In August 2024, a groundbreaking ceremony was held in Cambodia to kick off the construction of the $1.7 billion Funan Techo Canal. This ambitious project aims to link the Mekong River to the Gulf of Thailand and reduce Cambodia’s shipping dependence on Vietnam. Chinese Prime Minister Hun Manet announced that China would contribute 49% of the funding for the canal, which is crucial for Cambodia’s economic development.
However, several months after the ceremony, doubts have emerged about China’s financial commitment to the project. Despite claims from Cambodian officials about China’s involvement, Beijing has not made any definitive commitments regarding funding. This uncertainty has raised concerns about the feasibility of the canal project, as well as its environmental impact and financial viability.
The canal, which spans 180 kilometers, is intended to divert water from the Mekong Delta to the Gulf of Thailand, thereby reducing the need for Cambodian ships to pass through Vietnamese ports. While the Cambodian government initially announced that China Road and Bridge Corporation (CRBC) would cover the entire cost of the project, subsequent statements indicated that CRBC’s share would be 49%, with the rest covered by Cambodian companies.
Despite the lack of clarity surrounding China’s financial contribution, the canal project remains a key priority for Cambodia’s economic development. However, the downsizing of Chinese investments in Cambodia, along with concerns about infrastructure projects and criminal activities targeting Chinese nationals, have raised doubts about the project’s long-term sustainability.
As Chinese investment in Cambodia declines, questions remain about the future of the Funan Techo Canal and its potential impact on the country’s economy. With investors hesitant to commit funds to the project, the Cambodian government faces challenges in realizing its ambitious vision for the canal. As the situation continues to evolve, the fate of the canal project hangs in the balance, awaiting clarity on China’s financial commitment and the project’s overall feasibility.
