Cambodia Starts Building $1.7 Billion Canal with China's Help

Prek Takeo, Cambodia – On Monday, Cambodia officially commenced construction on the $1.7 billion Funan Techo canal, a 180-kilometer project designed to connect the capital, Phnom Penh, to the Gulf of Thailand. The canal, which will be 100 meters wide and 5.4 meters deep, aims to reduce shipping costs to the country’s only deep-sea port in Sihanoukville and lessen reliance on Vietnamese ports. However, the project has raised environmental concerns and could potentially strain relations with neighboring Vietnam. Vietnamese analysts, including Nguyen Khac Giang from Singapore’s ISEAS-Yusof Ishak Institute, have expressed worries about the canal's impact on the Mekong Delta, particularly its rice production. While Vietnam has voiced its concerns discreetly, the project underscores Cambodia's growing ties with China, which plays a significant role in the nation’s political and economic landscape. The canal's construction is seen as a strategic move by Cambodia’s ruling elite to bolster support for Prime Minister Hun Manet, who succeeded his father, Hun Sen, last year. The groundbreaking ceremony coincided with Hun Sen's birthday, with thousands of supporters gathering at the site adorned with Cambodian flags. Hun Manet emphasized the canal's potential to enhance national prestige and development, asserting that Cambodian companies would maintain a 51% majority share in the project, despite the involvement of the Chinese state-owned China Road and Bridge Corporation. As Cambodia strengthens its partnership with China, it also navigates the delicate balance of regional diplomacy, particularly with Vietnam, amid ongoing territorial disputes in the South China Sea.