ANNOUNCEMENT 20 Apr 2017
On 29 March 2012, the Export-Import Bank of Korea (Korea Eximbank) announced signing an Economic Development Cooperation Fund (EDCF) loan agreement with the Ministry of Finance of Vietnam for two Vietnamese projects with Korean company participation.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, press release of 20 April 2012, Using Solar Energy to Power Remote Areas of Vietnam: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=34&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16721
Guide to the Export-Import Bank of Korean: http://ehf.koreaexim.go.kr/File.down?file=/attach_file/conts/en/_English_guide_book.pdf
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.