Sooeun Signs $2 Billion Economic Cooperation Fund Agreement with Vietnam Ministry of Finance

GS Energy and Vinacapital Sign MOU for Gas Combined Cycle Power Plant

The Export-Import Bank of Korea (KEXIM) announced on the 23rd that it has signed a Cooperation Arrangement with the Ministry of Finance of Vietnam to provide $2 billion in Economic Development Promotion Funds (EDPF) over the next eight years (2023?2030). The EDPF is a type of aid fund that offers long-term, low-interest loans for large infrastructure projects in developing countries, utilizing market funds borrowed by KEXIM.

According to KEXIM, President Yoon Hee-sung signed the Cooperation Arrangement with Vice Minister of Finance Bo Taing Hung at the Presidential Palace in Hanoi, Vietnam, in the presence of President Yoon Suk-yeol and Vietnamese State President Vo Van Thuong.

With the signing of this Cooperation Arrangement, the support limit and period for the Economic Development Promotion Funds have been pre-determined, allowing KEXIM and the Vietnamese government to focus on identifying suitable promising candidate projects.

After signing the Cooperation Arrangement, President Yoon stated, "The signing of this $2 billion Economic Development Promotion Funds Cooperation Arrangement will further strengthen economic cooperation between the two countries and greatly assist Korean companies' participation in infrastructure projects in Vietnam." He added, "We are currently discussing with the Vietnamese government the participation in several large promising transportation projects, including the new Ho Chi Minh City metro project and the light rail project connecting the new airport and new city in Ho Chi Minh City."

Meanwhile, KEXIM is also scheduled to sign a tripartite Memorandum of Understanding (MOU) with GS Energy and Vietnam's VinaCapital in the afternoon regarding financial support for a gas combined cycle power generation project. This project involves constructing and operating a 3GW gas combined cycle power plant in Long An Province, southern Vietnam, with an estimated total project cost of $3 billion.

GS Energy formed a strategic alliance with VinaCapital in November 2019 to promote the project and, with the support of KEXIM's feasibility study in 2021, ultimately secured the project rights from the Vietnamese government.

This content was produced with the assistance of AI translation services.