World Bank provides credit to enhance safety of southern inland waterways

The recently approved project for developing waterways and logistics corridors in the southern region of Vietnam aims to increase cargo volume and reduce transit time on the critical East-West and North-South transport corridors. The project will also connect key production centers with Vietnam’s main deep-water port, thereby enhancing export competitiveness.

According to Mariam Sherman, World Bank Country Director for Vietnam, Cambodia, and Laos, the inland waterways in southern Vietnam possess the potential to become a cheaper, greener, and safer mode of transport. This project directly supports Vietnam’s ambitious goals of promoting the competitiveness of inland waterway transport, reducing carbon emissions in the transportation sector, and boosting the country’s trade competitiveness.

The upgrade of the East-West transport corridor is expected to reduce the transport distance between the largest port in the Mekong Delta region in Can Tho and Vietnam’s busiest port in Ho Chi Minh city by approximately 30%. Additionally, the improvement of the North-South transport corridor will directly connect the Mekong Delta and inland areas with Vietnam’s main deep-water port, thereby facilitating international trade, reducing emissions, and lowering logistics costs.

On the other hand, the transition to inland waterway freight transport is crucial for reducing carbon emissions in Vietnam’s transportation sector. Road freight transport accounts for nearly 80% of greenhouse gas emissions within the sector, which is at least six times more carbon than waterway transport.

The southern waterways and logistics corridor development project also supports the installation of navigation aids and the improvement of sharp bends along the waterways, with the goal of enhancing safety. The project is expected to benefit agricultural producers, businesses, workers, vessel operators, and the local community in southern Vietnam.