WB approves $107 mln credit to boost southern Vietnam inland waterways

The World Bank on Friday approved a $107 million credit package to improve the capacity, efficiency, and safety of inland waterways in southern Vietnam, while cutting greenhouse gas emissions in the country's transport sector.

The credit will finance the Southern Waterway Corridors and Logistics Development Project, approved on the same day, which 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 the country’s main deep-sea port, enhancing export competitiveness. Infrastructure along inland waterways will be upgraded in eight provinces and cities.

The project’s total cost is $168 million, to be implemented by Vietnam’s Ministry of Transport until December 2029, according to the World Bank.

“Vietnam's southern waterways hold immense potential as a cheaper, greener, and safer alternative for transport,” said Mariam Sherman, WB country director for Vietnam, Cambodia and Laos.

“This project directly supports Vietnam's ambitious goals: boosting inland waterway transport’s competitiveness, decarbonizing its transport sector, and ultimately enhancing the country's trade competitiveness,” the newly-appointed country director added.

Upgrades to the East-West corridor will reduce transport distance between the Mekong Delta's largest port in Can Tho city and Vietnam's largest port by volume in Ho Chi Minh City by about 30%.

Meanwhile, North-South corridor improvements will connect the Mekong Delta and its hinterlands directly to Vietnam’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, the WB said. Road trucking, which contributes to about 80% of the transport sector’s greenhouse gas emissions in Vietnam, emits up to six times the carbon dioxide of waterways.

The project is expected to benefit farmers, businesses and their employees, vessel operators, and residents throughout southern Vietnam.

Source: The Investor