Latest news with #Vietcombank
Time Business News
2 days ago
- Business
- Time Business News
A Backpacker's Guide to Spending Dong Without Stress
If you've ever handled a Vietnamese banknote, you know the feeling – a wallet full of bills in the hundreds of thousands. The Vietnamese Dong might look overwhelming at first, but once you understand it, it becomes surprisingly easy to manage – and even kind of fun. So, if you're exploring the busy streets of Hanoi, riding scooters through Da Nang, or sipping coffee in the alleys of Ho Chi Minh City, spending Dong wisely can help you stretch your trip without feeling like you're constantly budgeting. This guide gives you everything you need to know – from daily costs to tips on how to avoid common currency mistakes – so you can focus on the adventure, not the math. Keep in mind that these things change constantly, so always check the prices before your trip. The Vietnamese Dong (VND) is one of the least valued currencies in the world – and that's not a bad thing. At the time of writing, 1 USD is equal to around 25,000 VND, which means even a basic meal might cost 30,000 or 50,000 Dong. You'll see bills ranging from 1,000 VND all the way up to 500,000 VND, and yes – all the zeros can blur together at first. But you'll adjust quickly. Locals often drop the 'thousand' part in conversation – for example, saying '50' when they mean 50,000 VND. Don't let the big numbers fool you. What looks expensive might actually be pocket change in your home currency. If you're arriving at a major airport like Noi Bai (Hanoi) or Tan Son Nhat (Ho Chi Minh City), you'll find currency exchange counters and ATMs right after you exit customs. Exchange rates at airports are usually decent, but you'll often get better rates at gold shops or independent money changers in the city. Keep in mind: ATMs are widely available and usually safe. Stick to banks like Vietcombank, Techcombank, or BIDV. are widely available and usually safe. Stick to banks like Vietcombank, Techcombank, or BIDV. Cash exchange gives better rates if you bring crisp USD or EUR bills. gives better rates if you bring crisp USD or EUR bills. Avoid exchanging Dong before your trip – you'll get a worse rate outside Vietnam. Always ask for smaller bills when possible. Many local vendors and cafés don't carry much change for 500,000 VND notes. Vietnam is famously budget-friendly. You can easily get by on $20–25 USD per day (about 500,000–600,000 VND) without sacrificing meals, sightseeing, or comfort. Here's what an average day of spending might look like: Street food breakfast (banh mi or pho): 20,000–40,000 VND 20,000–40,000 VND Vietnamese iced coffee (cà phê sữa đá): 15,000–25,000 VND 15,000–25,000 VND Local lunch (com tam, bun cha, or noodles): 30,000–50,000 VND 30,000–50,000 VND Entrance to museums or attractions: 20,000–50,000 VND 20,000–50,000 VND Snack (spring rolls, sugarcane juice): 10,000–20,000 VND 10,000–20,000 VND Dinner at a casual eatery: 40,000–70,000 VND 40,000–70,000 VND Bed in a hostel dorm: 150,000–250,000 VND Even with transportation and bottled water added in, you'll still stay under 600,000 VND in most cities. The most common issue travelers run into? Confusing the bills. The 20,000 VND and 500,000 VND notes are similar shades of blue and can easily get mixed up. Here's how to avoid headaches: Take a few minutes to memorize the colors and values of each bill. Keep high-value notes in a separate part of your wallet. Always count your change – especially in markets or taxi rides. Don't hand over a big note without confirming the price first. Pro tip: Never rely solely on your card. Many small shops, food stalls, and even some hotels are cash-only. If you're a foodie on a budget, Vietnam is a dream. Some of the best meals come from plastic stools on the sidewalk. For the price of a coffee back home, you can get: Bánh mì (Vietnamese sandwich): ~25,000 VND ~25,000 VND Bún bò Huế (spicy beef noodle soup): ~40,000–50,000 VND ~40,000–50,000 VND Gỏi cuốn (fresh spring rolls): ~10,000 VND each ~10,000 VND each Cà phê sữa đá (iced coffee with condensed milk): ~20,000 VND These aren't snacks – they're real, hearty meals that keep you full for hours. And because the portions are lighter, you can try more things throughout the day without overdoing it. Bargaining is a normal part of everyday life in Vietnam – especially in markets, tourist areas, and smaller towns. Locals do it all the time, and vendors expect a bit of friendly negotiation. If you're new to it, don't feel shy or rude. As long as you stay polite and respectful, it's all part of the