IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 29 Mar 2012 | Removal date: open ended
Still in force

Trade finance

The loan agreement between the Korean Eximbank and the Ministry of Finance of Vietnam has a total volume of USD 58 million. The loan finances two projects, respectively the Solar Cell Project of Quang Binh Province and the Long Xuyen Sewerage, Drainage and Wastewater Treatment System Project. The first project will instal 4834 solar batteries, whilst the latter will construct a wastewater treatment facility, pumping stations and sewerage pipelines in Viet Nam. Korean companies are participating in both projects in the area of design to construction.

In this context, the Bank stated: "In particular, as Korean companies participated in the project from design to construction, Korean companies gained experience in overseas projects and the chance to demonstrate the superiority of Korean equipment. As such, this project is anticipated to contribute their expansion into the ASEAN market. ... Similar to the Solar Cell Project, project participation by Korean companies from design to construction is anticipated to strengthen the competitiveness of Korean companies in future water and sewage projects in Vietnam."

The Economic Development Cooperation Fund
The EDCF provides low-interest and long-term credit to developing countries for projects seeking to promote industrialisation and economic stability. In some cases, Korean companies are involved in such projects directly or through exports. More information on the Fund can be found on the official website or the "Guide to the Import-Export Bank of Korea" publication.

The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets and from foreign subsidiaries.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

531 Buildings
541 General construction services of buildings

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