In many developing countries water is a key renewable resource to complement carbon-emitting energy production and support food security in the face of demand pressure from fast-growing industrial production and urbanization. To cope with undergoing changes, water resources development and management have to be reconsidered by enlarging their scope across sectors and adopting effective tools to analyze current and projected infrastructure potential and operation strategies. In this paper we use multi-objective deterministic and stochastic optimization to assess the current reservoir operation and planned capacity expansion in the Red River Basin (Northern Vietnam), and to evaluate the potential improvement by the adoption of a more sophisticated information system. To reach this goal we analyze the historical operation of the major controllable infrastructure in the basin, the HoaBinh reservoir on the Da River, explore re-operation options corresponding to different tradeoffs among the three main objectives (hydropower production, flood control and water supply), using multi-objective optimization techniques, namely Multi-Objective Genetic Algorithm. Finally, we assess the structural system potential and the need for capacity expansion by application of Deterministic Dynamic Programming. Results show that the current operation can only be relatively improved by advanced optimization techniques, while investment should be put into enlarging the system storage capacity and exploiting additional information to inform the operation.