WB Approves $107M Loan to Enhance Inland Waterway Safety in Vietnam
The World Bank (WB) has agreed to provide a loan of $107 million to enhance the capacity, efficiency, and safety of inland waterways in southern Vietnam and reduce greenhouse gas emissions in the transport sector, state media reported.
The loan will finance the newly approved Southern Region Waterways and Logistics Corridor Development Project, which seeks to increase freight traffic and reduce travel time on the critical east-west and north-south transport corridors.
Once completed, the project is expected to connect key production hubs with Vietnam’s major deep-water port, boosting export competitiveness.
Ms. Mariam Sherman, World Bank Country Director for Vietnam, Cambodia, and Laos, stated that the waterways of Vietnam’s southern region have great potential to be a cheaper, greener, and safer mode of transport.
This project directly supports 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 reduce the distance between the Mekong Delta’s largest port of Can Tho and Vietnam’s busiest port of Ho Chi Minh City by approximately 30%.
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.