Govt inks pact with Vietjet Airlines to boost air transport links

The Ministry of Public Works and Transport has forged a significant agreement with Vietnam’s Vietjet Airlines to enhance air transport connectivity between the two nations, an initiative that is expected to generate more than 2,500 jobs in the aviation sector.

President Thongloun Sisoulith (seated right) and the President of Vietnam, To Lam (seated left), witness the signing of a Memorandum of Understanding on aviation cooperation between Laos’ Ministry of Public Works and Transport and VietJet Air.

The announcement was made at a ceremony held in Vientiane on July 11, attended by the Secretary General of the Lao People’s Revolutionary Party Central Committee and Lao President, Mr Thongloun Sisoulith, and the President of Vietnam, Mr To Lam, along with high-ranking officials from both countries, according to the Pasaxon newspaper.
Under the agreement, Vietjet Airlines will collaborate with the Lao Department of Civil Aviation to implement aviation projects and expand air transportation activities within Laos.
This expansion includes a plan to establish the airline’s Maintenance Repair Overhaul (MRO) facility in Laos, in partnership with the Vietjet Aviation Training Institute, to oversee the international-level training of new employees, creating up to 2,500 new jobs.
The Lao Civil Aviation Department will support the project with administrative, legal and facility coordination, ensuring smooth implementation.
This partnership is set to introduce affordable flight options and high-quality services for both Lao and foreign travellers.
The agreement was one of seven Lao-Vietnamese cooperation documents inked during the two-day state visit by the Vietnamese President and his high-level delegation to Laos last week.
These cooperation pacts include a Memorandum of Understanding on the establishment of a citizen and ID (identification card) management system in Laos.
The two sides also signed an extradition treaty and a cooperation agreement between their Justice Ministries, an amended concession agreement relating to the Sekhaman III hydropower project, an amended agreement on the excavation and processing of bauxite and the construction of an aluminium manufacturing plant in Dakcheung district, Xekong province, and an amended agreement on the survey and exploration of antimony.
In 2023, Vietjet, in collaboration with Lao Airlines, opened a regional aircraft training centre and launched the first direct flight between Vientiane and Ho Chi Minh City, providing a convenient new travel option between the two countries.
Currently, Vietjet Airlines operates four return flights a week between Vientiane and Ho Chi Minh City, with a flight time of 1 hour and 45 minutes.
Vietnam remains one of Laos’ top investors and trading partners, with 255 investment projects valued at US$5.5 billion. These projects span various sectors, including transport, tourism, and science and technology, fostering trade, sustainable development, and shared prosperity for both nations and the region.

By Times Reporters
 (Latest Update July 18, 2024)