Cambodian Prime Minister Hun Manet announced on Thursday (May 30) that Cambodia will launch a $1.7 billion canal project in August. The canal project, backed by China, has raised concerns from neighboring Vietnam, fearing that Chinese warships may use the canal and reduce Cambodia’s reliance on Vietnamese ports.
The canal, named the Funan Techo Canal, will stretch 180 kilometers (110 miles) inland from the sea port in Kampong Speu province to the Phnom Penh Autonomous Port in Kandal province, crossing four provinces – Kampong Speu, Kampong Chhnang, Pursat, and Kandal – with a population of 1.6 million.
According to Ha Hoang Hop, a senior research fellow at the ISEAS-Yusof Ishak Institute in Singapore, in the worst-case scenario, the canal could serve not only civilian purposes but also military defense purposes for Cambodia. If there are military actions within Cambodia, Vietnam may respond with warnings and deterrence.
The canal project is part of China’s Belt and Road Initiative, a large-scale infrastructure plan spanning across Asia. However, Hun Manet insists that it will only serve Cambodia’s interests. He stated, “We are doing this for the Cambodian people and the benefit of Cambodia.”
Exiled opposition leader Sam Rainsy has expressed concerns that the canal project will serve China’s interests. The project was named the Funan Techo Canal by former Cambodian Prime Minister Hun Sen, after the historical figure Techo warrior and the ancient Funan kingdom that existed in the region.
Under Hun Sen’s leadership, Cambodia has become one of China’s closest regional allies, receiving billions of dollars in infrastructure investments from Beijing. Hun Manet, Hun Sen’s son, stated that the funding for the Funan Techo Canal primarily comes from Cambodia, and the government is in discussions with Chinese companies for further investment.
During his speech on Thursday, Hun Manet emphasized the urgency of the project, saying, “We need to act now, we can’t wait any longer.”
Environmentalists have also expressed concerns about the canal, fearing that the 100-meter wide, 5.4-meter deep, 180-kilometer long waterway could reduce the flow of the Mekong River. The Mekong River, Southeast Asia’s longest river, is one of the world’s most biodiverse river systems.
Brian Eyler, the director of the Southeast Asia Program and the Energy, Water, and Sustainability Program at The Stimson Center in Washington, warned that constructing the canal could lead to significant flooding issues in Cambodia. He added that the Mekong Delta is one of the world’s largest rice-producing regions, with provinces like An Giang and Kien Giang in southern Cambodia being major rice-producing areas that could be severely impacted.
In fact, China’s dam construction on the upstream Lancang River in the Mekong basin has already caused severe ecological damage downstream and threatened livelihoods in the region. According to a report by Dajiyuan last year, China’s dam projects on the Lancang River upstream of the Mekong have exacerbated serious droughts downstream, further affecting the economies of Southeast Asian countries.
Recently, Cambodia and China concluded their annual military exercise involving multiple Chinese warships and hundreds of military personnel. The “Golden Dragon-2024” military exercise was conducted in waters near the disputed South China Sea region on May 16 as the largest joint land and sea exercise between the two since its inception in 2016.
Last December, two Chinese warships made their first visit to Cambodia’s Ream Naval Base and have remained docked there. The U.S. has expressed concerns that the base could be used to enhance China’s influence in the Gulf of Thailand. The Cambodian Ministry of Defense stated that the base is intended to “help train Cambodian naval personnel and prepare for the Golden Dragon exercise.”
According to a statement released by the U.S. Department of Defense on Wednesday (May 29), Defense Secretary Lloyd Austin will be visiting the Indo-Pacific region, marking his tenth trip since taking office. This visit comes as the U.S. Department of Defense continues to strengthen relationships with allies and partners to promote regional peace, stability, and deterrence. Austin is scheduled to visit Cambodia on Tuesday (June 4) to meet with senior officials.