South Korea's finance ministry said Friday it has reached an agreement with Vietnam to offer low-interest loans to the Southeast Asian nation as part of its efforts to broaden bilateral economic ties.
Finance Minister Choo Kyung-ho held a meeting with his Vietnamese counterpart, Nguyen Chi Dung, in Hanoi, offering US$2 billion through the Economic Development Cooperation Fund (EDCF), according to the Ministry of Economy and Finance.
A separate $2 billion will also be provided through the Economic Development Promotion Facility (EDPF), it added.
The memorandum of understanding was reached on the margins of South Korean President Yoon Suk Yeol's three-day state visit to Vietnam that started the previous day.
"We aim to expand the presence of South Korean firms by pursuing high-value infrastructure programs, such as high-speed, medium-capacity and metro rail projects, through the EDCF and EDPF," the finance ministry said.
Seoul launched the EDCF program in 1987 to help developing countries with their basic infrastructure.
The $2 billion offered through the EDCF for the 2024-2030 period marks a sharp rise from the $1.5 billion set for the 2016-2023 period.
The EDPF is operated by the state-run Korea Development Bank.
Source: Yonhap News Agency