High-speed HCMC-Long Thanh boat link can ‘transform’ local lifestyle, boost tourism: RMIT experts

By Bao Ngoc
Fri, June 21, 2024 | 8:08 am GMT+7

Integrating high-speed boats into HCMC’s transportation framework will have impacts extending beyond convenience, significantly boosting the local economy, particularly the tourism and retail sectors, say experts with RMIT Vietnam.

 An aerial view of the Saigon River, Ho Chi Minh City. Photo courtesy of Tuoi Tre (Youth) newspaper.

An aerial view of the Saigon River, Ho Chi Minh City. Photo courtesy of Tuoi Tre (Youth) newspaper.

The Long Thanh airport, located around 40 kilometres east of HCMC, is currently under construction in Dong Nai province. Its first phase is expected to be completed in 2026.

The RMIT experts have welcomed a draft report prepared by by the HCMC Department of Transport that proposes three potential waterway connections between HCMC and Long Thanh airport including high-speed boats from Bach Dang Wharf (District 1) to Swan Bay Marina (Nhon Trach, Dong Nai).

The other two connections cover ground transport from Swan Bay Marina to the airport with a new cross-river passenger wharf from Phuoc Khanh in HCMC’s Nha Be District to Nhon Trach in Dong Nai province; and enhancing the existing Cat Lai ferry service (HCMC).

The department has invited stakeholder feedback for the proposal.

The report notes that HCMC has over 900 kilometres of waterways and its road networks are 50% compatible with water transportation.

The Saigon River and its adjoining canal system links numerous provinces and cities, but both traffic and waterway tourism in the area has not been developed to potential, it adds.

Dr Majo George, senior lecturer with the Logistics and Supply Chain Management program in The Business School, RMIT Vietnam, applauded the initiative.

“Introducing high-speed boats as part of a water metro system and extending water transport for cargo will transform the city's transport dynamics and economic landscape”, he said.

The potential economic benefits of this innovative transportation method are considerable. HCMC can lower business logistics expenses and alleviate transport congestion by shifting a significant portion of commuter and container transportation from roads to waterways. This shift also reduces the likelihood of passengers missing their flights due to traffic jams, enhancing the efficiency of the airport and the city’s overall transportation network.

Beyond passenger transportation, this initiative will also benefit ship freight. Using waterways for both passenger and cargo transport will maximise economic benefits and enhance the overall efficiency of the city's transportation network, said George.

He cited a World Bank report as saying efficient logistics was key to Vietnam’s competitiveness in the global market.

However, this initiative will have to contend with several major challenges including high infrastructure costs and operational risks due to weather conditions, he cautioned.

Implementing high-speed boat services requires meticulous planning and significant investments in infrastructure, including docking facilities and navigational safety measures.

George said securing funding for such an ambitious project will require a multifaceted approach that leverages various investment sources. Potential funding avenues include foreign direct investment (FDI), which can bring substantial capital and international expertise; the build-transfer-operate (BTO) model and public-private partnerships (PPP), he said.

Another option was to seek assistance from foreign governments and international agencies like the World Bank or the Asian Development Bank that can provide financial aid and technical support through grants, loans and consultancy services.

Dr Nuno Ribeiro, senior lecturer with RMIT Vietnam’s Tourism and Hospitality Management program and vice-chairman of the Vietnam EuroCham Tourism and Hospitality Sector Committee, said a waterway connection between HCMC and the Long Thanh airport presented major advantages from a tourist development perspective.

Similar initiatives have been implemented successfully in other destinations situated near waterways such as Bangkok (Thailand) and Siam Reap (Cambodia), Hong Kong, Kobe/Kansai (Japan), and Lofoten (Norway), he said.

“Given the growth projections for tourism in the coming years for Vietnam, I applaud this initiative. High-speed boats will provide an efficient alternative to the city's congested roads for incoming airport passengers and will allow quick transit to several destinations in the city, such as District 1, 4 or 2. Enhanced accessibility to key tourist attractions will offer visitors more convenience, boosting tourism satisfaction levels.”

Fast, comfortable, and reliable transportation was indispensable for the success of Vietnam’s tourism sector. Research has shown that interconnectedness between transport and tourism was one of the more important relationships in the tourism system, Ribeiro said.

