Long-Awaited Deliveries Commence for VietJet's Boeing 737 MAX Fleet

Vietnamese budget carrier VietJet is poised to receive its first Boeing 737 MAX aircraft in Q3 2025, marking a significant milestone after a nine-year delay since the initial order. This long-awaited delivery is part of a broader order for 200 737 MAX jets, valued at over $25 billion, which also includes 400 Leap-1B engines from CFM International and a $300 million financing agreement. The initial order for 100 jets was placed in 2016 and doubled in 2018, but deliveries were repeatedly postponed due to the global grounding of the MAX following two fatal crashes and the subsequent COVID-19 pandemic. The first 12 aircraft are slated for delivery by the end of 2025, with the full order expected to be fulfilled over the next five years.

The handover ceremony at Boeing's factory in Seattle is anticipated to be attended by Vietnamese President Luong Cuong, underscoring the diplomatic significance of the event.

Strategic Timing Amidst U.S.-Vietnam Trade Dynamics

The commencement of VietJet's Boeing 737 MAX deliveries is intrinsically linked to ongoing efforts to rebalance trade relations between the United States and Vietnam. U.S. and Vietnamese officials have characterized VietJet's large Boeing orders as a strategic component in Hanoi's broader initiative to reduce its significant trade surplus with Washington and alleviate pressure from potential U.S. tariffs. Vietnam's trade surplus with the U.S. reached a record $123.5 billion in 2024, positioning it as the third-largest U.S. trade deficit globally.

In July 2025, a trade agreement was reached where the U.S. imposed a 20% tariff on most Vietnamese exports, considerably lower than the previously threatened 46% rate, in exchange for Vietnam granting tariff-free access for American goods. This strategic purchase of U.S.-made aircraft aims to mitigate such tariffs and strengthen economic ties.

Commercial and Geopolitical Implications

For Boeing (BA), this delivery represents a pivotal breakthrough in Southeast Asia, a region projected to require 4,720 new aircraft over the next two decades. The move is a direct challenge to Airbus, which currently holds an 86% market share among Vietnamese airlines. Executing this large order could positively impact Boeing's order book and investor confidence, especially after past delivery issues. Analysts have assigned Boeing an average price target of $259.83, suggesting a potential upside of 21.39% from its current stock value of $214.05.

For VietJet (VJC.VN), the integration of Boeing aircraft marks a significant diversification from its historically Airbus-exclusive fleet. This strategy aims to enhance operational flexibility, reduce costs through the 737 MAX's fuel efficiency and range, and bolster its competitive position. The deal also includes provisions for its Thai subsidiary, Thai Vietjet, which will receive 50 of these aircraft starting in October 2025.

More broadly, the U.S.-Vietnam trade agreement and the associated aircraft purchases are seen as embedding American aerospace standards in Southeast Asia and could set a precedent for other nations negotiating trade terms with the U.S. The Vietnamese stock market reacted positively to the tariff news, with the benchmark VN-Index nearing the 1,400 mark. However, the IMF projects Vietnam's economic growth to slow to 6.5% in 2025 due to the full-year effect of the new U.S. tariffs, indicating that while immediate market reactions may be optimistic, long-term economic adjustments are anticipated.

Looking Ahead

The successful delivery of the 737 MAX jets will likely be closely watched as an indicator of progress in U.S.-Vietnam trade relations. Future developments will hinge on ongoing trade negotiations and Vietnam's efforts to implement reforms and enhance its trade network to further mitigate tariff impacts. The aerospace sector in Southeast Asia remains a key growth area, and Boeing's renewed presence through deals like this signifies intensifying competition and strategic market positioning against rivals like Airbus and China's COMAC C919.