Victorians looking for a cheap Asian getaway will soon have more options, with Vietnamese low cost airline Vietjet announcing plans to launch flights from Avalon.

The budget carrier plans to start services between Melbourne's second international airport and Ho Chi Minh City in the second half of next year.

Air Asia is currently the only airline to offer scheduled international flights out of Avalon, but Executive Chairman David Fox is already looking to future expansion.

In 2018 Scott Morrison, then federal treasurer, announced $20 million in funding for Avalon airport to undergo an international expansion. (AAP)

"Ho Chi Minh will be the first Vietnamese connection, but we'll hope to expand to other cities such as Hanoi and Da Nang in the future", he said.

Premier Daniel Andrews witnessed the signing of the agreement and sampled Vietjet's product on a domestic flight during a brief stop in Vietnam.

"Ultimately it's about jobs", he told 9News.

Avalon Airport CEO Justin Giddings. . (9News)

"There's hundreds of people work at Avalon today and I think with announcements like this we can be confident there'll be thousands in the future."

Vietjet currently flies dozens of narrow-body Airbus A320 and A321 jets on short-haul services, and it remains unclear what type of aircraft the airline will use for its Avalon expansion.