- As part of the Vietnamese state visit to the United States, Vietnam Prime Minister Nguyen Xuan Phuc and US Commerce Secretary Wilbur Ross recognized the signings of MoU and JDA agreements with General Electric to support new gas and wind-power generation projects in Vietnam.
- In addition, CFM International1 signed engine order and services agreements with VietJet Air.
- The agreements will advance industrial technology solutions across multiple sectors and support economic growth and jobs in both countries.
<<Washington, DC >>, May 31 2017 – General Electric (NYSE: GE) today announced the signing of agreements valued at more than $2 billion to support the development of Vietnam’s energy sectors, as well as agreements valued at over $3.58 billion for new CFM International aircraft engines and maintenance support. This constitutes the largest combined set of transactions for GE in Vietnam in the company’s history.
The energy agreements, acknowledged by US Secretary of Commerce Wilbur Ross and Vietnam’s Prime Minister Nguyen Xuan Phuc during his state visit to the United States, include a Memorandum of Understanding (MoU) to co-develop 1500 megawatts (MW) new gas power plants and a Joint Development Agreement (JDA) on 800 MW Phu Cuong Wind Farm in Soc Trang. GE has been active in Vietnam for 24 years and provides more than 30 percent of Vietnam’s installed base power generation.
CFM International signed two new agreements with VietJet Air, including a maintenance support contract for the airline’s 215 LEAP-1B engines. In addition, the airline expanded its CFM-powered A321 fleet.
The agreements will include financing from GE and draw on technology and parts sourced from across GE’s US manufacturing footprint.
“Through a strong local presence, we have built long term partnerships with our customers in Vietnam to meet the country’s unique needs,” said Wouter Van Wersch, President and CEO of GE ASEAN. “Our most recent deals, which will support our US and global manufacturing operations, further reinforce the important economic, trade and investment partnership between Vietnam and the United States.”
MOU for advanced combined cycle power plants
GE and Vietnam Oil & Gas Group (Petrovietnam) signed an MOU to cooperate on the development of two 750 MW combined cycle gas turbine power plants - Mien Trung I & II – using the Blue Whale Gas Field which is the biggest gas project in Vietnam up until now, with an estimated 150 billion cubic meters of reserves (equivalent to 5.4 Tcf). The Mien Trung I Plant is expected to begin operations in 2023 and Mien Trung II in 2024. GE, with its global power development expertise, shall work with Petrovietnam to identify the latest technology solutions to provide higher efficiency, lower fuel consumption and lower emissions. The MOU with Petrovietnam, the flagship economic group of Vietnam, once again strengthens GE’s footprint in Vietnam’s energy infrastructure development.
JDA on 800MW Phu Cuong Wind Farm in Soc Trang Province
GE together with its development partners International Mainstream Renewable Power and Phu Cuong Group signed a JDA on developing the 800 MW Phu Cuong wind farm in Soc Trang province.
The deal follows a 1 GW initiative signed with the Ministry of Industry and Trade last year and is an important step in helping Vietnam to develop its significant wind power potential.
Vietjet Air Engine Order and Services Contract
CFM International signed two new agreements with VietJet Air, including a 12-year maintenance support contract for the airline’s 215 LEAP-1B engines ordered in 2016. Under the terms of the agreement, valued at $3.0 billion U.S. at list price, CFM guarantees maintenance costs for the all VietJet Air’s LEAP-1B engines that will power its fleet of 100 Boeing 737 MAX airplanes on a dollar per engine flight hour basis.
In addition, the airline expanded its CFM-powered A321 fleet with an order for 20 CFM56-5B engines to power 10 new aircraft. This agreement, which also includes a long-term maintenance agreement, is valued at $580 million US at list price.
Speaking about the deals, Mr. Gaël Méheust, CFM president & CEO, said, “We appreciate the high level of confidence these agreements show in CFM and in our ability to support VietJet over the long term. It has been an honor to be a part of the very dynamic and exciting team for the last six years. It is a privilege to know that this very special relationship will continue for many more years to come.”
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry.
Trinh Phuong Lan
Nguyen Thi Thanh Hai