South Korea to provide US$1.5 bln ODA for VN in 2016-2020

The Republic of Korea (RoK) intends to lend US$1.5 billion ODA to Viet Nam in the 2016-2020 period, US$0.9 billion of which will be given to finance cooperation and the rest to other priority areas, like large-scale infrastructure, railway, healthcare, and IT.

The news was announced at a policy dialogue held by the Ministry of Planning and Investment (MPI) on June 8 in Ha Noi.

At the dialogue, Viet Nam announced the socio-economic development plan in the 2016-2020 period, the medium-term public investment plan, the Law on Public Investment, the Bidding Law, Decree No. 16/2016/ND-CP on management and use of ODA and concessional loans provided by foreign donors, and the Law on State Budget.    

Meanwhile, the Korean side also presented its policies and new regulations on development cooperation and ODA.

Financial cooperation will be key in Viet Nam-Rok cooperation in near future, said Le Quang Manh, Head of the Foreign Economic Relations Department under the MPI.

Viet Nam needs to take advantage of the financial support from the Korean government and Korea International Cooperation Agency (KOICA) and continue to mobilize support from the RoK in the areas where the RoK has experience and strength and Viet Nam has high demand, such as transport, health, environment, as well as high technology, he said.

The expert proposed Viet Nam should actively suggest projects which focus on effective sectors and localities in accordance with its medium and long term development plans, he added.

On his side, Sang Kyu Lee, a representative from the Korean Ministry of Strategy and Finance, affirmed that the RoK always promotes the exchanges and cooperation with Viet Nam in the fields of economics, culture, and society.

The Korean Government attaches special importance to development cooperation in such fields as transport infrastructure, urban development, healthcare, education, environment; clean energy and IT.

Mr. Sang Kyu Lee revealed that the Korean government is formulating the Country Partnership Strategy (CPS) for Viet Nam in order to help the recipient country achieve the objectives of transportation infrastructure, IT, scientific and technological human resources in the socio-economic development strategy for the period of 2011-2020 and socio-economic development plans for 2016-2020.

The RoK Government signed lending agreements or committed to providing credit for nearly 60 projects worth US$2.8 billion in Viet Nam from 1992 to 2015.  Currently, the RoK has had 34 investment projects worth of US$1.7 billion in Viet Nam of which US$0.9 billion has been disbursed.

The two sides are preparing to negotiate a Credit Framework Agreement for 2016-2020.


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