Bridge Project to Enable Viet Nam to Meet Demands of Rapidly Growing Economy

MANILA, PHILIPPINES - Japan and the Asian Development Bank (ADB) are helping prepare a project that will include construction of two major bridges across the Mekong River in southern Viet Nam, in line with government efforts to upgrade and expand the country's transport system to meet the needs of the nation's growing economy.

The Japan Special Fund is extending an $800,000 grant to prepare the Central Mekong Delta Region Connectivity Project. ADB will manage the grant. The government of Viet Nam is providing $200,000 to complete the funding requirement.

The technical assistance will finalize the design for the construction of the two bridges, along with access roads and an interconnecting road. The proposed bridges will have a combined length of about 4,000 meters, with the access roads stretching about 28 kilometers. Toll plazas will also be installed.

The assistance will ensure that the project design will be suitable for ADB financing, as well as provide the resources needed to prepare the project itself and identify ways to address social, resettlement and other safeguard issues arising from the project implementation.

The project will provide adequate road capacity to sustain rapid economic expansion in the Mekong River Delta, where the third largest industrial hub of Viet Nam is located. Industrial production in the Mekong Delta Region has risen by an average annual growth rate of 24% in 2004-2005 from 13% in 2000-2004.

"Road traffic is growing rapidly in Viet Nam, and a key constraint to future economic development is the availability of efficient transport infrastructure with adequate capacity to meet expanding demand," said Peter Broch, Transport Economist of ADB's Southeast Asia Department.

Viet Nam is experiencing fast-paced economic growth fueled mainly by exports and tourism. Between 2003 and 2007, gross domestic product rose by an average 8% annually, while exports during the same period expanded by an average of about 20%. In response, the government is upgrading and expanding Viet Nam's strategic transport infrastructure - especially highways, railways and ports - to ensure sustained economic growth.

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