{"id":846178,"date":"2025-11-13T22:51:16","date_gmt":"2025-11-13T22:51:16","guid":{"rendered":"https:\/\/globalvoices.org\/?p=846178"},"modified":"2025-11-14T03:26:31","modified_gmt":"2025-11-14T03:26:31","slug":"this-canal-project-aims-to-elevate-cambodias-economy-but-what-does-it-mean-for-the-mekong","status":"publish","type":"post","link":"https:\/\/globalvoices.org\/2025\/11\/13\/this-canal-project-aims-to-elevate-cambodias-economy-but-what-does-it-mean-for-the-mekong\/","title":{"rendered":"This canal project aims to elevate Cambodia\u2019s economy, but what does it mean for the Mekong?\u00a0"},"content":{"rendered":"
\"The

The Mekong river stretches across six countries: China, Myanmar, Thailand, Laos, Cambodia, and Vietnam. <\/span>Image from Flickr<\/a>. CC BY 4.0<\/a><\/p><\/div>\n

This article was submitted as part of the Global Voices Climate Justice fellowship, which pairs journalists from Sinophone and Global Majority countries to investigate the effects of Chinese development projects abroad.\u00a0Find more stories here<\/a>.<\/em><\/p>\n

Around <\/span>10,000 people<\/span><\/a> dressed in white polo shirts gathered near the Mekong River in Prek Takeo Village in Cambodia\u2019s Kandal province on August 5, 2024. <\/span>A huge stage<\/span><\/a> with yellow and blue decorations floated above the water, with colorful balloons and Cambodia\u2019s flag swaying here and there. At 9:09 am, the sound of bells, gongs, and drums echoed across Cambodia as Prime Minister Hun Manet took the stage and pressed a symbolic button. <\/span>\u00a0<\/span><\/p>\n

It was the groundbreaking ceremony for the construction of a new mega project called the Funan Techo Canal, which was attended by many high-profile guests from across the world.\u00a0<\/span><\/p>\n

Cambodians were required to celebrate the groundbreaking ceremony with a one-day <\/span>national holiday<\/span><\/a>. The ceremony was broadcast by every state and private television station in the country and covered by journalists from national and international media alike. <\/span>\u00a0<\/span><\/p>\n

\u201cThe Funan Techo Canal will link the capital Phnom Penh to the deep water port in Preah Sihanouk province… facilitating the country\u2019s trade exchange with the world,\u201d said <\/span>Hun Manet<\/span><\/a> in his speech at the groundbreaking event.<\/span><\/p>\n

The canal will span 180 kilometers, starting from the Mekong River\u2019s Preak Takeo tributary in Kandal province, passing through Takeo and Kampot provinces to the coast in Kep province. It will connect Phnom Penh to the Gulf of Thailand and is projected <\/span>to enhance Cambodia\u2019s<\/span><\/a> industrial, agricultural, logistics, and real estate sectors by directly connecting with international trade routes.\u00a0<\/span><\/p>\n

But after the grand inauguration, the construction of the canal was halted for several months, reportedly due to \u201c<\/span>funding issues<\/span><\/a>\u201d with China. The Cambodian government <\/span>denied<\/span><\/a> the allegation, slamming the media reports as \u201cmisinformation.\u201d<\/span><\/p>\n

In April 2025<\/span><\/a>, a deal was made between Cambodia and China Communications Construction Company <\/span>(CCCC<\/span><\/a>), the parent company of China Road and Bridge Corporation. Structured under a 51\u201349 ownership model of the Public Partnership Contract agreement, the budget was revised from an estimated USD 1.7 billion to USD 1.16 billion.\u00a0<\/span><\/p>\n

During his remarks, Wang Tongzhou, Chairman of CCCC, emphasized that the Kingdom is an important strategic market in Southeast Asia.\u00a0\u00a0<\/span><\/p>\n

\u201cMore importantly, it marks a significant milestone in deepening cooperation between the two nations,\u201d he said, as quoted by <\/span>Khmer Times.<\/span><\/a><\/p>\n

Expected to finish in 2028, this project is not without its controversies. Aimed at boosting Cambodia\u2019s economy, there have been some environmental and human rights concerns related to the project, especially for the Mekong Delta, a vital part of people\u2019s livelihoods in other neighboring Southeast Asian countries.\u00a0<\/span><\/p>\n

\"The

The Funan Techo Canal route. Image via Wikimedia Commons<\/a>. License\u00a0CC BY-SA 3.0<\/a>.<\/p><\/div>\n

What is the Funan Techo Canal?\u00a0<\/b><\/h3>\n

Initially announced in <\/span>2021<\/span><\/a>, the Funan Techo Canal is a major waterway infrastructure that would be 100 meters wide, 5,4 meters deep, and designed to accommodate vessels of up to 3,000 deadweight tons. Once completed, it will strengthen Cambodia\u2019s position as a regional logistics hub and reduce its dependence on Vietnamese ports for trade access.<\/span>\u00a0<\/span><\/p>\n

