On April 2, 2025, the US President announced a tariff plan that includes a basic tax rate of 10% and a countervailing tax rate applied to specific trading partners, with Vietnam facing a 46% tax rate.
The basic and countervailing tax rates came into effect on April 5 and 9, respectively. A special envoy, Deputy Prime Minister Ho Duc Phoc, traveled to the US to finalize the negotiation details, aiming to reach an agreement that serves the interests of both countries’ citizens and businesses.
Ahead of these crucial negotiations, on April 7, the Government Office sent an urgent dispatch regarding Vietnam Airlines’ narrow-body aircraft investment project to the ministers of Finance and Construction and the Chairman of Vietnam Airlines’ Board of Directors.
In this dispatch, Deputy Prime Minister Ho Duc Phoc instructed the Ministry of Finance and the Ministry of Construction to carefully consider Vietnam Airlines’ proposals and provide specific feedback on each suggested point by April 7, 2025.
Previously, the Ministry of Finance had provided guidance to Vietnam Airlines on the procedures, processes, and authorities responsible for deciding on the investment project for 50 narrow-body aircraft.
As per the Ministry of Finance, this project, with a total estimated value of approximately VND 92,800 billion (roughly USD 3.7 billion), falls under the jurisdiction of the General Meeting of Shareholders, as it is an investment by a state-owned enterprise (the state holds 86.34% of Vietnam Airlines’ charter capital).
Due to the scale and nature of the project, the Ministry of Finance requested that Vietnam Airlines report and seek approval from the Prime Minister regarding the project’s implementation strategy. Vietnam Airlines will be held accountable for the preparation, submission, appraisal, and execution of the project.
It is understood that Vietnam Airlines has been planning to expand its narrow-body fleet for several years to meet future transportation demands and replace older A321 Neo aircraft to enhance operational efficiency. However, this process encountered obstacles due to the pandemic and existing regulations.
This project is proposed by Vietnam Airlines to meet the demand for narrow-body aircraft from 2025 to 2035, ensuring the airline’s fleet development plan through 2035 and its vision for 2040. If implemented as planned, the airline can meet the requirements for the feasibility of capital mobilization and aircraft delivery from manufacturers (Boeing offers B737Max delivery from 2028, while Airbus can deliver from 2030).
With the addition of 50 aircraft through this project, Vietnam Airlines’ total fleet size could increase to 137 planes by 2030 and 169 by 2035, enabling the carrier to transport approximately 47.9 million passengers.
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