“High-speed boats emit fewer pollutants per passenger mile compared to buses and taxis, helping to reduce the city's carbon footprint, and addressing sustainable tourism development concerns. The scenic routes along HCMC's iconic river and affluent areas offer recreational value, transforming commutes into picturesque voyages. This will contribute positively to the city’s destination image and increase its revisitation rate,” he added.

The technological aspects of this initiative should be carefully considered, said associate professor Dinh Ngoc Minh, deputy dean, research and innovation in the School of Science, Engineering & Technology, RMIT Vietnam.

“Implementing a high-speed water transport system between HCMC and Long Thanh airport requires integrating advanced technologies to ensure efficiency, convenience and connectivity. Utilising smart card technology like Hong Kong’s Octopus card can significantly enhance user experience and streamline operations,” he said.

Very smart option

Minh enumerated many advantages of smart card technology, including seamless connectivity, enhanced security and effective data collection and management.

“Smart cards enable effortless travel across various transport modes including buses, trains and boats, eliminating the need for multiple tickets and simplifying the passenger experience. They offer robust security features, including biometric authentication, to protect user data and reduce fraud risk.

“They also collect valuable data on travel patterns and passenger preferences, which can be used to optimise routes, improve services, and boost operational efficiency,” he said.

Elaborating further on the advantage of smart cards, Minh said they could be used for retail payments, access to public facilities and tourism attractions, and other services. Such versatility has increased their utility and encouraged widespread adoption. Several cities like Hong Kong, Singapore, and London have successfully implemented innovative card systems, demonstrating their effectiveness and benefits, Minh added.

For HCMC, adopting a smart card system would require collaboration between transport authorities, banks, and retailers. The system should be user-friendly, secure, and compatible with existing infrastructure.

Integrating advanced smart card technology into HCMC’s water metro and other transport services can significantly enhance user experience, improve operational efficiency, and promote sustainable development, he said.

Ribeiro said the waterway initiative could “transform the way residents and visitors navigate the city." “With careful planning and execution, HCMC can set a new benchmark for urban transportation in Vietnam and beyond, embarking on a transformative journey towards a smarter, more sustainable future.”

Comments (0)
  • Read More
VinFast’s Nasdaq debut featured world’s biggest merger: UNCTAD

VinFast’s Nasdaq debut featured world’s biggest merger: UNCTAD

The Nasdaq listing of of Vietnamese EV maker VinFast via a $23 billion reverse merger with a US-based SPAC was the biggest merger & acquisition (M&A) deal in the world in 2023.

Economy - Mon, June 24, 2024 | 4:13 pm GMT+7

Vietnam embraces digital payment trend

Vietnam embraces digital payment trend

Vietnam gathers sufficient conditions to take on the current digital payment trend, which can bring about several potential implications, writes Thuy Do, country head of Global Payments Solutions, HSBC Vietnam.

Banking - Mon, June 24, 2024 | 2:52 pm GMT+7

Bright prospects for Vietnam consumer goods stocks

Bright prospects for Vietnam consumer goods stocks

With consumption expected to recover in the second half of 2024, a brighter macro situation, salary increases, and value added tax cuts, consumer goods businesses are forecast to see improved profits on top of their Q1 growth.

Finance - Mon, June 24, 2024 | 1:52 pm GMT+7

Masan Group says SK Group has yet to sell its shares

Masan Group says SK Group has yet to sell its shares

Masan Group, a leading consumer goods conglomerate in Vietnam, has affirmed that South Korean chaebol SK Group has not unloaded Masan shares as reported by Korean media.

Companies - Mon, June 24, 2024 | 11:51 am GMT+7

Apple supplier Wistron plans new $24.5 mln plant in northern Vietnam

Apple supplier Wistron plans new $24.5 mln plant in northern Vietnam

Taiwan-headquartered electronics manufacturer Wistron, a major Apple supplier, is set to invest $24.5 million in a new factory in Vietnam’s northern province of Ha Nam.

Industries - Mon, June 24, 2024 | 10:55 am GMT+7

Central Highlands province Lam Dong attracts $4.9 billion in new investments

Central Highlands province Lam Dong attracts $4.9 billion in new investments

The Central Highlands province of Lam Dong on Sunday gave in-principle approvals, investment registration certificates and memoranda of understanding to 12 projects with total registered capital of VND125 trillion ($4.91 billion).

