Government of Can Tho has invited private investment to finance dredging activities at the Dinh An fairway along the Hau River, a branch of the Mekong in Vietnam. The VND500 billion dredging project will widen a 34 km portion of the fairway to 200 metres wide and 6.5 metres deep.
Dredging activities are scheduled to commence in 2023. Once completed, the fairway will be able to accept 10,000-ton ships and larger vessels, boosting the capacity of 13 ports along the Hau River.
The government will also offer investors rent exemption for 15 years for land used to deposit dredged mud as well as a 50 per cent rent discount for the period after. In addition, instead of the existing 20 per cent corporate income tax, they will pay a 10 per cent tax for the 15 year period.
Dinh An fairway is 234 km long. However, because of severe sedimentation, ships weighing 10,000 to 20,000 tonnes have been unable to pass, slowing down port operations in Can Tho.