South Korea doubles ODA capital for Vietnam by 2024

South Korea's ODA to Vietnam this year is expected to exceed $52 million, an increase of nearly 50% compared to 2023.

This information was shared by Chang Won-sam, President of the Korea International Cooperation Agency (KOICA), during a meeting with Deputy Prime Minister Tran Luu Quang on the afternoon of March 19.

"The South Korean government and KOICA attach great importance to Vietnam," said Mr. Chang Won-sam.

In June 2023, President Yoon Suk-yeol pledged to provide Vietnam with $200 million in ODA loans for the period 2024-2027, in the areas of environment, health, education , and digital transformation.

The KOICA president stated that South Korea's ODA to Vietnam this year is approximately $52 million, double the amount in 2023. This is part of a plan to fulfill President Yoon Suk-yeol's commitment during his visit in June 2023 to increase ODA to Vietnam to $200 million by 2027.

"Korea is always listening to find projects that best suit Vietnam's conditions and needs," said the KOICA president.

Deputy Prime Minister Tran Luu Quang met with KOICA President Chang Won-sam on the afternoon of March 19. Photo: VGP — Deputy Prime Minister Tran Luu Quang met with KOICA President Chang Won-sam on the afternoon of March 19. Photo: *VGP*

Established in 1991, KOICA is responsible for grant aid projects of the South Korean government. Its ODA projects in Vietnam mainly focus on public administration, health, and education. Both sides are considering expanding into new areas such as climate change adaptation and digital transformation.

The amount of non-refundable aid from the South Korean government to Vietnam through KOICA was $600 million, as of the end of 2023.

Deputy Prime Minister Tran Luu Quang highly appreciated South Korea's provision of ODA to Vietnam, noting that it has been "fast-paced, high-quality, and highly effective." He expressed his hope that South Korea would continue to increase the scale of non-refundable aid to Vietnam in the fields of innovation and high technology.

He also requested KOICA to urge the Korean government to make a formal commitment to the rural electrification project in Dien Bien, with a total investment of approximately 20 million USD.

South Korea is currently the leading country in direct investment in Vietnam, with a cumulative total of $86 billion. It ranks second in tourism development cooperation and third in trade, with a trade turnover of $76 billion in 2023.

Duc Minh

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