This project reflects the country\u2019s aspiration to become a <\/span>major logistics hub<\/span><\/a> in Southeast Asia. It is expected to reduce shipping costs by 70 percent and is projected to earn USD 88 million annually from transportation by 2050. The canal will be a shortcut to <\/span>international trade<\/span><\/a> that will stimulate more foreign investment and create jobs. <\/span>\u00a0<\/span><\/p>\n

The Cambodian government <\/span>claimed<\/span><\/a> that 1.6 million people living on both sides of the waterways will benefit from the project. Hailed as a <\/span>\u201crevolutionary engineering achievement<\/span><\/a>,\u201d this canal is expected to boost the agricultural sectors and enhance flood mitigation and water conservation efforts, especially in the dry season, according to Mey Kaylan, a senior adviser to the Supreme National Economic Council of Cambodia.<\/span><\/p>\n

\u201cIt will open up a new horizon for the development of Cambodia,\u201d said Mey to <\/span>China Daily<\/span><\/a>.\u00a0<\/span><\/p>\n

During the inauguration ceremony, Hun Manet stated that the canal will be built \u201cno matter what the cost\u201d as it brought \u201cnational prestige\u201d to the Cambodian people. Yen Samnang, a research fellow at the Phnom Penh-based Asian Vision Institute think tank, shared optimism that this canal will enhance regional connectivity and economic integration.\u00a0<\/span><\/p>\n

\u00a0\u201c<\/span>The project is truly in line with Cambodia\u2019s values of sustainability, innovation, and global cooperation,\u201d he told the <\/span>Khmer Times<\/span><\/a>.\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n

Environmental and human rights concerns<\/b><\/h3>\n

While the Cambodian government has insisted the canal is environmentally sustainable, environmentalists are concerned about the future of the Mekong waterway.\u00a0<\/span><\/p>\n

The Mekong River is a vital resource for millions who live on the banks of the river, from China to Myanmar, Thailand, Laos, Cambodia, and Vietnam. It is the world\u2019s largest inland fishery, sustaining at least 40 million people and generating over USD 11 billion annually, according to the <\/span>World Wildlife Fund<\/span><\/a>. Mekong is also the world\u2019s third most biodiverse river, with at least 1,148 fish species, and an important food zone for the world.\u00a0<\/span><\/p>\n

Vietnam<\/span><\/a> has raised concerns that the Funan Techo Canal would disrupt the ecosystem balance, especially in the Mekong Delta in southern Vietnam. The canal\u2019s high embankments will prevent silt-laden floodwater from flowing downstream to Vietnam, which could cause drought in Vietnam\u2019s agricultural \u201crice bowl<\/a>\u201d and Cambodia\u2019s floodplains, according to <\/span>Brian Eyler<\/span><\/a>, director of the Washington-based Stimson Center\u2019s Southeast Asia Program.\u00a0<\/span>\u00a0<\/span><\/p>\n

For Vietnam, this could undermine its agricultural sector, which accounts for 12 percent of its economy. In 2024, Vietnam exported over <\/span>9 million<\/span><\/a> tons of rice, generating a value of USD 5.7 billion. This number accounted for 15 percent of global exports, raising global food security concerns, <\/span>SCMP<\/span><\/a> reported.\u00a0<\/span><\/p>\n

\"Vietnam

Vietnam accounted for 15 percent of global rice exports. Image from Wikimedia Commons<\/a>. License CC BY-SA 3.0<\/a>\u00a0<\/span><\/p><\/div>\n

Furthermore, Le Phat Quoi, head of Vietnam\u2019s Institute for Environment and Natural Resources, told <\/span>Mongabay<\/span><\/a> that digging the canal will disrupt the region\u2019s Holocene soil, \u201ca potential acid sulfate soil\u201d which will oxidize into \u201cactual acid sulfate soil,\u201d producing sulfuric acid. This process could corrode canal infrastructure and release dangerous concentrations of heavy metals into the floodplain, threatening both agriculture and aquatic ecosystems.<\/span>\u00a0<\/span><\/p>\n

However, Cambodian President Hun Sen <\/span>debunked<\/span><\/a> these concerns via a post on X, arguing that \u201cthis canal has no impact on the flow of the Mekong River, as it does not connect directly to the Mekong but rather to the Bassac River.\u201d\u00a0<\/span><\/p>\n

Locals would also be threatened by the construction of the canal, as many who live along the banks may lose their homes. Dim Mech, a businessman living along the planned canal route since before 2000, told CamboJA News that he has yet to receive any official notice regarding compensation or relocation, even though local authorities have already documented his land, home, and crops.<\/span><\/p>\n

