Cambodia marked the beginning of construction on a controversial canal project on Monday, funded by China, to connect the capital Phnom Penh to the sea. The Funan Techo canal, costing $1.7 billion and spanning 180 kilometers (111 miles), is designed to link Phnom Penh to Kep province on the south coast of Cambodia, granting access to the Gulf of Thailand. The canal aims to reduce shipping costs to Cambodia’s deep-sea port in Sihanoukville and decrease reliance on Vietnamese ports, highlighting China’s significant role in Cambodian politics and economy.
However, concerns persist regarding the potential environmental impact of the canal, especially on the Mekong River’s flow, which supports millions of people across six countries through its fish and agriculture production. Vietnam is apprehensive about the project affecting its rice-growing in the Mekong Delta and potentially shifting Cambodia away from its reliance on Vietnamese ports. Despite these concerns, Vietnam has been cautious in expressing its worries, given the complex history between the two nations.
Analysts view the canal project as a move by Cambodia’s ruling elite to garner support for Hun Manet, who recently took over leadership from his father, Hun Sen. The government declared a holiday on Monday, coinciding with Hun Sen’s birthday, to allow Cambodians to participate in the celebratory event at the canal site. The project is seen as enhancing national prestige and territorial integrity, with Manet stressing its historical significance and nationwide support.
While the canal will be a joint venture between Chinese and Cambodian companies, with Cambodian companies holding a 51% majority share for control, concerns remain about the potential impacts on water availability and agricultural production in Vietnam’s Mekong Delta. Despite warnings from organizations like the U.S.-based Stimson Center, Cambodia has dismissed these concerns. Vietnam has requested collaboration and information sharing regarding the canal project to assess its impact on the Mekong Delta region.
Cambodia’s partnership with China is crucial in diplomatic matters, particularly within the Association of Southeast Asian Nations where tensions over territorial disputes exist. China’s substantial presence in Cambodia is evident through various Chinese-funded projects across the country, financed by Chinese state banks. Additionally, a naval port expansion project with China raised concerns about a potential strategic military outpost for Beijing, though Cambodian officials have denied granting China rights to establish a military base in the country.
