The Australian government will provide an estimated $A150.4 million (US$151.4 million) in official development assistance to Vietnam in 2012-13, more than 10 percent higher than in the previous year.
It will make Vietnam Australia's fifth largest recipient of ODA for the year.
"Australia is committed to assisting Vietnam to overcome poverty and achieve sustainable development, as demonstrated by the $A12.5 million increase in funding," the country's ambassador in Hanoi, Allaster Cox, said.
Managed by AusAID, the aid program focuses on five main areas - human resource development, infrastructure, reducing negative impacts of climate change, improving public health by increasing access to safe water and sanitation, and economic reform.
In 2012-13 Australia will continue to help Vietnam improve access to essential infrastructure services such as water supply and sanitation as well as transport linkages that connect poor areas to key transport and economic corridors.
It will help complete the design for the Cao Lanh Bridge which will deliver significant economic and social benefits by improving transport access to the densely populated Mekong Delta.