The World Bank has approved a US$107 million credit to enhance the capacity, efficiency, and safety of inland waterways in the southern region of Vietnam, while also aiming to reduce greenhouse gas emissions in the transport sector.
The newly approved southern region waterways and logistics corridor development project seeks to increase freight traffic and reduce travel time on the critical east-west and north-south transport corridors.
This project will connect key production hubs with Vietnam's major deep-water port, boosting export competitiveness.
According to Mariam Sherman, World Bank Country Director for Vietnam, Cambodia, and Laos, waterways of Vietnam's southern region have great potential to be a cheaper, greener, and safer transport mode.
This project directly support Vietnam's ambitious goals of enhancing inland waterway transport competitiveness, reducing carbon emissions in the transport sector, and boosting the country’s trade competitiveness.
Upgrading the east-west transport corridor will cut the transport distance by approximately 30 per cent between the Mekong Delta's largest port in Cần Thơ and Vietnam's busiest port in HCM City.
Improvements to the north-south transport corridor will directly connect the Mekong Delta and the hinterland with Vietnam's primary deep-water port, facilitating international trade, reducing emissions, and lowering logistics costs.
Shifting to inland waterway freight transport is crucial for reducing carbon emissions in Vietnam's transport sector.
Road freight, which accounts for about 80 per cent of greenhouse gas emissions in the transport sector, emits six times more carbon than waterway transport.
The project will also support the installation of navigation aids and the improvement of sharp bends on the waterway, enhancing safety.
The World Bank's 2022 country climate and development report for Vietnam identifies promoting inland waterway transport as one of the most impactful measures to reduce greenhouse gas emissions in the transport sector.
The Mekong Delta is a key region for Vietnam, leading the country in agricultural production and aquaculture for both domestic consumption and export.