The World Bank Board of Directors has approved a US$107 million credit to enhance the capacity, efficiency, and safety of inland waterways in southern Viet Nam. This initiative aims to reduce greenhouse gas emissions within the country's transport sector.
Southern Viet Nam’s Mekong Delta is a crucial region for agricultural and aquaculture production, serving both domestic consumption and exports. The newly sanctioned Southern Waterway Corridors and Logistics Development Project intends to increase cargo volumes and decrease travel times along key East-West and North-South corridors. Additionally, it will connect significant Vietnamese manufacturing centers to the country’s primary deep-sea port, thereby boosting export competitiveness.
“Viet Nam's southern waterways hold immense potential as a cheaper, greener, and safer alternative for transport,” said Mariam Sherman, World Bank Country Director for Viet Nam, Cambodia, and Lao PDR. “This project directly supports Viet Nam's ambitious goals: boosting inland waterway transport’s competitiveness, decarbonizing its transport sector, and ultimately enhancing the country's trade competitiveness.”
Improvements to the East-West Corridor are expected to cut the transport distance between Can Tho's largest port in the Mekong Delta and Ho Chi Minh City's largest port by volume by approximately 30%. Enhancements to the North-South Corridor will link the Mekong Delta and its hinterlands directly to Viet Nam’s main deep-sea port for international trade, thus reducing emissions and logistics costs.
Shifting more cargo onto inland waterways is seen as vital for decarbonizing Vietnam’s transport sector. Road trucking currently accounts for about 80% of the sector’s greenhouse gas emissions in Viet Nam and emits up to six times more carbon dioxide than waterways.
The project also includes introducing navigational aids and correcting sharp bends in the waterways to improve safety.
The initiative is anticipated to benefit farmers, businesses and their employees, vessel operators, and residents throughout southern Viet Nam.
Aligning with the World Bank’s goal of promoting shared prosperity on a livable planet, this project reflects recommendations from the World Bank’s Country Climate and Development Report for Viet Nam (2022), which advocates for inland waterways transport as a key measure to reduce greenhouse gas emissions in Viet Nam’s transport sector.