The venture, to be set up using Vietnam Airlines facilities at Hanoi's Noi Bai International Airport and HCMC's Tan Son Nhat International Airport, would provide airframe maintenance, repair and overhaul services to the national flag carrier and other airlines.

"The establishment of a joint venture will bring more aircraft and added value to Vietnam. It will help to improve the technical level of the domestic aircraft maintenance industry as well as the competitiveness of the national airline," said Vietnam Airlines CEO Duong Tri Thanh.

This is the second partnership between Vietnam Airlines and ST Engineering, the parent company of STEA, which is one of the world’s largest aircraft maintenance companies.

In September last year, Vietnam’s first aircraft components maintenance company, Vietnam Singapore Technologies Engineering Aerospace, was established as a joint venture between Vietnam Airlines and ST Engineering.