Inland Waterways in Vietnam: A Pathway to Efficient Transport Solutions

As Vietnam seeks to shift freight transport away from overburdened roads, inland waterways are emerging as a cost-effective and sustainable alternative.

Vietnam’s logistics sector is grappling with mounting pressure as road transport continues to dominate the movement of goods, accounting for approximately 80 percent of freight volume. This has led to congestion, high logistics costs, and safety concerns, prompting a reassessment of the national transportation mix.

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To ease the burden on road infrastructure and improve efficiency, the Ministry of Transport has announced a bold vision: increase the share of maritime and inland waterway transport to at least 50 percent. With a dense river network and an extensive coastline, Vietnam holds untapped potential to shift toward more sustainable and cost-effective modes of transport.

Inland waterways, in particular, offer a promising alternative. As a low-emission, high-capacity option, they can significantly reduce shipping costs and provide safer, more environmentally friendly logistics solutions. The recent push to revitalize and expand Vietnam’s inland waterway infrastructure reflects a strategic pivot, aiming at transforming the nation’s transportation landscape and unlocking new opportunities for trade and investment.

Vietnam’s inland waterways at a glance

Vietnam boasts one of the most extensive inland waterway networks in Southeast Asia, with over 26,500 kilometers of navigable rivers and canals crisscrossing the country. This vast system positions the country as a natural candidate for waterborne logistics, particularly as it looks to diversify away from congested road networks.

The inland waterway infrastructure is anchored by two major river systems: the Red River in the North and the Mekong River in the South. These rivers are vital trade arteries and also connect ports, industrial zones, and cross-border corridors.

Supporting this network are more than 8,200 berths and 2,526 passenger terminals, which play a critical role in facilitating both freight and human mobility across Vietnam’s delta regions and hinterlands. However, infrastructure bottlenecks persist, particularly in the form of aging bridges. Out of 653 bridges crossing the nation’s waterways, 251 have low air clearance or limited spans, significantly hindering the passage of large vessels. Among the most urgent cases requiring reconstruction to ensure safe navigation are the Long Bien, Duong, Chui, and Binh Loi bridges.

Despite these challenges, the scale and density of Vietnam’s inland waterways underscore their potential to become a cornerstone of the country’s next-generation transport strategy.

Highlight: DP World’s new sea-river route

In a move that underscores the growing momentum behind Vietnam’s inland waterway transformation, global logistics giant DP World has launched a domestic sea-river transport route connecting Can Tho and Cai Mep. Officially operational as of May 30, this initiative marks a significant leap forward in reducing transport times and expanding multimodal connectivity across southern Vietnam.

The newly established route dramatically cuts the travel time from 48 hours to just 15, thanks to an efficient combination of river and sea transport. It also shortens the journey distance from approximately 367 kilometers to 200 kilometers, offering a more sustainable and cost-effective logistics solution for cargo owners.

Designed to accommodate both dry and cold chain logistics, the route can transport hundreds of twenty-foot equivalent units (TEUs) per voyage, including refrigerated containers. This benefits agricultural exporters and manufacturers needing cold-chain solutions.

Looking ahead, DP World and its Vietnamese partner VIMC Container Lines plan to expand the service to include calls at Saigon Premier Container Terminal and Saigon Hiep Phuoc Port, enhancing its reach and integration into Vietnam’s broader port ecosystem.

This project showcases how public-private partnerships can align global logistics expertise with national development goals to unlock the inland waterways’ full potential

Key waterway corridors in Vietnam

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Vietnam’s inland waterway network is anchored by a series of key transport corridors that support economic activity across the country’s major regions. These routes facilitate domestic freight flows and link Vietnam to global supply chains.

At the core of the system lies the North–South Inland Waterway Corridor, stretching from Quang Ninh in the northeast to Kien Giang in the southwest. This corridor acts as the central spine of Vietnam’s inland transport system, linking industrial and agricultural hubs with key seaports and container depots across the country.

