Boeing landed a $7.8 billion deal with Vietnam Airlines, the White House announced as President Joe Biden's visited with Prime Minister Pham Minh Chinh in Hanoi. Boeing stock closed a fraction lower Monday.
Vietnam Airlines will purchase 50 of the Boeing 737 Max jets, President Biden said during a roundtable with Vietnamese officials and executives from the aviation, semiconductor and tech sectors. Vietnam Airlines currently has a fleet of 100 aircraft, including 15 Boeing 787 Dreamliners. The new jets will replace planes more than a decade old, Barron's reported citing Vietnam state media.
Meanwhile, the deal will support over 33,000 direct and indirect jobs in the U.S., according to the statement.
Biden's visit upgraded the U.S. strategic relationship with Vietnam, a key element in the U.S. regional approach to managing U.S.-China relations. Leaders of Vietnam's Communist Party officially raised the country's ties to the United States to the highest level in Hanoi's diplomatic hierarchy, equivalent to those it has with Russia and China, according to the New York Times.
"Today, we can trace a 50-year arc of progress in the relationship between our nations, from conflict to normalization," Biden said at a news conference after a meeting with Nguyen Phu Trong, the general secretary of the Communist Party of Vietnam. "This is a new elevated status that will be a force for prosperity and security in one of the most consequential regions in the world."
Semiconductors and artificial intelligence were also discussed during the Vietnam-U.S. Innovation & Investment Summit. Synopsys will collaborate with the Saigon Hi-Tech Park to launch a semiconductor design and incubation center while Marvell Technology plans to establish a semiconductor design center in Ho Chi Minh City.
In addition, Microsoft said that it plans to make generative AI solutions tailored to Vietnam and emerging markets. Nvidia partnered with Vietnam-based firms to develop AI in the country.
Boeing Stock
Boeing stock eased about 1% early Monday. Shares retreated the last few weeks after hitting their 2023 high of 243.10 on Aug. 1, following a late July breakout. BA stock swung about 11% higher so far this year.
Microsoft stock edged up 1.1% Monday. Nvidia shares pared early losses to 0.9%.
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