The motorized ship sank in the Yway river Tuesday after water entered its stern section, the New Light of Myanmar newspaper reported. The report did not give details on how the accident happened.
The newspaper said 38 people were killed and 44 others rescued.
The ferry, named "Myo Pa Pa Tun," was traveling from Pakeikkyi village to Myaungmya, about 94 miles west of Yangon, the newspaper said. Myaungmya was not badly affected by Cyclone Nargis, which left a swath of death and devastation in the delta when it struck in early May. More than 84,000 died in the storm.
People living in Myanmar's vast delta region often travel and transport goods by boat because of the lower cost and inaccessibility of many areas by road.
Boat accidents are common in Myanmar's river deltas and coastal regions. In May, a ferry collided with another passenger boat in Twantay canal near Yangon killing at least 6 people.