In the Mekong Delta, two strategic routes stand out:

• Ho Chi Minh City – Can Tho – Ca Mau, which supports the movement of goods and people across the agriculturally rich southern provinces; and
• Ho Chi Minh City – An Giang – Kien Giang, vital for cross-border trade with Cambodia and for transporting bulk goods such as rice, seafood, and construction materials.

In the north, several high-traffic economic corridors connect urban and industrial centers:

• Quang Ninh – Hai Phong – Hanoi, which links coastal ports with the national capital and is integral for containerized trade;
• Hanoi – Nam Dinh – Ninh Binh, which supports regional commerce in the Red River Delta; and
• Hanoi – Viet Tri – Lao Cai, which runs along the Red River, extends toward Vietnam’s border with China, playing a key role in cross-border logistics and trade.

These corridors are not only critical to current freight flows but are also central to government plans for upgrading infrastructure and establishing multimodal logistics chains that combine river, road, rail, and sea transport.

Priority projects and future development plans (2021–2030)

Vietnam is undertaking a comprehensive overhaul of its inland waterway system as part of its 2021-2030 transport development strategy. With a focus on improving connectivity, navigational safety, and freight efficiency, a series of high-priority infrastructure projects is being rolled out, many backed by international development support.

Two flagship initiatives are the WB6 and WB5 projects, funded by the World Bank, with a combined investment exceeding US$700 million. These projects aim to improve waterway transport infrastructure in both the Red River and Mekong Delta regions, facilitating smoother interprovincial and cross-border logistics.

Key upgrade areas include:

• Cho Gao Canal (Phase I & II): One of the most heavily trafficked inland waterways in the south, the Cho Gao Canal is undergoing phased improvements to increase depth and width, enabling two-way traffic and access for larger vessel;
• Duong River Railway Bridge: The clearance upgrade of this bridge is critical to enhancing vessel movement along the Red River system and eliminating bottlenecks near Hanoi;
• Northern Waterway Corridor Enhancements: The route connecting Quang Ninh, Hai Phong, Thai Binh, Nam Dinh, and Ninh Binh is being modernized to handle larger vessel sizes and reduce transit times in one of the country’s most active industrial belts;
• Bridge Clearance Improvements: Improving navigational clearance at critical bottlenecks, including the Long Bien, Duong, and Binh Loi bridges, is a central focus, enabling uninterrupted passage for high-tonnage vessels and enhancing regional connectivity; and
• Southern Logistics and Port System Modernization: Investments aim to expand port capacity, improve multimodal links to road and rail networks, and create integrated logistics hubs that support container and bulk cargo operations in the Mekong Delta and southeastern provinces.

Together, these projects are set to transform Vietnam’s inland waterway infrastructure, positioning it as a competitive, reliable, and sustainable mode of freight transport within the country and across its regional trade corridors.

Opportunities from Vietnam’s inland waterways

As Vietnam accelerates its shift toward inland waterway transport, unlocking the country’s full potential will depend on targeted investment and enabling policies that address current structural bottlenecks.

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A key challenge lies in the outdated composition of the current vessel fleet. Much of Vietnam’s inland water transport still relies on small, general-purpose ships, which are inefficient and undersized for container shipping. There is a growing need to develop modern container fleets, particularly vessels around 1,700 TEU capacity, to meet the evolving demands of domestic and international trade.

However, high capital costs and financial barriers are deterring private sector participation. The expense of acquiring or importing modern ships is compounded by value-added tax (VAT) rates of up to 10 percent and elevated bank interest rates. Industry leaders advocate for soft loans, tax breaks, and reduced container leasing taxes to spur investment.

To support this transformation, the government is actively promoting public-private partnerships (PPPs) and offering investment incentives aimed at expanding both the inland fleet and port infrastructure. One area of focus is the development of port clusters that are fully integrated with road and rail networks, allowing for more efficient multimodal transport.

Additionally, the creation of inland waterway logistics hubs is central to Vietnam’s long-term vision. These hubs are designed to serve as multimodal gateways, enabling smoother cargo transfers between barges, trucks, and railcars while reducing congestion at coastal seaports.

For investors, logistics providers, and shipbuilders, these developments offer a unique window of opportunity to participate in a rapidly modernizing segment of Vietnam’s transport landscape.

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