TITLE:
A Study on the Impact of South Korea’s Official Developmental Assistance Policy toward Vietnam
AUTHORS:
Seungho Jeong
KEYWORDS:
Official Development Assistance, South Korea, Vietnam, Foreign Direct Investment, South Korea-Vietnam Relations
JOURNAL NAME:
Modern Economy,
Vol.9 No.8,
August
24,
2018
ABSTRACT: The purpose of this research paper is to study and
analyze the Official Development Assistance (ODA) policy of South Korea toward
Vietnam. The research methodology used was qualitative and relied on processed
information from secondary sources. It is noted that South Korea has been a
major foreign aid partner of Vietnam since it became a donor member of the
Development Assistance Committee (DAC). Currently, South Korea preferentially
gives Vietnam the largest share of its donor funds in the form of concessional
loans and grants. Also found in this investigation is that the main determinant
of this sizable ODA is in the form of commercial opportunities available in the
recipient country and the rich diplomatic relations shared by the two
countries. South Korea has realized commercial benefits such as an expanded
market for exports, employment opportunities for its citizens, and foreign
direct investment (FDI) chances in Vietnam as a result of this ODA volume. On
the other hand, Vietnam has used money received to immensely transform its
economy. In conclusion, the ODA policy of South Korea toward Vietnam has been
found to be largely beneficial for both countries.