Vietnam Airlines agrees to order 50 of Boeing's 737 MAX planes

Investing.com -- Boeing and Vietnam Airlines have announced that the carrier has made a commitment to order 50 of the U.S. planemaker's 737-8 jets in a deal reportedly worth $7.8 billion.

The White House confirmed the value of the agreement on Monday, according to Reuters. Shares in Boeing (NYSE:BA) edged down in early trading in New York.

Boeing quoted officials from the U.S. and Vietnam as saying that the move will bolster jobs in both countries and strengthen their "bilateral economic partnership."

Vietnam is seen as one of the world's fastest growing aviation markets, with data from the International Air Transport Association projecting that it will serve 150 million air passengers by 2035. In a statement, Boeing Senior Vice President Brad McMullen said its 737 MAX family of planes will help Vietnam Airlines meet this demand domestically and in the broader Southeast Asia region.

Vietnam Airlines Chairman Dang Ngoc Hoa added: "The new narrow-body fleet will allow us to foster our overall development and extend our high-quality service on Vietnam Airlines' domestic and Asian routes, as well as modernize our fuel-efficient fleet."

The announcement comes as U.S. President Joe Biden is visiting Hanoi following his attendance of the G20 summit of world leaders in India. During the trip, the Biden administration has revealed other deals, including plans for Microsoft (NASDAQ:MSFT) to bring "generative AI-based" solutions to Vietnam. Chipmaker Nvidia (NASDAQ:NVDA), meanwhile, is partnering with several Vietnamese companies on AI.