A tunnel under the Saigon River in Ho Chi Minh City, southern Vietnam, will be built as part of a $640m East-West highway that will be financed by Japanese agencies.

The Ho Chi Minh City government and the Japan Bank for International Co-operation have signed a preliminary agreement for the scheme to go ahead.

Other parts of the project include expanding the existing road along the Ben Nghe and Tau Hu canals and constructing a road linking Thu Thiem with the Hanoi Highway.