Infrastructure - Mon, June 24, 2024 | 10:05 am GMT+7

Vincom Retail stocks drop to historic low

Vincom Retail stocks drop to historic low

Contrary to the general market recovery since September 2023, shares of the top mall operator in Vietnam, Vincom Retail JSC, listed on the Ho Chi Minh Stock Exchange as VRE, have not been able to escape the doldrums.

Companies - Mon, June 24, 2024 | 9:20 am GMT+7

Positive Q2 corporate earnings to drive Vietnam stock market: expert

Positive Q2 corporate earnings to drive Vietnam stock market: expert

Expected positive corporate earnings in the second quarter could provide support and push Vietnam’s stock market up, Dinh Quang Hinh, head of macro and market strategy at Hanoi-based securities firm VNDirect, told The Investor.

Finance - Mon, June 24, 2024 | 8:06 am GMT+7

Former Asanzo Group chairman subject to legal proceedings for tax evasion

Former Asanzo Group chairman subject to legal proceedings for tax evasion

Pham Van Tam, chairman of Vietnamese electronics major Asanzo Group JSC, used illegal invoices to evade taxes worth over VND15.7 billion ($616,800).

Society - Sun, June 23, 2024 | 11:27 pm GMT+7

US a partner of strategic importance of Vietnam: Foreign Minister

US a partner of strategic importance of Vietnam: Foreign Minister

Minister of Foreign Affairs Bui Thanh Son has affirmed that Vietnam always considers the U.S. a partner of strategic importance at a reception for visiting US Assistant Secretary of State for East Asian and Pacific Affairs Daniel J. Kritenbrink.

Politics - Sun, June 23, 2024 | 7:59 pm GMT+7

Semiconductor firms in Vietnam struggling to recruit chip design engineers: expert

Semiconductor firms in Vietnam struggling to recruit chip design engineers: expert

Several semiconductor firms in Vietnam are struggling to recruit engineers, particularly chip design specialists, said an expert.

Companies - Sun, June 23, 2024 | 4:51 pm GMT+7

Prime Minister inspects 500kV transmission line project in Thanh Hoa province

Prime Minister inspects 500kV transmission line project in Thanh Hoa province

Prime Minister Pham Minh Chinh on Saturday inspected the 500kV Circuit-3 Quang Trach-Pho Noi power transmission line project's section crossing the central province of Thanh Hoa.

Energy - Sun, June 23, 2024 | 4:42 pm GMT+7

Businesses concerned over removal of VAT exemptions

Businesses concerned over removal of VAT exemptions

The abolition of the 0% value-added tax for export products and services will likely raise product costs and reduce Vietnamese products’ ability to compete internationally, said industry insiders.

Companies - Sun, June 23, 2024 | 4:37 pm GMT+7

Banking stocks remain attractive: broker

Banking stocks remain attractive: broker

Banking stocks are expected to be in a rising wave and lead the market in the second half of this year, said Nguyen Anh Khoa, head of investing at Agribank Securities (Agriseco).

Finance - Sun, June 23, 2024 | 1:17 pm GMT+7

Construction giant Coteccons subsidiary bids for $419 mln southern Vietnam residential project

Construction giant Coteccons subsidiary bids for $419 mln southern Vietnam residential project

A consortium comprising Covestcons Co. Ltd and BEHS Joint Stock Company is the sole applicant for developing a VND10.66 trillion ($418.8 million) commercial-residential project in Long An province.

Real Estate - Sun, June 23, 2024 | 9:57 am GMT+7

Investment corp. IPA targets 24% rise in 2024 pre-tax profits, plans rights offering

Investment corp. IPA targets 24% rise in 2024 pre-tax profits, plans rights offering

Vietnamese investment holding company I.P.A Investments Group JSC has set revenue and pre-tax profit targets of VND1.08 trillion ($42.43 million) and VND425 billion ($16.7 million) for 2024, up 211% and 24% year-on-year, respectively.

Companies - Sun, June 23, 2024 | 9:00 am GMT+7