The Republic of Korea (RoK) will provide US$1.5 billion in official development assistance (ODA) for Viet Nam for 2016-2020 via the Korea Economic Development Cooperation Fund (EDCF).

A framework agreement to this effect between the two governments was signed by Minister of Planning and Investment Nguyen Chi Dung and RoK Ambassador to Viet Nam Lee Hyuk in Ha Noi on Wednesday.

With 10 articles, the agreement specifies lending conditions, disbursement and Viet Nam’s incentives for projects using the RoK-funded ODA. The sum will be reserved for projects chosen by the two governments.

Speaking at the signing ceremony, Dung said the RoK’s ODA had been used in important and priority fields in Viet Nam for more than two decades.

He also lauded the RoK government for considering Viet Nam a top priority partner in ODA supply.

Ambassador Lee vowed to work closely with Vietnamese agencies to realise the agreement which creates a legal framework for the process.

Since 1993, the RoK has offered $2.7 billion in ODA to Viet Nam to execute nearly 60 projects, mostly in transport infrastructure, urban development, healthcare, water supply and drainage. — VNS