Enhancing Mekong Delta transportation capability

Impediments

In recent years, the government has prioritized investment in upgrading the transport infrastructure of the Mekong Delta. Bridges, such as Can Tho, Ham Luong, Rach Mieu, Co Chien, and the international airports of Can Tho and Phu Quoc have been built, facilitating traffic between delta localities and the rest of Vietnam, as well as the world.

Rapid development of transport infrastructure facilities has facilitated the transportation of passengers and goods, contributing to enhancing the capability and efficiency of the regional logistics sector.

However, the regional logistics network still faces many problems that prevent it from fulfilling its potential. According to the Transport Development and Strategy Institute, 70-80 percent of agricultural exports from the Mekong Delta are transported via seaports in Ho Chi Minh City and Ba Ria-Vung Tau Province.

Transport by inland waterways, although an advantage of the region, remains limited. The combination of waterway and land transport is still weak. More than 200 bridges are incapable of serving vessels with high loading capacity. Most landings in inland areas still lack the equipment and service facilities necessary to serve multimodal transport forms.

Currently, businesses in the Mekong Delta have to transport 70 percent of their products by land, which costs them 10-60 percent more than other transport forms. A World Bank report shows that about 90 percent of container transportation between Ho Chi Minh City and Can Tho Province is conducted overland.

Better waterway transport crucial

The Ministry of Industry and Trade forecast that the volume of goods transported via the ports in the Mekong Delta will increase rapidly from now to 2030 and reach 25-28 million tonnes by 2020 (including 11-14 tonnes of general goods and container freight). The transport volume is predicted to triple by 2030. The Mekong Delta has the potential to attract investment in logistics service development to facilitate import, export activities.

Under Prime Ministerial Decision 1012/QD-TTg approving the plan to develop central logistics systems nationwide until 2020, with an orientation towards 2030, Mekong Delta localities need to develop satellite logistics centers around industrial zones and ports to connect them with regional logistics centers, catering for the circulation and distribution of goods in the delta.

The city of Can Tho has prepared a plan to develop the Mekong Delta’s logistics center covering 242.2ha in the city and is seeking domestic and foreign investments in the center.

To promote logistics service development, the Mekong Delta needs to concentrate on enhancing the service capabilities of marine, land, inland waterway and air transport, developing goods distribution and logistics service centers in Can Tho, Hau Giang, Kien Giang, Dong Thap and An Giang. Experts advise that by doing so, the region would promote trade with neighboring countries, such as Thailand and Cambodia. In addition to improved logistics, transportation and forwarding services require upgrading and the administrative procedures applied to logistics services should be simplified.