Construction on southern Vietnam's largest waterway infrastructure project to start in late 2026

The Ministry of Construction has confirmed plans to launch construction of a $168.8 million waterway and logistics corridors development project in southern Vietnam by the end of 2026.

The project, the largest waterway infrastructure project in southern Vietnam, is currently in the technical design and land clearance preparation stage. Construction is scheduled to begin by the end of 2026 and be completed in 2030, the ministry stated in response to a petition from voters in Dong Thap province.

Accordingly, the project will upgrade two key transport corridors in the southern region — the East-West and North-South waterways — aimed at easing congestion, lowering logistics costs and improving regional connectivity.

The petition called for early implementation of dredging works on the Tra River channel to connect with the Cho Gao Canal in order to boost maritime-linked economic activity and reduce transportation costs.

According to the ministry, the Tra River (Rach La) plays an important role in the inland waterway network linking the Mekong Delta with logistics hubs in southern Vietnam.

The channel was previously dredged under the first phase of the Cho Gao Canal upgrade project, completed in 2015 by the former Inland Waterways Project Management Unit under the transport ministry, which has since been merged with the Ministry of Construction.

In 2023, the transport ministry approved the Southern Waterway and Logistics Corridors Development Project, funded by loans from the World Bank.

The project aims to improve inland waterway infrastructure, reduce congestion and accidents, and lower cargo transport costs by upgrading two strategic freight corridors.

The East-West corridor will connect the Mekong Delta with regional logistics systems, while the North-South corridor will link the southeastern region with the deep-water port complex of Cai Mep-Thi Vai Port (located in the former Ba Ria-Vung Tau province, now part of Ho Chi Minh City).

Once completed, the project is expected to support socio-economic development while strengthening national defense and security capacity in provinces across the Mekong Delta and southeastern Vietnam.

Planned works along the East-West corridor include removing bottlenecks on several key rivers and canals, such as the Hau River in Can Tho, the Tra On, Mang Thit and Co Chien rivers, the Cho Lach Canal, the Tien River, Ky Hon Creek, Cho Gao Canal, Rach La, the Vam Co River, Nuoc Man Canal, the Can Giuoc River and the Soai Rap River in HCMC.

Meanwhile, the North-South corridor will see upgrades along waterways including the Dong Nai River near Dong Nai Port, the Nha Be, Long Tau, Dong Tranh, Tac Cua and Go Gia rivers, and the Thi Vai River connecting to the Cai Mep-Thi Vai port cluster.

Under the project plan, the East-West corridor will be upgraded to meet Vietnam’s Class II inland waterway standard, allowing self-propelled vessels of up to 600 tons and three-tier container barges to operate around the clock. Vessels of up to 1,500 tons will also be able to navigate during high tides.

On the Tra River section in Dong Thap, works will include dredging the channel, widening two river bends to meet Class II navigation standards, and building protective embankments at those locations.

The ministry has asked Dong Thap authorities to support the project, particularly in land clearance efforts, to ensure timely implementation and help improve logistics capacity and economic development across the Mekong Delta region.

Tien Giang and Dong Thap provinces were merged last July to form the new Dong Thap, which neighbors An Giang, Tay Ninh, Vinh Long, Can Tho, Ho Chi Minh City, Cambodia, and the East Sea.