infrastructure, equitable energy transition, sustainable and smart agriculture, as well as support Vietnam's deep and sustainable participation in regional and global supply chains. The United States also pledged to increase support for Vietnam in training and developing a high-tech workforce.

The two countries announced the launch of human resource development initiatives in the semiconductor sector, with the US government providing an initial seed grant of $2 million, along with future support from the Vietnamese government and the private sector.

Vietnam-US relations were normalized in July 1995 and upgraded to Comprehensive Partnership in July 2013. Vietnam-US trade reached nearly 124 billion USD last year, a 275-fold increase in 27 years.

The US is Vietnam's largest export market and second largest trading partner. In turn, Vietnam is the US's 7th largest trading partner in the world and the largest in ASEAN.

Vnexpress.net