experience. You should negotiate: At markets when buying clothes, souvenirs, or local crafts With moto-taxi drivers, unless you're using an app like Grab For tours or day trips, especially in beach towns or rural areas You shouldn't bargain: In restaurants, food stalls, or cafés – prices are usually fixed and already low At convenience stores, supermarkets, or pharmacies When prices are clearly posted or printed – especially in more modern shops When you do bargain, start with a smile. Offer a fair counterprice, and keep things light. Vendors often give you a 'tourist price' first, expecting a little back-and-forth. If they won't budge, it's totally fine to thank them and walk away – many times, they'll call you back with a better offer. It might feel awkward the first few times, but once you try it, you'll see it's not confrontational – it's almost a game. And when done right, it can even be fun. Getting around Vietnam is cheap and straightforward. Here are the most common ways and their prices: Bus fare in cities: 5,000–7,000 VND 5,000–7,000 VND GrabBike or GrabCar (ride-hailing app): 10,000–50,000 VND for short trips 10,000–50,000 VND for short trips Intercity bus: 100,000–300,000 VND depending on distance 100,000–300,000 VND depending on distance Scooter rental (per day): 100,000–150,000 VND Download Grab or Be apps – they're reliable, priced fairly, and safer than negotiating directly with taxi drivers. Once you get used to the Vietnamese Dong, managing your money gets easier – but a few daily habits can make a big difference, especially on a tight travel budget: Carry small notes like 10,000, 20,000, and 50,000 VND. Many street vendors won't have change for a 500,000 note, especially in the morning. like 10,000, 20,000, and 50,000 VND. Many street vendors won't have change for a 500,000 note, especially in the morning. Separate your big bills . Keep 200,000 and 500,000 notes tucked away for hotels or transport, and use smaller ones for food and quick buys. . Keep 200,000 and 500,000 notes tucked away for hotels or transport, and use smaller ones for food and quick buys. Break large bills early in the day at a minimart or café. It's less stressful than trying to do it in a rush at a food stall. in the day at a minimart or café. It's less stressful than trying to do it in a rush at a food stall. Track your spending with a quick phone note. Even a rough list helps you stay on budget and avoid unnecessary ATM fees. with a quick phone note. Even a rough list helps you stay on budget and avoid unnecessary ATM fees. Withdraw wisely . ATMs are common in cities but may charge 30,000–50,000 VND per transaction. Take out enough for a few days and stick with major banks like Vietcombank or BIDV. . ATMs are common in cities but may charge 30,000–50,000 VND per transaction. Take out enough for a few days and stick with major banks like Vietcombank or BIDV. Keep a small USD stash just in case. $20–$50 can help in an emergency if your card fails or ATMs are down. With just a little prep, you'll avoid the most common money hassles – and spend more time enjoying Vietnam, not counting bills in the street. Traveling with the Vietnamese Dong might feel awkward at first, but it gets easier fast. Once you get familiar with the bills, the prices, and the rhythm of the local economy, you'll start to realize just how far your budget can go. You don't need a big wallet to have big experiences in Vietnam. The real value comes from the food you try, the people you meet, and the everyday discoveries that make the country feel special. And luckily, most of those things cost far less than you'd expect. TIME BUSINESS NEWS
Yahoo
07-07-2025
- Business
- Yahoo
Vietnam Prepaid Card and Digital Wallet Market Report 2025: Vietnamese Banks Launch Domestic Prepaid Programs to Boost Financial Inclusion
Vietnam's prepaid card and digital wallet market is set to grow 26.6% annually, reaching US$7.19 billion by 2025. Driven by e-commerce growth, government cashless initiatives, and fintech innovations, the market thrives. Key players like Vietcombank and MoMo dominate, with trends indicating a continued shift to digital. Vietnamese Prepaid Card and Digital Wallet Market Dublin, July 07, 2025 (GLOBE NEWSWIRE) -- The "Vietnam Prepaid Card and Digital Wallet Market Intelligence and Future Growth Dynamics Databook - Q2 2025 Update" report has been added to prepaid card and digital wallet market in Vietnam is expected to grow by 26.6% on annual basis to reach US$ 7.19 billion in 2025. Vietnam's prepaid card and digital wallet market has experienced robust growth during 