Korea-Vietnam Cooperation Framework Under EDCF and EDPF
DPM CHOO Signs Korea-Vietnam Cooperation Framework on Utilization of Korean ODA under EDCF and EDPF
Deputy Prime Minister Kyungho CHOO and Vietnamese Minister of Planning and Investment Nguyen Chi Dung signed the Korea-Vietnam Cooperation Framework on Utilization of Korean ODA under Economic Development Cooperation Fund (EDCF)[1] and Economic Development Promotion Facility (EDPF)[2] during the Korea-Vietnam summit held in Seoul on December 5.
This framework was signed as an attempt for the two countries to strengthen their mutual economic cooperation at a time when the bilateral relation has been upgraded to a ‘comprehensive strategic partnership (CSP)’ in 2022, marking the 30th anniversary of the establishment of diplomatic ties between the two countries.
According to the framework, the two countries agreed to cooperate on identifying high value-added and large-sized candidate projects including high-speed railway, light railway and metro projects where Korean companies have high interests, and provide packaged concessional loans to Vietnam through the EDCF and EDPF.
In particular, the two governments also concurred to hold inter-governmental meetings that are aimed to examine the progress of identifying candidate projects in the transportation, health and climate change response sectors on a yearly basis to produce the practical outcomes.
As the framework states that the projects will be financed through Korean concessional loans of EDCF and EDPF, multiple Korean companies are expected to join and play major roles in the projects.
Moreover, the Korean government will continuously review the progress of project identification, resolve accompanying difficulties and actively support Korean companies’ participation in the projects by holding EDCF policy meetings and annual meetings to review the progress of project identification with the Vietnamese government.
Going forward, the Korean government will qualitatively improve the bilateral relationship with Vietnam, the largest EDCF partner, and make multi-faceted efforts to lay the foundation for Korean companies to expand their business overseas.
[1] As a government funding instrument, EDCF provides concessional loans characterized by long-term repayment periods together with substantially low interest rates to developing countries in a bid to support their industrial development and economic stability and promote economic cooperation between Korea and developing countries.
[2] As one of the financing instruments for Korea’s concessional loans, EDPF provides concessional loans characterized by mid- to long-term repayment periods together with low interest rates to projects in developing countries that contribute to developing countries’ industrial development and promote economic exchanges between Korea and developing countries.
Please refer to the attached pdf.
