Hanoi (VNA) ꧃– Vietnam and Austria have formalised a 150 million EUR (more than 175 million USD) financial cooperation agreement, paving the way for a series of key socio-economic development projects over the next five years.

Signed in Hanoi on June 23 by Vietnamese Deputy Minister of Finance Nguyen Duc Chi and State Secretary in the Austrian Ministry of Finance Barbara Eibinger-Miedl, the framework agreement marks a new chapter in bilateral ties, particularly in financial collaboration. The deal includes 100 million EUR in conditional credit and an additional 50 million EUR in unconditioned funds, serving as a legal basis for both sides to negotiate the common principles on lending and borrowing, and to carry out procedures for future loan agreements for projects from 2025 to 2030. The agreement reflects the Austrian Government’s strong commitment to supporting Vietnam’s development agenda. Following the signing, both parties pledged to closely coordinate at the technical level to ensure efficient implementation of forthcoming projects under the new financing framework. During a prior meeting, Deputy Minister Chi congratulated Eibinger-Miedl on her appointment as State Secretary in the Austrian Ministry of Finance, expressing confidence in her continued contributions to strengthening the two countries’ cooperation, especially in finance. He updated the Austrian delegation on Vietnam’s recent economic performance, noting that the country had maintained macroeconomic stability despite global headwinds. Vietnam recorded a GDP growth rate of 7.09% in 2024, while inflation remained under control and major economic balances, including public investment and foreign direct investment inflows, were positive.

Vietnam, Chi explained, has adopted a flexible fiscal policy that supports businesses and citizens while meeting the Government’s expenditure needs and investing heavily in infrastructure. Public debt remains tightly managed and within safe international thresholds. In the time ahead, Vietnam is targeting 8% growth for 2025 and double-digit annual expansion for 2026–2030. He appreciated the Austrian Government’s precious support for Vietnam via concessional loans over the past years. To date, Austria has provided loans for 32 projects across Vietnam, with a total value of approximately 370 million EUR. Most of these have either been completed or are progressing smoothly, according to Chi, with tangible benefits for Vietnam’s development. On the investment front, Austrian firms currently now have 49 active projects in Vietnam, with total registered capital exceeding 150 million USD. While modest in scale, these projects are said to deliver strong returns. In contrast, Vietnamese investment in Austria remains limited, with only two registered projects to date. Both sides, however, acknowledged the untapped potential for deeper investment partnership. Speaking at the signing, Eibinger-Miedl reaffirmed Vietnam’s role as Austria’s important trading partner in Southeast Asia. Currently, around 60 Austrian businesses are operating in Vietnam. In 2024, Austria’s exports to Vietnam grew by 25%, while imports from Vietnam rose by 9%, signalling that the EU – Vietnam Free Trade Agreement (EVFTA) is proving effective.

She pointed out that Austrian companies have expertise in green technology and infrastructure development, aligning well with Vietnam’s current economic priorities. Eibinger-Miedl praised Vietnam’s Ministry of Finance for its cooperation in effectively utilising Austrian concessional loans over the past two decades. She voiced her hope that the new 150 million EUR package would support projects in green technology, energy transition, sustainable development, and infrastructure. Both sides agreed that the signing of the framework agreement is not only a financial milestone but also an instrumental step in expanding bilateral relations. The two sides pledged to facilitate technical cooperation and businesses’ partnerships, laying the groundwork for more dynamic and wide-ranging collaboration in the years ahead./.