The payout will be part of its new “SKY COVID CARE insurance” scheme, which will cover all domestic flights between 23 March and 30 June 2020.
It will be offered free of charge to all eligible customers, regardless of age and nationality.
In a statement announcing the launch of the insurance, the airline said: "With the insurance, passengers are eligible for insurance coverage and benefits from Vietjet within 30 days starting at 00:01 of the flight date, regardless of how passengers are infected with the disease.”
The airline said it has set aside "tens of billion dong” of its own money to cover the scheme, which is designed to “bring passengers assurance”.
In order to qualify for the coverage, the airline said prospective customers must provide “all information in accordance with Vietjet’s terms and conditions” when purchasing tickets.
This includes full name with relevant ID as proof, date of birth, contactable phone number and email address.
In addition, customers must “comply with all regulations on disease prevention and control of Vietjet, the Ministry of Health and authorities”.
While the airline doesn’t discriminate against customers of certain ages or nationalities, those who have already been confirmed positive for Covid-19 are ineligible, as are those who breach any safety regulations, such as isolation or travel bans, outlined by the Vietnamese Ministry of Health or other government authorities.
However, the airline has said it won’t cover passengers with epilepsy, mental illness or suicidal behaviours under the policy either.
Customers hoping to make a claim can do so via the form on its website, and will need to provide proof that they’ve tested positive for Covid-19 as well as proof of treatment.
This is not the first time the airline has courted controversy.
In 2012, the airline was fined after it hosted a bikini show on one of its planes.
Vietnam‘s Civil Aviation Authority issued a 20m VND (£735) fine as it said the airline staged the show without receiving official approval.
Vietnam currently has 113 confirmed cases of coronavirus according to the latest World Health Organisation report, dated 23 March.