South Korea Boosts Aid to Vietnam by 50% In 2024, Eyes Tech and Climate Projects

South Korea plans to increase its Official Development Assistance (ODA) funding for Vietnam by 50% in 2024, reaching over $52 million. This announcement was made by Chang Won-sam, Chairman of the Korea International Cooperation Agency (KOICA), during a meeting with Deputy Prime Minister Tran Luu Quang on March 19.

The increased funding aligns with President Yoon Suk-yeol's June 2023 pledge of a $200 million ODA loan to Vietnam for the 2024-2027 period. The assistance will prioritize the environment, healthcare, education, and digital transformation sectors.

KOICA manages South Korea's grant aid projects, with a budget of $600 million through the end of 2023. In Vietnam, KOICA's ODA projects have traditionally focused on public administration, healthcare, and education. Both nations are now exploring cooperation in new areas, including climate change adaptation and digital transformation.

"The South Korean government and KOICA hold Vietnam in high regard," said KOICA Chairman Chang Won-sam. "South Korea is committed to finding the most suitable projects aligned with Vietnam's conditions and needs."

Deputy Prime Minister Tran Luu Quang expressed gratitude for South Korea's ODA commitment, describing it as "the fastest, highest quality, and most effective."

He encouraged South Korea to expand its grant aid to include innovative and high-tech sectors. Additionally, he requested KOICA's support in pushing the South Korean government to formally commit to the $20 million Rural Electrification Project in Dien Bien.