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Vietnam Today

South Korea pledges $1.5bn in ODA

Released at: 19:26, 08/11/2017

South Korea pledges $1.5bn in ODA

Photo: Ministry of Planning and Investment

Credit framework arrangement signed between Vietnam and South Korea on November 8.

by Quang Huy

On behalf of the two countries’ governments, Minister of Planning and Investment Nguyen Chi Dung and Ambassador of the Republic of Korea to Vietnam, H.E Lee Hyuk, signed a credit framework arrangement on November 8 concerning loans from the Economic Development Cooperation Fund (EDCF) for 2016-2020.

Minister Dung emphasized the contributions and efficiency of South Korea’s official development assistance (ODA) to Vietnam over the last two decades and more in major and priority fields. He also expressed his appreciation and recognized the efforts of the South Korean Government to maintain Vietnam as the top priority partner in providing ODA.

Ambassador Lee Hyuk confirmed the assistance from the South Korean Government to Vietnam and committed to closely coordinate with relative agencies in the latter to implement the credit framework arrangement for 2016-2020.

Consisting of ten articles, the credit framework arrangement concerns South Korea’s ODA credit of $1.5 billion and contains certain basic requirements.

The credit will be used in projects selected by the two governments, with the framework arrangement including the scale and conditions of loans, the process of transferring, implementing, and disbursing, and incentives in Vietnam for projects using the ODA and EDCF’s office in Vietnam.

The credit framework arrangement, which was approved after a year of negotiations, will create the legal framework for South Korea to provide loans and for Vietnam to receive South Korean ODA, and is a foundation for both sides to select and conduct projects using EDCF’s capital for 2016-2020.

It contains new initiatives compared to previous arrangements and is expected to create more favorable conditions for project deployment.

Since 1993, $2.7 billion worth of South Korean ODA has been provided for Vietnam to carry out some 60 projects in priority fields such as traffic and urban infrastructure, health, and water supply and drainage, which are of great significance for its socioeconomic development, according to the Ministry of Planning and Investment.

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