Vietnam signs $15b deals in US goods, services

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Vietnam signs $15b deals in US goods, services

Vietnamese companies signed an estimated US$ 15 billion in deals for United States goods and services during the visit of Prime Minister Nguyen Xuan Phuc to Washington DC.

The deals between Vietnam and United States covered health care, hospitability, technology, aviation, energy as well as cooperation in investment and trade. It could help United States to push down trade deficit with Vietnam which has increased from US$ 7 billion to around US$ 32 billion over the last decade.

Vietjet, second-largest air carrier in Southeast Asia, secured three contracts valued around US$ 4.7 billion, including a US$ 3.58 billion order for 215 engines and technical support with CFM International, a division of US’ General Electric and France’s Safran Aircraft Engines, Nikkei Asian Review reported.

Vietjet signed a US$ 1 billion agreements with GE Capital Aviation Services on financing its purchase and leaseback of 10 aircrafts. The air carrier also signed a US$ 180 million agreement for auxiliary power units and maintenance with Honeywell.

The low-cost airline, which operates 45 Airbus A320 and A321 aircrafts, will expand its fleet to over 50 this year. It signed up for 100 Boeing aircrafts last year, with the first due for delivery in 2019.

Phu Cuong Group also signed a US$ 2 billion deal with General Electric for wind turbines and maintenance for an 800-megawatt power project in the Mekong Delta, located in southwestern of Vietnam.

Media reports said Tin Thanh Group has signed an agreement with Roberts Group for trade and investment cooperation valued around US$ 3 billion. Vietnamese ITC firm FPT signed an agreement with United Parcel Service to upgrade logistics and operations in the country.

PetroVietnam, one of the biggest state-owned enterprises, will import US$ 600 million of United States power-generating plant hardware.

The Vietnamese government has been moving closer to the private sector in the wake of major losses and scandals at several state enterprises.

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