Vietjet (VJC) and CFM Sign LOI for LEAP Engine MRO in Vietnam

Overview

Vietjet (VJC) and CFM International signed a Letter of Intent (LOI) for CFM to advise on developing LEAP engine maintenance, repair, and overhaul (MRO) capabilities in Vietnam. The partnership supports Vietjet’s fleet expansion and aims to build a high-tech aviation industrial base in the country.

Key Facts

• Vietjet and CFM International signed a Letter of Intent for CFM to propose a consulting agreement to support Vietjet in assessing engine MRO demand, technical capabilities, infrastructure, equipment, and human resources.
• The assessment will serve as a basis for the two parties to consider developing MRO solutions for the LEAP engine line in Vietnam.
• CFM International has partnered with Vietjet since 2014, when the airline received its first Airbus A320ceo aircraft using CFM56 engines.
• Vietjet currently operates 50 Airbus A320ceo and A321ceo aircraft equipped with CFM56-5B engines.
• The relationship is entering a new phase with Vietjet’s program of 200 Boeing 737-8 aircraft, including 737-8 and 737-8-200 versions, using CFM LEAP-1B engines.
• Gaël Méheust, President and CEO of CFM International, said Vietnam is one of the world’s most dynamic aviation markets.
• Nguyễn Thanh Sơn, CEO of Vietjet, described the cooperation as an important step in building a comprehensive aviation ecosystem in Vietnam.

What Happened

According to the Letter of Intent, CFM International is expected to propose a consulting agreement to support Vietjet in comprehensively evaluating engine MRO demand, technical capabilities, infrastructure, equipment, and human resources. This assessment will serve as the foundation for the two parties to consider developing MRO solutions for the LEAP engine line in Vietnam. The LOI was signed by representatives of both companies, as stated in the announcement.

The partnership builds on a relationship that began in 2014 when Vietjet received its first Airbus A320ceo aircraft powered by CFM56 engines. Vietjet currently operates 50 Airbus A320ceo and A321ceo aircraft with CFM56-5B engines. The collaboration is now entering a new phase with Vietjet’s order for 200 Boeing 737-8 aircraft, including 737-8 and 737-8-200 variants, which use CFM LEAP-1B engines. Gaël Méheust, President and CEO of CFM International, expressed confidence in continuing the successful partnership with Vietjet through the assessment of potential engine MRO capabilities in Vietnam. Nguyễn Thanh Sơn, CEO of Vietjet, highlighted the cooperation as a key step in building a comprehensive aviation ecosystem and developing a new-generation engine MRO capability, training internationally qualified engineers, and integrating Vietnam deeper into the global aviation value chain.

Market Context

Vietjet (VJC) is listed on the Ho Chi Minh Stock Exchange (HOSE) and closed at VND 124,700 on September 11, 2026. The aviation sector in Vietnam has been recovering strongly, with increasing passenger demand and fleet expansion plans. This partnership aligns with the broader trend of Vietnamese airlines investing in self-reliance for maintenance and engineering services to reduce costs and improve operational efficiency. The move also supports the government’s goal of developing high-tech industries and enhancing Vietnam’s position in the global aviation supply chain.

Strategic Significance

For long-term investors, this LOI signals Vietjet’s strategic intent to vertically integrate its operations by developing in-house MRO capabilities for LEAP engines, which will power its future fleet of 200 Boeing 737-8 aircraft. By building local MRO capacity, Vietjet could reduce dependence on foreign service providers, lower maintenance costs, and improve turnaround times. Additionally, the initiative positions Vietnam as a potential regional hub for aviation MRO services, creating opportunities for skilled job creation and technology transfer. The partnership with CFM, a leading engine manufacturer, provides technical credibility and access to global best practices, which could enhance Vietjet’s operational reliability and cost structure over the long term.

What to Watch

• Formal signing of the consulting agreement between Vietjet and CFM International.
• Details on the scope, timeline, and investment for the MRO feasibility study.
• Vietjet’s progress on its Boeing 737-8 fleet deliveries and LEAP engine induction.
• Any updates on Vietnam’s aviation infrastructure development or policy support for MRO activities.
• CFM’s assessment findings and subsequent investment decisions by Vietjet.