The loan is provided by the Government of the Republic of Korea (RoK) through its Economic Development Co-operation Fund at an annual interest rate of 0.15%, with a 35-year repayment period that includes a ten-year grace period.
The money will provide medical equipment to Vietnam’s National Ear, Nose and Throat Hospital, contributing to improved sanitation, treatment and prevention of ear, nose and throat diseases.
The agreement is part of a US$1.2 billion framework agreement for the 2012–2015 period signed previously between the two countries.
During the 2008–2011 period, the RoK provided Vietnam with US$1 billion to implement a range of projects in infrastructure development, transport, healthcare, water supply, and vocational training. Major projects included the Vam Cong Bridge, the Vinh Thinh Bridge, Thua Thien–Hue General Hospital, and the Thien Tan water supply project.
According to Nguyen Thanh Do, head of the MoF’s Department of Debt Management and External Finance, many projects financed by RoK preferential loans have been put into use and now effectively contribute to Vietnam’s socioeconomic development.
