To be carried out by the Viet Nam Inland Waterways Administration, the work to dredge it and build embankments along the sides to prevent landslides is expected to cost around VND2 trillion (USD 117 million).

The canal, which is 80 metres wide and 28.5km long, is congested with vessels, with an estimated 1,800 of them with a capacity of up to 1,000 DWT passing through every day, according to the Ministry of Construction.

Dug in 1877 by the French and put into use in 1900, the canal comprises three sections linking the Vam Co and Tien Rivers.

The 10km Rach La section begins at the Vam Co River in Long An Province and the 7km Ky Hon section ends at the Tien River in Tien Giang Province. Between Rach La and Ky Hon sections is a man-made section running through Cho Gao District in Tien Giang and Chau Thanh District in Long An.

Deputy Minister of Construction Ngo Thinh Duc said the canal played an important role in the southern waterway transport system since it was the only channel linking the Vam Co and the Tien. It carried more than 60 per cent of the goods transported by water in the delta, he said.

The ministry has asked the administration to submit a report on the proposed work for final approval and report it to the Government for allocation of funds. The work is expected to begin at the end of this year and be completed in four years.