South Korea will expand its refundable and non-refundable aids to Vietnam to fuel the latter’s peace and prosperity, South Korean President Yoon Suk Yeol said at a press briefing held after his talks with Vietnamese State President Vo Van Thuong on Friday afternoon.

The two leaders reached a consensus on the effective use of official development assistance (ODA) loans offered to Vietnam by South Korea, according to the press conference.

The two nations signed a cooperation agreement on the South Korean economic development promotion fund worth US$2 billion to implement major investment projects to develop traffic and urban infrastructure in Vietnam.

South Korean President Yoon, who arrived in Hanoi on Thursday to start his three-day state visit to Vietnam, said that the South Korean government will extend the framework loan agreement and increase the amount of ODA for Vietnam to $2 billion from $1.5 billion in the next few years.

Together with the fund, South Korea’s total refundable aid to Vietnam will reach $4 billion in 2030, the South Korean representative affirmed.

“Besides, we will provide Vietnam with a non-refundable aid package of $200 million in the 2024-27 period to enhance environmental protection, and respond to climate change, and develop the health, education and digitalization fields,” said the South Korean leader.

In addition, the Korea International Cooperation Agency (KOICA) will supply Vietnam with $30 million in non-refundable aid within 10 years to fuel the Southeast Asian nation’s efforts in scientific innovation and technology growth, he added.

Vietnamese State President Vo Van Thuong speaks at a press briefing on June 23, 2023. Photo: Nguyen Khanh / Tuoi Tre

Fostered political trust between Vietnam and South Korea

Speaking at the press briefing, State President Thuong said that the two nations will continue all-level delegation exchange, and discuss international issues, contributing to strengthening political trust.

The two countries will also foster their defense and security cooperation via technology transfer in the defense industry.

The South Korean leader pledged to help Vietnam bolster its maritime capacity, affirming that South Korea has a strong political trust in defense cooperation with Vietnam.

Furthermore, the two nations reached a consensus on deeper cooperation in core mineral supply chains by building a core mineral supply chain center, said the South Korean president.

State President Thuong underscored that Vietnam always encourages South Korean firms to expand their reach to the country’s key projects such as thermal power plants, liquefied natural gas-fired power facilities, and hi-tech electronics production and smart city projects.

South Korean President Yoon Suk Yeol delivers a speech at a press conference on June 23, 2023. Photo: Nguyen Khanh / Tuoi Tre

Stronger people-to-people exchange

The two leaders are keen on the extension of a memorandum of understanding on the dispatch of Vietnamese laborers to South Korea under the Employment Permit System (EPS) program.

The two nations will create more favorable conditions and simplify entry procedures for each other’s experts and laborers.

The two leaders agreed to beef up cultural and educational exchange, aside from deepening the cooperation between the two countries’ localities via various trade and investment promotion programs.

Vietnamese State President Vo Van Thuong (right, back row) and South Korean President Yoon Suk Yeol (left, back row) witness the signing by the two nations’ ministries of foreign affairs. Photo: Nguyen Khanh / Tuoi Tre

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