Vietnam and Austria signed a financial cooperation agreement in Hanoi on June 23, under which Austria is set to fund €150 million for Vietnam's crucial socio-economic development projects over the next five years, according to a report from the Government News.

The agreement was inked by Vietnamese Deputy Minister of Finance Nguyen Duc Chi and Austrian State Secretary in the Federal Ministry of Finance Barbara Eibinger-Miedl.

This agreement marks an important step forward in the bilateral cooperation, particularly in the field of finance.

The newly signed agreement, including €100 million tied to specific conditions and €50 million in untied funding, will serve as the legal basis for both sides to continue discussions and reach consensus on general principles for loan arrangements and the implementation of related procedures for specific loan agreements for projects during the next five-year period (2025–2030).

This loan demonstrates the Austrian Government's strong commitment to continuing its support and partnership with Vietnam on its path of socio-economic development.

Following the signing ceremony, both sides pledged to closely work at the technical level to develop and implement specific projects funded by this agreement in the most effective manner.

Speaking at the signing ceremony, Deputy Minister Chi expressed his appreciation for the invaluable support provided by the Austrian Government to Vietnam via concessional loans over the years. To date, Vietnam has carried out 32 projects funded by the Austrian Government, with a total value of approximately €370 million.

Regarding investment cooperation, Austrian companies have poured $150 million in 49 active investment projects in Vietnam.

Ms. Eibinger-Miedl, for her part, reiterated that Vietnam is an important trading partner of Austria in Southeast Asia, with around 60 Austrian companies currently operating in the country.

She noted that in 2024, Austria's exports to Vietnam increased by 25 per cent, while imports from Vietnam to Austria rose by 9 per cent, demonstrating the positive impact and effectiveness of the EU-Vietnam Free Trade Agreement (EVFTA).