2020-2024, achieving a CAGR of 30.7%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 23.1% during 2025-2029. By the end of 2029, the prepaid card and digital wallet market is projected to expand from its 2024 value of US$ 5.68 billion to approximately US$ 16.52 billion. Key Trends and Drivers in the Vietnam Prepaid Cards SectorThe prepaid card market in Vietnam is set for continued expansion, driven by increasing digital payment adoption, deeper integration with digital wallets, and the rise of domestic prepaid card programs. As e-commerce continues to grow and the government pushes for a cashless economy, prepaid cards will play an increasingly important role in providing secure and efficient payment solutions. Financial institutions and fintech companies can capitalize on this growth by developing innovative offerings that align with consumer preferences and regulatory the next two to four years, the competitive landscape is expected to evolve as more financial service providers enter the market, leveraging advancements in fintech and expanding digital payment infrastructures. Strengthening the NAPAS network and the broader acceptance of prepaid cards across sectors will contribute to greater financial inclusion and a shift away from cash-based transactions. As the prepaid card ecosystem matures, regulatory developments and strategic collaborations will shape the market, ensuring sustainable growth and increased adoption among Vietnamese Growth of Digital Payment Adoption Vietnam's rapid adoption of digital payments is transforming the financial landscape, with prepaid cards emerging as a preferred payment method among consumers. The increasing reliance on digital transactions, driven by expanding e-commerce activities and heightened security concerns, has accelerated the shift from cash-based payments. Prepaid cards offer a secure and convenient alternative, particularly for online purchases, where consumers seek to protect their primary banking details while maintaining financial flexibility. Government initiatives play a key role in fostering this transition by actively promoting cashless transactions and digital financial inclusion. Policies aimed at reducing cash dependency and regulatory support for digital wallets and fintech services have created an environment conducive to prepaid card growth. As prepaid cards become more accessible and integrated with digital payment solutions, their usage is expected to rise across various consumer segments. Integration of Prepaid Cards with Digital Wallets Integrating prepaid cards with digital wallets in Vietnam enhances the convenience and accessibility of cashless transactions. Consumers increasingly opt for digital payment solutions to manage funds efficiently while maintaining security. As a result, prepaid card providers are embedding their services into digital wallets, enabling users to conduct seamless transactions across various online and offline channels. Technological advancements in fintech are a key driver of this trend, allowing for improved security, interoperability, and ease of use. Consumers, particularly younger demographics, demand quicker and more convenient payment solutions, prompting financial service providers to expand digital wallet functionalities. The ability to link prepaid cards to digital wallets gives users greater control over their spending while eliminating reliance on traditional banking services. Over the next two to four years, the growing integration of prepaid cards with digital wallets will create a more interconnected financial ecosystem. As adoption increases, businesses and financial institutions will likely enhance digital payment solutions to capture a larger market share. This shift will cater to evolving consumer preferences and strengthen Vietnam's digital economy by encouraging greater participation in cashless transactions. Emergence of Domestic Prepaid Card Programs Vietnamese banks are increasingly launching domestic prepaid card programs in collaboration with local partners to strengthen the country's payment ecosystem. These initiatives aim to provide consumers with cost-effective, locally managed prepaid card solutions that reduce reliance on international payment networks. By promoting domestic payment infrastructure, these programs support Vietnam's broader strategy of enhancing financial accessibility and developing a more self-sufficient financial system. The expansion of the National Payment Corporation of Vietnam (NAPAS) network has been a key driver in facilitating domestic prepaid card issuance. Banks and financial institutions