Dongsoo Kim, Chairman of Korea Eximbank, signed a loan agreement with Tran Xuan Ha, Vice Minister of Finance in Vietnam on October 29, to provide USD 76 million through the Economic Development Cooperation Fund (EDCF) for three development projects implemented by the Vietnamese government near the Mekong River. The projects include the construction of GMS Southern Coastal Corridor, which is the main project of the Mekong River Development Plan.

* The Mekong River (GMS: Greater Mekong Subregion) Development Plan initiated by the Asian Development Bank in 1992 aims to alleviate poverty and foster sustainable economic development in six countries along the Mekong River including Cambodia, China, Laos, Myanmar, Thailand, and Vietnam.

The GMS Southern Costal Corridor Project involves the construction of a 942km long road connecting Bangkok in Thailand, Cambodia, to Camau in Vietnam and aims to relieve poverty and establish the foundation for sustainable growth in Vietnam. The corridor will strengthen connectivity among countries along the Mekong River. The project is to be co-financed by the ADB and AusAid, and EDCF will finance USD 70 million for this project.
* The GMS Southern Coastal Corridor Project is a part of ADB's GMS Program, and is one of the main nine corridors under construction.

In addition to the project, EDCF provided USD 180 million (USD 130 million to Vietnam, and 50 million to Cambodia) to four projects including the construction of Minlung-Tubai section of the GMS Southern Coastal Corridor.

According to an official of Korea Eximbank, "Recent EDCF assistance to Vietnam, a country with the most rapid growth among 6 countries along the Mekong River, is expected to provide opportunities for Korean enterprises to enter the Vietnamese market. The funds will ultimately contribute to expanding overseas markets for Korean businesses in countries along the Mekong River."

In addition, Chairman Dongsoo Kim of Korea Eximbank signed a loan agreement providing USD 3 million each to the Camau Hospital Improvement Project and the Gia Lai Aun Vocational Middle School Improvement Project which aim to provide medical equipment and develop educational infrastructure in Vietnam.

Chairman Kim met with Prime Minister Nguyen Tan Dung of Vietnam to discuss economic cooperation between the two countries.

During the meeting, Prime Minister Dung expressed gratitude for Korea Eximbank's active support of the Bamkong Construction Project and requested continued EDCF support for economic infrastructure construction projects which comprise the heart of Vietnam's Social Economic Development Plan initiating in 2011.
* The Bankong Construction Project involves construction of a 3km long bridge connecting the region divided by the Mekong River from east to west.

In response, Chairman Kim expressed his wishes for successful execution of projects in Vietnam financed by EDCF, and said that Korea Eximbank will put much effort to strengthening economic cooperation with Vietnam in view of strategic cooperation and partnership between the two countries.

Korea Eximbank is currently assisting 35 projects in Vietnam with USD 1 billion through the EDCF.

On the same day, Chairman Kim met with 11 Korean entrepreneurs who have expanded into Vietnam's construction market, including POSCO, and discussed overseas business development and future EDCF assistance.