South Korea, Vietnam Expand Cooperation on Urban and Transport Infrastructure

The South Korean government said it will step up cooperation with Vietnam on urban and transport infrastructure, including a contract to supply metro rail cars and efforts to identify local infrastructure development projects, following President Lee Jae-myung’s state visit to Vietnam.
 
The Ministry of Land, Infrastructure and Transport said Kim Yun-deok, the land minister, met on April 21 with Vietnam’s construction minister, Tran Hong Minh, and asked for strong interest and support from the Vietnamese government for South Korea’s participation in the development of a new town in southeastern Bac Ninh province.
 
Kim said he “deeply sympathizes” with Vietnam’s push to devolve central authority to local governments, adding that he hopes the Korea Land and Housing Corp. and Vietnamese local governments can work together and “grow together” in areas such as new-town development.
 
He also introduced South Korea’s high-speed rail technology and discussed ways to support participation by South Korean companies in Vietnam’s North-South high-speed rail project.
 
The ministry said the two sides also discussed strategic cooperation on infrastructure modernization, transportation and urban development projects at a “Korea-Vietnam Co-Prosperity Development Cooperation Forum” held the same day.
 
On April 22, Kim attended a completion ceremony for a mixed-use complex in Starlake City in Hanoi and encouraged construction officials. The Starlake City project is an urban development venture that South Korea and Vietnam have worked on since 2006. The newly completed complex is a large-scale facility combining offices, a hotel and commercial space, and was developed by South Korean firms including Daewoo Engineering & Construction from planning through operations.
 
On April 23, during a Korea-Vietnam business forum, major government bodies and companies from both countries signed a contract to supply metro rail cars for Ho Chi Minh City’s Line 2, and KIND signed an MOU with the Bank for Investment and Development of Vietnam and Hana Bank.
 
The ministry said the Ho Chi Minh City Line 2 contract marks the first entry into Vietnam’s rail-car sector. It added that KIND plans to work with BIDV, a key state-owned bank, to identify promising projects in Vietnam and link them to financial support to strengthen the foundation for South Korean companies’ expansion there.