are leveraging this network to introduce prepaid card solutions with lower fees than international options, making them a viable choice for cost-conscious consumers. Additionally, businesses are increasingly adopting domestic prepaid cards for payroll, government disbursements, and targeted financial programs, further driving market growth. Over the next two to four years, domestic prepaid cards are expected to gain a larger market share as banks continue to enhance their offerings. Strengthening the NAPAS network and expanding prepaid card functionalities will contribute to broader financial inclusion, allowing more individuals and businesses to access formal financial services. As adoption rises, domestic prepaid cards will play a crucial role in Vietnam's digital financial landscape, reinforcing the shift towards a cashless economy. Competitive Landscape of the Vietnam Prepaid Card MarketVietnam's prepaid card market is witnessing a transformation fueled by digital payment growth, competitive innovation, and supportive regulatory measures. Established financial institutions and new fintech entrants actively invest in prepaid solutions to cater to the growing consumer demand for cashless increasing consumer adoption and regulatory backing, prepaid cards will continue to expand their role in Vietnam's financial ecosystem. Companies prioritizing technological innovation, security enhancements, and strategic partnerships will be best positioned to capture market opportunities and maintain a competitive edge in the evolving prepaid card Market Dynamics Vietnam's prepaid card market has expanded significantly due to the rising adoption of digital payments and financial services. With increasing demand for cashless transactions, prepaid cards have gained traction across different sectors, including retail, corporate payroll, and travel. The market's rapid growth is also fueled by the convenience and security of prepaid cards, particularly in online transactions where consumers seek greater control over their spending. The widespread acceptance of prepaid cards across industries and the growing integration with digital wallets have contributed to this growth. As more businesses and financial institutions introduce prepaid solutions, the market is evolving to meet the changing needs of both consumers and enterprises. Key Players and Market Share The prepaid card market in Vietnam is dominated by established banks and fintech companies competing to provide innovative payment solutions. Leading financial institutions such as Vietcombank, BIDV, and Sacombank have leveraged their extensive networks to offer various prepaid card products catering to individual consumers and businesses. These banks continue to develop their digital offerings to align with the growing trend of cashless payments. In addition to traditional banks, fintech firms like MoMo and ZaloPay have entered the market, introducing prepaid card solutions tailored for tech-savvy consumers. These companies have disrupted the competitive landscape by offering flexible, user-friendly digital payment options. Their presence has intensified competition, pushing both fintechs and traditional banks to enhance their prepaid card services through digital innovations. Recent Launches and Partnerships Strategic partnerships and acquisitions have shaped Vietnam's prepaid card industry. Companies are collaborating to expand their product offerings and strengthen their market presence. A notable example is Got It, a key player in the gift card sector, which has reported significant revenue growth, demonstrating the increasing demand for digital prepaid solutions. In 2023, Got It generated approximately US$ 6.3 million in revenue, a 26.8% increase from the previous year. The company now focuses on digital transformation by expanding from offline store vouchers to integrated digital prepaid solutions for brand partners. Projections for 2024 indicate a 49% revenue increase, driven by its shift to online payment platforms and partnerships with businesses to enhance digital gifting solutions. Anticipated Market Evolution (Next 2-4 Years) The market will evolve as financial institutions and fintech companies innovate to attract a growing customer base. Digital transformation efforts, particularly in mobile payments and e-commerce, will further drive the adoption of prepaid cards. As competition intensifies, companies will focus on differentiating their prepaid card offerings through enhanced security, loyalty programs, and deeper integration with digital wallets. Strategic partnerships and mergers