The South Korean government has decided to grant non-refundable aid of US$200 million for Vietnam’s social and economic development for the 2024-27 period, the Korea International Cooperation Agency (KOICA) announced on Thursday.

KOICA President Chang Won Sam made the announcement at his meeting with Vietnamese Ministry of Foreign Affairs Bui Thanh Son in Seoul, during Son’s working visit to the country from May 30 to June 1 at the invitation of his South Korean counterpart Cho Tae Yul.

The KOICA leader affirmed that the Korean government is very interested in, and wishes to promote, the South Korea-Vietnam comprehensive strategic partnership in general and Vietnam’s economic and social development in particular.

Appreciating Vietnam as a strategic partner in official development assistance (ODA) cooperation, the Korean government has decided to provide the Southeast Asian country with $200 million in non-refundable aid through KOICA to contribute to Vietnam’s social and economic development in 2024-27, Chang said.  

The aid will be allocated to projects in digital transformation, environment, climate change response, healthcare, education, and public governance, according to the president.

KOICA will make the first disbursement of $52 million this year, he added.  

Minister Son told the KOICA leader that Vietnam highly appreciates the funding sources provided by the agency in the past, especially non-refundable aid from the Korean government through KOICA, as they have significantly contributed to infrastructural development and people’s livelihood improvement. 

The minister suggested that KOICA continue to expand ODA loan provision for Vietnam into new fields that match Vietnam’s development priorities, including semiconductor engineer training, green economy, circular economy, creative innovation, high-tech agriculture, and humanitarian assistance.

KOICA should consider coordinating with the Korea Export-Import Bank (KEXIM) in the implementation of South Korean ODA-funded projects in Vietnam to improve efficiency in the use of ODA loans, Son proposed.

He also asked KOICA to urge the South Korean government to make an official commitment to supporting a power supply project for rural communities in northern Dien Bien Province from the national power grid.

Minister Son highly appreciated the exchange and experience sharing programs carried out by KOICA in recent times, saying they have helped strengthen the friendship and mutual understanding between the two peoples.

Vietnam and South Korea established diplomatic relations in 1992 before upgrading their ties to a strategic partnership in 2009 and then to a comprehensive strategic partnership in 2022.

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