South Korea will provide $41 million in soft loans to Vietnam so the Southeast Asian country can expand its waterworks infrastructure, the finance ministry said Thursday.
The money, to come from the Economic Development Cooperation Fund, will be used in the second phase of the Thien-Tan project in Dong Nai province that is expected to be completed in late 2017, according to the ministry.
The province, located some 45 kilometers from Ho Chi Ming City, has good port and air transportation systems and is being built up as a key industrial hub. There are some 300 South Korean-run factories in the region.
The EDCF is a state-run fund launched in 1987 that aims to help emerging countries with loans that carry low interest rates. Since it was established, Seoul has provided more than 10 trillion won ($9 billion) in aid.
"The waterworks project will be able to provide fresh water for nearby industrial parks and contribute to improving living standards of people in the region," the ministry said.
South Korea offered $26 million in soft loans during the first phase of the Thien-Tan waterworks that was completed in 2004. (Yonhap)
