S Korea promises loans of $326 million

South Korea has pledged to lend Viet Nam US$326 million from its Economic Development Co-operation Fund over the next two years. Deputy Minister of Planning and Investment Cao Viet Sinh and Korean Ambassador to Viet Nam Kim Eui-ki signed the framework agreement in the capital city yesterday.

The Thu Duc Housing Development Joint Stock Co has co-operated with South Korea’s Daewoo to build apartment blocks

South Korea has pledged to lend Viet Nam US$326 million from its Economic Development Co-operation Fund over the next two years.

Deputy Minister of Planning and Investment Cao Viet Sinh and Korean Ambassador to Viet Nam Kim Eui-ki signed the framework agreement in the capital city yesterday.

The agreement would also help to speed implementation of projects receiving loans from the fund by reducing the time required for completing administrative procedures for each project, said Kim at the signing ceremony.

Sinh said Viet Nam highly valued the support of South Korea in promoting Vietnamese economic growth.

Starting with 2006, he noted, the Korean fund would make preferential loans of $100 million per year, targeted at such sectors as infrastructure, IT and the environment.

He said loans would likely top $440 million per year in the near future.

Under the loan framework, three construction projects earmarked for funding include the Thua Thien-Hue General Hospital, upgrades to the Thien Tan water supply in Dong Nai Province, and construction of a southern coast road.

Since 1993, South Korea has lent a total of $188 million for six projects in Viet Nam, according to Ministry of Planning and Investment statistics. The figure could reach $309 million with the funding of twelve projects currently being evaluated.

(Source: VNS)