Vietnam Airlines will buy 10 A350s and 10 A321s, while VALC will take another 10 A321s.

A memorandum of understanding had been reached in early October under the witness of Prime Minister Nguyen Tan Dung during his official visit to France .

Airbus plans to hand over the first A321 to Viet Nam in 2012 and an A350 in 2016.

The purchase was a step by Vietnam Airlines and VALC to develop their fleets.

"With the strong development of the domestic and regional aviation markets, the demand for air travel in Viet Nam’s big cities and between the country and overseas destinations will also increase," said Vietnam Airlines General Director Pham Ngoc Minh.

VALC General Director Tran Long shared the view, saying that the purchase would help boost the development of the local aviation industry and its integration into the region and the world.

He also said VALC will lease all these planes to Vietnam Airlines for 12 years.

At present, Vietnam Airlines operates 47 planes, including 25 Airbus planes.

The corporation plans to increase its fleet to 86 in 2015 and 110 in 2020.