A Study on the Impact of South Korea’s Official Developmental Assistance Policy toward Vietnam

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.