Korea and Vietnam exchanged a loan deal for over USD 188 million 05/07/2024 05:18:00 28

Vietnamese Prime Minister Pham Minh Chinh and Korean Prime Minister Han Duck Soo witnessed the signing of documents in Korea on July 2, 2024, between Vietnam's Minister of Finance Ho Duc Phoc and Senior Executive Director of the Export-Import Bank of Korea, Mr. Hwang Ki-yeon.

The project "Investment and construction of My An - Cao Lanh Expressway - phase 1" will be financed with a loan agreement worth 188.115 million USD. The estimated route length will be approximately 26.6 km. This will lay the foundation for the North-South expressway to be gradually completed in the West.

The Senior Executive Director of the Export-Import Bank of Korea, Mr. Hwang Ki-yeon, and Mr. Ho Duc Phoc. Photo: Ngoc Tram

This is the first loan under the framework of EDCF loans for the period 2024–2030 worth of 2 billion USD between the two Governments that has been signed by the Ministry of Finance and the Export-Import Bank of Korea.

The collaboration of Korean agencies in implementing ODA loans is greatly appreciated by the Ministry of Finance of Vietnam. The two parties would likely keep working closely together to advance loan disbursement in the future, according to Finance Minister Ho Duc Phoc.

Vietnam presently receives more aid from the Korean government than any other country in Asia, with the Korean government being its second-largest bilateral donor. Historically, loans from the Korean government have been financed by the Export-Import Bank of Korea's EDCF.

Long loan durations, favorable interest rates, and a fairly wide spectrum of loan users—including those in the transportation, healthcare, and environmental protection sectors—are characteristics of Korean loans. With 2.8 billion USD in funding, the Ministry of Finance and the Export-Import Bank of Korea have signed 64 loan agreements thus far.

Translator: Thúy Nga