WASHINGTON, June 21, 2024-The World Bank Board of Directors today approved a US$107 million credit to improve the capacity, efficiency, and safety of inland waterways in southern Viet Nam while cutting greenhouse gas emissions in the country's transport sector.
Southern Viet Nam's Mekong Delta is the leading agricultural and aquaculture region of Viet Nam for both domestic consumption and exports. The newly approved Southern Waterway Corridors and Logistics Development Project aims to increase cargo volumes and reduce travel times along the vital East-West and North-South corridors. The project will also link key Vietnamese manufacturing centers to country's main deep-sea port, enhancing 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."
Upgrades to the East-West Corridor will reduce transport distance between the largest port in the Mekong Delta at Can Tho and the largest port by volume in Vietam at Ho Chi Minh City by about 30%. North-South Corridor improvements will connect the Mekong Delta and its hinterlands directly to Viet Nam's main deep-sea port for international trade, reducing emissions and logistics costs.
Shifting more cargo onto inland waterways is critical for decarbonizing Vietnam's transport sector. Road trucking, which contributes to about 80% of the transport sector's GHG emissions in Viet Nam, emits up to six times the carbon dioxide of waterways.
The project also introduces navigational aids and corrects sharp bends in the waterways, improving safety.
The project is expected to benefit farmers, businesses and their employees, vessel operators, and residents throughout southern Viet Nam.
The project aligns with the World Bank's goal of boosting shared prosperity on a livable planet. The World Bank's Country Climate and Development Report for Viet Nam (2022) promotes inland waterways transport as one of the most impactful measures to reduce GHG emissions in Viet Nam's transport sector.
