ANA said it plans to buy an 8.8% stake in state-controlled Vietnam Airlines for US$108m, becoming its main strategic partner. The deal helps satisfy ANA's ambitions to expand in fast-growing regional markets after it backed out of a 2013 deal to buy a 49% stake in Myanmar's Asian Wings Airways for US$25m due to concerns over excessive competition in the country. Vietnam's flag carrier in turn gains a long-sought partner and funds to help it boost operational and management know-how. Although it completed an IPO in 2014, raising US$51m by selling 3.5% of the company, it has yet to list as its return on equity is still far below the 5% level required by law. Vietnam Airlines, which hopes to lift pre-tax profit by 64% to VND2.3t (US$103m) this year, competes with domestic low-cost carrier Vietjet, as well as other full-service carriers such as Thai Airways and Singapore Airlines. The deal, which will see one ANA executive on Vietnam Airlines' board, also raises questions about the viability of the Vietnamese carrier's existing code-share deal with ANA rival Japan Airlines.<br/>