Vietnam and Austria ink deal to boost bilateral finance ties

Vietnam and Austria ink deal to boost bilateral finance ties

Vietnam and Austria signed a €150 million ($172.5 million) financial agreement on June 23 in Hanoi, paving the way for bilateral projects and deeper economic ties over the next five years.

Under the terms of the agreement, the package will include €100 million ($114.7 million) in tied loans and €50 million ($57.36 million) in untied loans.

This new framework will serve as the foundation for both sides to discuss and align on general principles for borrowing and to implement procedures for individual loan agreements for development projects.

Prior to the signing ceremony, Deputy Minister of Finance Nguyen Duc Chi met with State Secretary Barbara Eibinger-Miedl, where he congratulated her on her recent appointment in March. He expressed hope that with her support and that of the Austrian government, bilateral cooperation between the two countries, particularly in economics and finance, will reach new milestones.

During the meeting, Deputy Minister Chi provided an overview of Vietnam's recent economic achievements and the current status of bilateral economic and financial cooperation.

Addressing the area of concessional loans and aid, Deputy Minister Chi noted that Austria has been providing Vietnam with preferential loans through export credit mechanisms.

To date, Vietnam and Austria have signed loan agreements for 32 projects worth approximately $424.5 million. Of these, 31 projects have completed disbursement, while the final ongoing project involves the upgrade of medical equipment at An Giang Obstetrics and Paediatrics Hospital,” he said.

Chi also reported that Austrian investors are currently involved in 49 active projects in Vietnam, with the total registered capital of $153.48 million.

Austria ranks 46^th out of 150 countries and territories investing in Vietnam. The average project size is $3.13 million, lower than the average of approximately $11.9 million.

Participants at the signing ceremony pose for a photo

On the other hand, Vietnamese investors have established two projects in Austria in the wholesale and retail trade and the automotive repair sectors.

“These investments total nearly $794,000, placing Austria 65^th out of 83 outbound investment destinations for Vietnam,” said Chi.

The deputy minister expressed strong confidence that with the continued close and effective collaboration between the two sides, economic and financial cooperation between Vietnam and Austria will continue to flourish, significantly contributing to stronger ties between the two economies.

Eibinger-Miedl expressed her pleasure at co-signing the agreement with Chi, emphasising that it will enable the implementation of a range of projects across various sectors.

“Austria and Vietnam have significant potential to collaborate in green technology development and infrastructure construction,” she said.

She described the signing of the framework agreement as a critical step in elevating bilateral relations between the two governments and the two finance ministries, affirming that technical-level discussions would follow suit to ensure effective implementation of the agreement.

VIR