South Korea to pump ODA loans to Vietnam by 50% more

By Duc Minh March 20, 2024 | 05:46 pm PT

Vietnam Deputy Prime Minister Tran Luu Quang meets with Korea International Cooperation Agency president Chang Won-sam in Hanoi on March 20, 2024. Photo courtesy the Vietnam Government Portal

South Korea is set to increase its Official Development Assistance loans to Vietnam by 50% from last year to $52 million this year.

"The South Korean government and the Korea International Cooperation Agency highly values Vietnam," KOICA president Chang Won-sam told Deputy Prime Minister Tran Luu Quang Tuesday.

In June 2023, South Korea President Yoon Suk-yeol promised to let Vietnam borrow $200 million in ODA from 2024 to 2027 in the areas of environment, healthcare, education and digital transformation.

South Korea will also pay attention to Vietnam’s needs and initiate projects accordingly.

KOICA, established in 1991, oversees the management of non-refundable aid projects by the South Korean Government.

The South Korean government, through KOICA, has provided $600 million in loans to Vietnam.

Deputy PM Quang said that South Korea has been giving Vietnam the most effective and fastest loans. He wants South Korea to increase aid in digital transformation and innovation.

He proposed an aid for connecting the rural of Dien Bien Province in northern Vietnam with the national grid, which is estimated to cost $20 million.

South Korea tops Vietnam’s foreign direct investment with an accumulated registered capital of $86 billion. It ranked third in bilateral trade at $76 billion last year.