Strengthening financial cooperation and supporting development
On the morning of June 23, at the headquarters of the Ministry of Finance, Deputy Minister Nguyen Duc Chi and the State Department of the Ministry of Finance of the Republic of Austria Ebarbaringer- Miedl signed a Financial Cooperation Framework Agreement between the two governments with a total value of 150 million Euros, as a foundation for bilateral cooperation in the period of 2025-2030.
According to the content of the Agreement, out of a total of 150 million Euros, 100 million Euros are subject to specific conditions and 50 million Euros are not subject to conditions. This is the legal basis for the two sides to agree on the general principle of borrowing capital and implementing loan agreements for each specific project in the next 5 years. The loan demonstrates the strong commitment of the Austrian Government to continue accompanying Vietnam in socio-economic development.
Speaking at the ceremony, Deputy Minister Nguyen Duc Chi highly appreciated the role of the Austrian Government in supporting Vietnam through preferential loans over the past 20 years. To date, Vietnam has implemented 32 projects using loans from the Austrian Government with a total value of about 370 million Euros. Most of the projects have been completed or are being implemented smoothly, demonstrating the practical cooperation between the two sides.
Also at the meeting, Deputy Minister Nguyen Duc Chi congratulated Ms. Barbara Eibinger-Miedl on her appointment as Secretary of State of the Austrian Ministry of Finance, and expressed his confidence that she will continue to contribute to promoting financial cooperation between the two countries. The Deputy Minister shared the economic and financial situation of Vietnam in recent times, emphasizing efforts to maintain macroeconomic stability, control inflation, and GDP growth of 7.09% in 2024. targets such as budget revenue, public investment and FDI attraction continue to achieve positive results. Vietnam is implementing flexible fiscal policies and safe public debt management according to international standards.
Aiming for 2025 and the period 20262030, Vietnam sets a GDP growth target of 8% and moving towards double digits, with many synchronous solutions to create a favorable environment and promote sustainable development.
Expanding investment and trade cooperation
Regarding investment, Deputy Minister Nguyen Duc Chi said that there are currently 49 investment projects of Austrian enterprises operating in Vietnam with a total registered capital of more than 150 million USD. Although the scale is not large, the effectiveness of the projects is highly appreciated. On the other hand, Vietnamese enterprises have only had 2 small projects investing in Austria, mainly in the service sector. Both sides agreed that there is still a lot of room for investment cooperation and can be expanded in the coming time.
The Austrian side also acknowledged the increasingly important role of Vietnam in the regional cooperation strategy. Minister of State Barbara Eibinger-Miedl emphasized that Vietnam is a key trade partner of Austria in Southeast Asia, with about 60 Austrian enterprises operating in Vietnam. In 2024, Austria's exports to Vietnam will increase by 25%, while imports from Vietnam will increase by 9%. She affirmed that the EVFTA Agreement is an important lever to promote bilateral trade.
Appreciating the efforts of the Vietnamese Ministry of Finance in effectively implementing preferential loans, Ms. Barbara Eibinger- Miedl expressed her hope that the new loan will help design and implement projects in the fields of green technology, infrastructure construction, energy conversion and sustainable development. She also said that the combination of the in-depth expertise of Austrian enterprises and the strong development needs of Vietnam will create many effective cooperation opportunities.
At the meeting, the two sides affirmed that the signing of the Framework Agreement is not only an important step forward in financial cooperation, but also a foundation for expanding cooperation in many fields. The two governments pledged to continue technical coordination, promote the progress of specific projects, and at the same time create the most favorable conditions for businesses of the two countries to increase investment and business.
Deputy Minister Nguyen Duc Chi expressed his confidence that the cooperative relationship between the Ministry of Finance of Vietnam and the Ministry of Finance of Austria, as well as between the two economies, will increasingly develop substantially, effectively and sustainably in the coming time.