between banks and fintech firms will likely increase, leading to new product innovations and a more interconnected payment ecosystem. The evolving regulatory framework will also be critical in shaping market dynamics, ensuring a secure and competitive environment for prepaid card providers. Regulatory Changes Vietnam's regulatory landscape has evolved to support the transition towards a cashless economy. The government has implemented new policies promoting prepaid card usage and digital transactions in the past year. These measures include tax incentives for businesses adopting electronic payments and regulatory frameworks to support fintech companies entering the prepaid card market. Additionally, authorities have introduced stricter security regulations to protect consumers using prepaid cards for online transactions. These regulatory updates aim to foster trust in prepaid financial products and encourage wider adoption across industries. The government's continued push for financial inclusion is expected to further accelerate the prepaid card market's growth in the coming years. This report provides a detailed data-centric analysis of the prepaid card and digital wallet industry in Vietnam, covering market opportunities and analysis across a range of prepaid card and digital wallet domains. Key Attributes: Report Attribute Details No. of Pages 159 Forecast Period 2025 - 2029 Estimated Market Value (USD) in 2025 $7.19 Billion Forecasted Market Value (USD) by 2029 $16.52 Billion Compound Annual Growth Rate 23.1% Regions Covered Vietnam Report ScopeThis report offers an in-depth, data-driven examination of prepaid payment instruments, focusing on expenditures via prepaid cards and digital wallets within both retail and corporate consumer sectors. It also presents an overview of consumer behavior and retail spending patterns in Vietnam. The report includes a detailed breakdown of key market segments for each country. With over 80+ country-level key performance indicators (KPIs), the report provides a thorough understanding of market dynamics in the prepaid card and digital wallet sectors. Vietnam Prepaid Payment Instrument Market Size and Forecast Vietnam Digital Wallet Market Size and Forecast Vietnam Digital Wallet Market Size and Forecast by Key Segments Vietnam Digital Wallet Retail Spend Dynamics Vietnam Prepaid Card Industry Market Attractiveness Vietnam Open Loop Prepaid Card Future Growth Dynamics Vietnam Closed Loop Prepaid Card Future Growth Dynamics Vietnam Prepaid Card Consumer Usage Trends Vietnam Prepaid Card Retail Spend Dynamics Vietnam General Purpose Prepaid Card Market Size and Forecast Vietnam Gift Card Market Size and Forecast Gift Card Market Size and Forecast by Functional Attribute Gift Card Market Size and Forecast by Consumer Segments Gift Card Market Share Analysis by Retail Categories Vietnam Entertainment and Gaming Prepaid Card Market Size and Forecast Vietnam Teen and Campus Prepaid Card Market Size and Forecast Vietnam Business and Administrative Expense Prepaid Card Market Size and Forecast Vietnam Payroll Prepaid Card Market Size and Forecast Vietnam Meal Prepaid Card Market Size and Forecast Vietnam Travel Forex Prepaid Card Market Size and Forecast Vietnam Transit and Tolls Prepaid Card Market Size and Forecast Vietnam Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast Vietnam Fuel Prepaid Cards Market Size and Forecast Vietnam Utilities, and Other Prepaid Cards Market Size and Forecast Vietnam Virtual Prepaid Card Industry Market Attractiveness Vietnam Virtual Prepaid Card Market Size by Key Categories For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Vietnamese Prepaid Card and Digital Wallet Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Malay Mail
09-06-2025
- Business
- Malay Mail
Visa introduces Click to Pay with leading banks and payment facilitators in Vietnam, transforming the online shopping experience
