The Export-Import Bank of Korea (www.koreaexim.go.kr, Chairman Lee Duk-hoon, “Korea Eximbank”) announced on July 9 that it will provided USD 162 million in EDCF loan for Vietnam’s Hung Ha Bridge Construction Project and Hanoi University of Pharmacy Project.

* The Economic Development Cooperation Fund (EDCF) was established by the Korean government in 1987 to promote economic exchanges with the developing world and to assist developing countries in achieving industrialization and economic stability through the provision of long-term, low-interest credit. Korea Eximbank currently manages the fund as its trustee.

Being EDCF’s largest recipient, Vietnam has received KRW 2.1 trillion, taking up about 20% of KRW 10.2 trillion in total EDCF loan commitments.

Korea Eximbank Chairman Lee Duk-hoon signed a loan agreement for the projects with Deputy Minister of Finance Truong Chi Trung at the Ministry of Finance in Hanoi, Vietnam.

The Hung Ha Bridge Construction Project, receiving a total of USD 117 million in EDCF loan, will build a bridge across the Red river to connect Hung Yen province and Ha Nam province and construct the approach roads stretching 4.6 km.

Once the project is completed, sharp drop in logistics costs, increased employment, reduced transit time will be the expected benefits. The project is expected to contribute greatly to the local economy of the Han river delta region such as Hanoi, Haipong, and Ninbinh.

USD 45 million in EDCF loan will be extended for the Hanoi University of Pharmacy Construction in Bac Ninh Project. This project aims at building a second campus of the Hanoi University of Pharmacy whose total space will cover 37900 m² in Bac Ninh province, which is 25 km northeast of Hanoi. The project will also provide necessary educational materials and equipment. In particular, the project is the outcome of the MOU established in 2009 on the pharmaceutical education cooperation between Korea’s Ministry of Education and the Vietnamese government. It is recognized as Korea’s first ever large-scale development cooperation project combining grants and loans to support Vietnam’s higher educational institutions.

Currently, there is only 1.76 pharmacist for every 10,000 people in Bac Ninh province (14.2 pharmacists for every 10,000 people in Korea), being seriously underserviced.

Making things worse is that the existing Hanoi University of Pharmacy is faced with aging facilities and equipment while being designated as the cultural preservation zone that inhibits reconstruction. As a result, the university has been running the three-shift class system, offering a poor educational environment.

The loan agreement established between Korea Eximbank and Vietnam’s Finance Ministry is expected to greatly mitigate the shortage in pharmacists by providing EDCF funds required to provide a high quality pharmaceutical education and supply up-to-date facilities and equipment.

At the signing ceremony, Chairman Lee remarked, “Vietnam is one of Korea’s key partners of economic cooperation.” He added, “We expect that the EDCF loan will be a practical tool for the economic and social development in Vietnam and also help Korean firms get a foothold in Southeast Asian markets.”

As of May 2014, Vietnam remains EDCF’s largest partner country to which EDCF has committed USD 1.9 billion in loans for 49 projects including these latest two projects.