President Vo Van Thuong suggested that Austria prioritize ODA for Vietnam.

President Vo Van Thuong suggested that Austria have more preferential loan policies and prioritize ODA for Vietnam during talks with President Van der Bellen.

During talks with Austrian President Alexander Van der Bellen in Vienna today, President Vo Van Thuong affirmed that Vietnam always attaches importance to and wishes to strengthen cooperation with Austria, a trusted friend of Vietnam in the European Union (EU), according to a statement from the Ministry of Foreign Affairs .

The President believes that the visit will create a new impetus to strongly promote Vietnam - Austria relations in the next period. President Alexander Van der Bellen affirmed that Vietnam is an important partner in implementing Austria's foreign policy in the Asia - Pacific region.

President Vo Van Thuong suggested that Austria put Vietnam on the priority list for ODA and have more preferential loan policies, especially for projects in the fields of health, environment, vocational training, fire prevention and fighting, and rescue.

*President Vo Van Thuong and Austrian President Van der Bellen held a press conference after talks in Vienna on July 24. Photo: VNA*

The President also asked Austria to soon complete the procedures for ratifying the Vietnam-EU Investment Protection Agreement (EVIPA) to facilitate equal and mutually beneficial investment relations between the two sides, and support and urge the European Commission (EC) to soon remove the IUU yellow card on Vietnamese seafood, creating favorable conditions for Vietnam to export this product to the EU.

President Van der Bellen welcomed the two sides' discussions on preferential loans from the Austrian government, thereby soon implementing sustainable development cooperation projects. The Austrian President emphasized that Vietnam is his country's largest partner in Southeast Asia, and hoped that both sides would pay attention to improving the bilateral trade balance.

The two leaders reaffirmed the importance of peace, stability, safety, security and freedom of navigation in the East Sea, supporting international law and the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

After the talks, President Vo Van Thuong and the Austrian President witnessed the signing of a Memorandum of Understanding between the Vietnamese Ministry of Foreign Affairs and the Austrian Ministry of Foreign Affairs.

In 1972, Austria was one of the first countries in Europe to establish diplomatic relations with Vietnam . Last year, Vietnam and Austria celebrated 50 years of establishing relations.

According to the Ministry of Planning and Investment, by May 2023, Austria ranked 44th out of 143 countries and territories investing in Vietnam, with 41 projects worth 148 million USD. About 6,000 Vietnamese people are living in Austria.

Austria's ODA loans are export credits with a medium level of concession. Austria commits to a non-refundable element for projects it finances of at least 35% according to OECD regulations. In the projects, goods and services originating from Austria must account for at least 50%.

According to the Ministry of Foreign Affairs, ODA loans from the Austrian government are suitable for projects that require the import of modern, high-quality equipment and technology. Austria's preferential credit is being used to implement projects in areas such as railway transport, medical equipment, fire prevention and fighting, and vocational training. Austrian ODA projects are implemented relatively quickly because suppliers have been identified from the project preparation stage.

Austria and Vietnam signed a Framework Financial Cooperation Agreement in 2015 and it was extended until August 2023. Accordingly, the Austrian government committed to providing a total of 100 million euros in preferential financing to the Vietnamese government during the Agreement's effective period from August 2019 to August 2023.

In June 2021, the Ministry of Finance, on behalf of the Vietnamese government, signed a loan agreement with UniCredit Bank worth 12 million euros for the Medical Equipment Investment Project for Vinh Long Provincial General Hospital.

Previously, the Austrian government provided funding to invest in medical equipment for Cho Ray Hospital, Quang Tri Hospital, and the Fire Prevention and Fighting Operation Center of the Ministry of Public Security.