Vietnam is first market in Southeast Asia to embrace Click to Pay, offering unmatched convenience, security, and efficiency in e-commerce transactions. Consumers can look for the Click to Pay icon at participating online merchants both domestically and abroad to enjoy a faster, more secure, and convenient checkout experience. [1] The Green Shoots Radar study is conducted quarterly by Visa to track consumer sentiments across financial services, commerce, travel, and other categories. The total sample size is 14,250 respondents across 14 Asia-Pacific countries, including Vietnam, with male and female participants aged 18 to 65 years old. [2] Visa Risk Datamart, Global FY22 Q1-A4 Token Fraud Rate vs PAN Fraud Rate by PV for merchants with over 1,000 CNP token transactions per month per country. Merchant's individual results may vary. [3] VisaNet, Oct-Dec 2022, Visa credit and debit card-not-present transactions for tokenized vs non-tokenized credentials in the AP region. Authorisation rate is defined as approved authorisations divided by total authorization attempts based upon a first attempt of a unique transaction. HCMC, VIETNAM – Media OutReach Newswire – 9 June 2025 – Visa, a world leader in digital payments, is introducing its issuer-offered Click to Pay solution to the market. Military Commercial Joint Stock Bank (MB), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), JSC Bank for Foreign Trade of Vietnam (Vietcombank), Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), and Vietnam Prosperity Joint-Stock Commercial Bank (VPBank) have been the pioneer banks in adopting the solution. For Techcombank and VPBank, Visa cardholders can experience the solution starting today. On the acceptance side, Click to Pay has been adopted by Ngan Luong Payment Gateway JSC (Alepay Gateway), and VietUnion Online Services Corporation (Payoo), Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank), and Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank).Click to Pay simplifies online payments by allowing cardholders to complete transactions with just a few clicks, without needing to enter lengthy card and shipping information. It provides consumers with a fast, secure and convenient checkout experience with global acceptance, as Click to Pay is now enabled in even more places where cardholders want to shop to Visa's Green Shoots Radar survey, which surveyed 1,000 Vietnamese online, 99% of surveyed consumers had shopped online in the last 12 months[1], highlighting the rapid expansion of Vietnam's e-commerce sector. By using an email address or mobile number to verify identity, shoppers can bypass the traditional checkout process, eliminating the need to enter extensive details. Additionally, Click to Pay utilizes cutting-edge technology and global security standards to enhance the safety of information and transactions, providing cardholders with greater peace of mind when making online payments. Click to Pay not only saves time for customers but also reduces cart abandonment rates, benefiting both consumers and retailers."Visa is committed to driving innovation in the payments landscape and enabling a seamless, secure, and convenient online shopping experience for consumers. With e-commerce being so ubiquitous in everyday Vietnamese life and in line with the Vietnamese government's digitization goals, we are excited to bring this innovative solution to Vietnamese consumers through the support of our key banking partners. Click to Pay with Visa will transform the way people shop online, preparing them for the future of a more connected digital economy,"Click to Pay is now available to Techcombank and VPBank Visa cardholders to enroll via the issuer's banking app or participating online merchants. Consumers can look for the Click to Pay icon at participating online merchants both domestically and abroad to enjoy a faster, more secure, and convenient checkout Vietnam, Visa has partnered with Payoo – a payment platform serving as a key intermediary for online retail networks – to integrate Click to Pay across Payoo's merchant ecosystem. Participating partners include KOI Thé, UrBox Trading, AEONESHOP, Galaxy Cinema, ACFC, Maison Online, NEM, Elsa English, GearVN, Vietrace365, Hop on Hop off, among others. In the near future, Visa cardholders who use Click to Pay at Payoo-affiliated merchants will enjoy exclusive promotional offers, helping to accelerate the shift toward a more seamless and cashless shopping on platforms such as LG Electronics Vietnam, British Council, PVI Insurance, PropertyGuru Vietnam ( Mai Nguyen Electronics, and Triumph International Vietnam can enjoy frictionless transactions, as payments are processed through the Alepay Gateway, provided by Ngan Luong Payment Gateway JSC. More merchants are expected to participate in the coming to Pay is designed to transform digital checkouts and meet EMVCo standards. It utilises the Visa Token Service (VTS) to provide multiple layers of advanced security, enhancing authorization rates and reducing fraud in digital commerce. By replacing sensitive card information, such as the 16-digit Primary Account Numbers (PANs), with tokens, VTS can reduce fraud by 58%[2] and increase authorization rates by an average of 2.5% in Asia Pacific[3], compared to PAN-based card-not-present (CNP) transactions. Click to Pay with Visa simplifies the checkout experience for customers – it's like contactless payments in-store, but for online #Visa #ClickToPay The issuer is solely responsible for the content of this announcement. About Visa Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at
