ANNOUNCEMENT 08 Apr 2013
In April 2013, the Export-Import Bank of Korea ("Korea Eximbank") announced a financing loan through its Economic Development Cooperation Fund (EDCF) for an infrastructure development project in Vietnam. This is on the condition that Korean contractors are hired for the project.
NUMBER OF INTERVENTIONS
The Export-Import Bank of Korea, Korea Eximbank Paves Major Transportation Network in Southern Vietnam. Available at: https://www.koreaexim.go.kr/site/program/board/basicboard/view?currentpage=24&menuid=002001007&pagesize=10&boardtypeid=284&boardid=16847
In April 2013, the Export-Import Bank of Korea ("Korea Eximbank") announced a financing loan through its Economic Development Cooperation Fund (EDCF) for an infrastructure development project in Vietnam.
Under the terms of the Lo Te to Rach Soi Highway Construction Project loan, Korea Eximbank would provide USD 200 million in total financing to construct a 54km highway in Southern Vietnam. The project seeks to connect the roads from Ho Chi Minh City to Rach Gia.
This is on the condition that EDCF projects in Vietnam would hire Korean contractors for the project in exchange for funding.
In this context, the Korea Eximbank mentioned that: "the project will open new markets in Vietnam for Korean constructors affected by the slump in the domestic construction market."
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