through diplomatic channels; and

    (d) Details of each individual project and the Loan amount for the project shall be set out in and
        made available through a loan agreement (hereinafter referred to as a “Loan Agreement”) to be
        concluded between the Export-Import Bank of Korea (hereinafter referred to as the “Bank”) and
        the Ministry of Finance of Viet Nam representing the Vietnamese Government.


                                                        Article 3

1. The terms and conditions for each individual project shall be specified in each Loan Agreement to the
extent consistent with the Agreement and the provisions of this Arrangement. Each Loan Agreement shall
contain, inter alia, the following principles, unless otherwise agreed by the Parties:

    (a) The borrower of the Loan shall be the Vietnamese Government;

    (b) The repayment terms and the interest rate shall be specified in the Loan Agreement;

    (c) No interest shall accrue for the portion of the Loan covering the consulting services costs, in               case
        the consultant is selected from among Korean firms;

    (d) In the event that the Vietnamese Government fails to make payment of all or any portion of the
        principal of the Loan or any other amount due under the Loan Agreements, the unpaid amount
        shall bear an overdue charge at the rate of two percent (2%) per annum in addition to the interest
        rate specified in the Loan Agreements;

    (e) The eligible source countries for the procurement of goods and services including consulting
        services, to be financed out of the Loan shall be the Republic of Korea for the portion other than
        Vietnamese portion1) and the Socialist Republic of Viet Nam for the Vietnamese portion.
        Procurement from the third countries other than the eligible source countries, if any, may be
        acceptable if the Parties agree and shall be set out in the Loan Agreements;

    (f) Either the procurement or consulting contracts shall be concluded within eighteen (18) months from
        the effective date of each Loan Agreement;

    (g) Eligible suppliers for EDCF loan-financed projects shall be Korean companies. Considering the
        characteristics of individual projects, additional eligible suppliers may be allowed by the Korean
        Government; and

    (h) The Vietnamese Government shall ensure that import tax, special consumption tax, environment
        protection tax and value added tax imposed in the Socialist Republic of Viet Nam with respect to
        the purchase of materials, equipment and services for the project, which are procured or authorized
        to be procured by the Vietnamese executing agencies and which duly constitute the value of the
        project, be borne by the said agencies. In other cases, including the purchase of materials,
        equipment and services, procured by the suppliers for the project, which do not duly constitute the
        value of the project, the suppliers and other related organizations and individuals must comply
        with the laws and regulations of the Socialist Republic of Viet Nam on taxation. The suppliers of
        the project are obliged to pay corporate income tax and personal income tax in accordance with
        the laws of the Socialist Republic of Viet Nam, and in accordance with the provisions of the

  1) “Vietnamese portion” means the portion of the project cost payable to contractor(s) or consultant(s) for the goods and
      services manufactured in or provided by the borrower’s country.