The loan, sourced from the RoK’s Economic Development Cooperation Fund (EDCF), has an interest rate of 0.15% per year over 35 years, including a 10 year grace period.
 

It will be used to supply medical equipment to the National Ear, Nose and Throat Hospital in Hanoi, as part of an agreement worth US$1.2 billion signed between the governments of Vietnam and RoK over 2012-2015.

The project aims to improve environmental sanitation through the treatment and prevention of ear, nose and throat diseases, contributing to the success of the country’s socio-economic development in particular and United Nations Millennium Development Goals (MDGs) in general.

Previously, from 2008 to 2011, the Korean Government pledged to offer US$1 billion to Vietnam for projects in such fields as transportation, health care, water supply, and vocational training.