CNA
24-04-2025
- Business
- CNA
Vietnam Airlines to finalise 50 Boeing narrow-body order soon, sources say
HANOI : Flag carrier Vietnam Airlines is close to finalising a provisional order for 50 Boeing 737 MAX jets that it made in 2023, industry sources said, as it signed a funding arrangement for 50 single-aisle planes on Thursday. The airline said it had signed a memorandum of understanding with the country's top lender Vietcombank for funding to purchase 50 narrow-body planes, without naming the manufacturer. Vietnam Airlines signed an initial agreement with U.S. planemaker Boeing in 2023 for 50 of the firm's single-aisle 737 MAX aircraft. Vietnamese and U.S. officials have said repeatedly that purchases of U.S. planes would be crucial to reduce Vietnam's large trade surplus with the United States, which the Trump administration has said was a key factor in the 46 per cent tariffs it initially imposed on the country. The carrier, which operates a mixed fleet of Boeing and Airbus aircraft, did not specify which planes it would purchase, nor the amount of funding it had agreed with Vietcombank. Boeing and Airbus referred Reuters enquiries to Vietnam Airlines. Vietnam Airlines' said the purchase was part of its fleet development strategy for the next decade. "The investment is aimed at expanding the short and medium-haul network in key markets such as Southeast Asia, Northeast Asia and domestic markets, where demand for transportation is growing rapidly and competition is increasingly fierce," the carrier said. Vietcombank has previously arranged funding for Vietnam Airlines to purchase wide-body planes, such as the Airbus A350 and Boeing 787, as well as the narrow-body Airbus A321, the statement said. Boeing has been struggling to deliver aircraft to Vietnam and other countries on schedule due to a production slowdown and global supply chain bottlenecks. However, Boeing on Wednesday said it potentially had dozens of planes available for new customers because Chinese airlines were refusing to take delivery of them as a result of Beijing's heavy retaliatory tariffs against U.S.-made goods. Earlier in April, Vietnam Airlines announced a separate non-binding deal with Citibank worth more than $560 million aimed at "strengthening the airline's operational capacity and expanding its international route network in the years ahead". Embraer, the Brazilian planemaker is in talks for the possible sale of 10 E190 narrow-body jets to Vietnam Airlines, one Brazilian official told Reuters last month.
Business Times
24-04-2025
- Business
- Business Times
Vietnam Airlines signs funding deal with Vietcombank for 50 narrow-body planes
[HANOI] Flag-carrier Vietnam Airlines said on Thursday (Apr 24) it had signed a memorandum of understanding with the country's top lender Vietcombank for funding to purchase 50 narrow-body planes. The plane purchases are part of Vietnam Airlines' fleet development strategy for the next decade, it said. 'The investment is aimed at expanding the short and medium-haul network in key markets such as South-east Asia, Northeast Asia and domestic markets, where demand for transportation is growing rapidly and competition is increasingly fierce,' Vietnam Airlines said. It did not specify which planes it would purchase nor the funding size. Vietcombank had earlier arranged funding for Vietnam Airlines to purchase wide-body planes such as Airbus A350, Boeing 787 and narrow-body Airbus A321 planes, according to the statement. The funding deal comes after Vietnamese and US officials have said repeatedly that purchases of US planes would be crucial to reduce Vietnam's large trade surplus with the United States, which the Trump administration has said was a key factor in 'reciprocal' tariffs of 46 per cent initially imposed on the country. Boeing has, however, struggled to deliver planes to Vietnam and other countries. Earlier in April, Vietnam Airlines announced a separate non-binding deal with Citibank worth more than US$560 million aimed at 'strengthening the airline's operational capacity and expanding its international route network in the years ahead'. Embraer, the Brazilian planemaker is in talks for the possible sale of 10 E190 narrow-body jets to Vietnam Airlines, one Brazilian official said last month. REUTERS