\u201cI\u2019m afraid to leave. I\u2019ve worked so hard to build this life. If I lose it, I won\u2019t survive,\u201d he said to <\/span>CamboJA News. <\/span><\/a>\u00a0<\/span>\u00a0<\/span><\/p>\n

Strengthening China-Cambodia relations<\/b><\/h3>\n

This canal has also raised questions about the future of Cambodia\u2019s geopolitics. The Chinese ambassador to Cambodia, Wang Wenbin, said this project marks <\/span>a \u201cnew stage\u201d<\/span><\/a> in China-Cambodia cooperation.\u00a0<\/span><\/p>\n

Analysts believe that the Funan Techo Canal could help China to <\/span>expand its economic and geopolitical influence<\/span><\/a> in Cambodia and in the wider region, but China\u2019s rising dominance would concern the US and Vietnam.\u00a0<\/span><\/p>\n

\u201cRegarding the controversy [with Cambodia] over the canal, environmental protection or other arguments are not substantial reasons,\u201d Zhou Chao, a researcher at Anbound Consulting\u2019s Beijing Research Center, <\/span>told<\/span><\/a> the South China Morning Post. \u201cFundamentally, it is the wariness and resistance of the US and Vietnam towards the continuous rise of China\u2019s influence.\u201d<\/span><\/p>\n

Politically, China has invested heavily in Cambodia to expand its <\/span>soft power and diplomatic influence<\/span><\/a>. For Cambodia, China is the largest source of its foreign investment, providing an important boost to its infrastructure development and economic growth. While the canal project might increase the risk of government debt, in the <\/span>short term,<\/span><\/a> it helps to address Cambodia\u2019s unemployment crisis, could boost its economic growth, and expand exports to China. By aligning with China economically, Cambodia also gains geopolitical protection in the region.\u00a0<\/span><\/p>\n

\"Nguyen

Nguyen Tan Dung, former Prime Minister of Vietnam, and Hun Sen, the President of the Cambodian State. Image from Wikimedia Commons<\/span><\/a>. License\u00a0CC BY-SA 3.0<\/a>.<\/p><\/div>\n

However, this project could have a negative impact on the Cambodia-Vietnam relationship as it will reduce around <\/span>10 percent<\/span><\/a> of international trade to and from Cambodia via Vietnamese ports. This could divert <\/span>substantial trade<\/span><\/a> from Vietnam to the Gulf of Thailand, strengthening China\u2019s economic leverage over Vietnam. China and Vietnam have a fraught history and ongoing territorial disputes.\u00a0\u00a0<\/span><\/p>\n

While critics believe the canal represents a risk of Cambodia\u2019s overreliance on China, Chinese media commentator Yuan Ye argued that, on the contrary, the Funan Techo Canal is an attempt for Cambodia to even the balance of power in the region.\u00a0<\/span><\/p>\n

Yuan said to <\/span>Guancha<\/span><\/a>, a Chinese nationalistic media outlet: <\/span><\/p>\n

\u4e0e\u8d8a\u5357\u4e0d\u540c\uff0c\u67ec\u57d4\u5be8\u5e76\u4e0d\u628a\u4e2d\u56fd\u89c6\u4e3a\u76f4\u63a5\u7684\u5b89\u5168\u5a01\u80c1\uff0c\u76f8\u53cd\uff0c\u501f\u52a9\u4e2d\u56fd\u529b\u91cf\u4ee5\u5236\u8861\u8d8a\u5357\uff0c\u662f\u67ec\u57d4\u5be8\u5386\u53f2\u4e0a\u7684\u60ef\u5e38\u7b56\u7565\u3002<\/span><\/p><\/blockquote>\n

Unlike Vietnam, Cambodia does not view China as a direct security threat. On the contrary, relying on China\u2019s power to balance Vietnam has been a common strategy in Cambodia's history.<\/span><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

While the Cambodian government has insisted the canal is environmentally sustainable, it may not be the case for the Mekong waterway.\u00a0<\/p>\n","protected":false},"author":3281,"featured_media":846241,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[47,2688,325,16,1357,250,304,283,287,221],"tags":[],"class_list":["post-846178","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cambodia","category-china","category-chinese","category-east-asia","category-economics-business","category-environment","category-feature","category-international-relations","category-politics","category-weblog","gv_special-global-voices-climate-justice-fellowship-2025"],"acf":[],"geo":null,"_links":{"self":[{"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/posts\/846178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/users\/3281"}],"replies":[{"embeddable":true,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/comments?post=846178"}],"version-history":[{"count":8,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/posts\/846178\/revisions"}],"predecessor-version":[{"id":846323,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/posts\/846178\/revisions\/846323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/media\/846241"}],"wp:attachment":[{"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/media?parent=846178"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/categories?post=846178"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalvoices.org\/wp-json\/wp\/v2\/tags?post=846178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}