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The construction of the De Chong Funan Canal in Cambodia undertaken by a Chinese company started as scheduled, "Cambodians can breathe on their own"

2024-08-05

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[Text/Guardian Network Lai Jiaqi] On August 5, the groundbreaking ceremony for the Dechong-Funan Canal project in Cambodia was held as scheduled. After Cambodian Prime Minister Hun Manet said at the groundbreaking ceremony, "We must build this canal at all costs," he pressed the project start button, fireworks shot into the air, and drums sounded.

Cambodia's Khmer Times described the groundbreaking ceremony as "a grand ceremony marked by patriotism and national unity". Once completed, the 180-kilometer-long Dechong-Funan Canal will become an important waterway for Cambodia, reducing the country's heavy reliance on neighboring Vietnam for international shipping and paving the way for its economic growth. As Hun Manet described it before: "Cambodians can finally breathe through their own noses."

This project will be undertaken by Chinese companies. During the third Belt and Road Forum for International Cooperation in October last year, the Cambodian government and China Road and Bridge Corporation signed an investment framework agreement for the canal project.

On August 5, Cambodian Prime Minister Hun Manet and his wife Bun Ranee (center) pressed the button to start the groundbreaking ceremony for the De Chong Funan Canal. Visual China

As Prime Minister Hun Manet previously said, the Trong-Funam Canal is a “historic” project that will ensure Cambodia “breathes through our own nose.”

The Tak Chong Funan Canal is a national strategic project of Cambodia. It starts from Prey Kho An Baer, ​​southeast of the capital, passes through the four provinces of Kandal, Takeo, Kampot and Kep, and flows out to the sea at Kep. It is about 180 kilometers long. The project is expected to take four years to complete and will cost about US$1.7 billion. Hong Manet said that the canal is a "build, operate and transfer" (BOT) development project, so the Cambodian government will not have to directly bear the project financing. According to the memorandum of the Grand Canal project released by the Cambodian government, the source of funds for the development of the Grand Canal project comes from Cambodian state-owned enterprises, local private businesses and China Road and Bridge Corporation (China Road and Bridge).

The dotted line is the De Chong Funan Canal (Nikkei Asian Review)

Yen Samnang, a researcher at the Asian Vision Institute, a Cambodian policy think tank, wrote in an analysis in the Khmer Times on August 5 that this 180-kilometer infrastructure project will be a major driving force for Cambodia to become an upper-middle-income country by 2030 and a high-income country by 2050. He estimates that the first year of operation of the De Chong Funan Canal will bring the Cambodian government $88 million in revenue, and by 2050, this figure will reach $570 million per year.

Yan Sannan said that after completion, the Dechong-Funan Canal will help Cambodia establish a direct sea route, which can reduce Cambodia's reliance on neighboring Vietnam for international shipping by up to 70%. This will not only improve logistics efficiency, but also facilitate Cambodia's trade and investment exchanges with foreign countries, opening up new avenues for its economic growth. In addition, the Dechong-Funan Canal can also regulate the flow of the Mekong River, reduce flood risks, provide more reliable irrigation for the agricultural sector, and provide more sufficient water resources for the aquaculture sector. For areas along the canal, the project may stimulate the development of tourism in these areas, create more jobs and income, and achieve economic diversification.

On August 5, the groundbreaking ceremony of the De Chong Funan Canal was held. IC Photo

However, this project, which was intended to bring benefits to the Cambodian people, has been questioned by Vietnam, which claims that it will lead to water shortages in the Mekong Delta and damage the local ecosystem.

In response to foreign doubts, Cambodian Deputy Prime Minister and First Vice Chairman of the Development Council Sun Chanthol published an article in the Nikkei Asian Review in May this year, saying that the De Chong Funan Canal project will prevent major changes in the water level of the Mekong River and maintain the natural flow of water in the region. In line with the principle of full transparency, Cambodia informed the Mekong River Commission of the details of the project in August 2023. At the same time, 48 international experts will conduct a detailed assessment of the possible environmental impact of this project to ensure that it respects the natural heritage of the Mekong River waterway and is fully in line with the Mekong River Basin Development Cooperation Agreement signed by Cambodia, Laos, Thailand and Vietnam in 1995.

Song Duk, president of the Royal Academy of Cambodia, said in an interview with Singapore's Lianhe Zaobao that what Vietnam is really worried about is losing control over Cambodia. He pointed out that if Cambodia has a canal, Vietnam will not be able to control Cambodia's imports and exports and cannot charge for transit transportation. In this way, it will be difficult for Vietnamese investors to be competitive.

Lianhe Zaobao said that Cambodians have long accused the government of being pro-Vietnam. After Hun Manet came to power, he wanted to establish an image different from his father, former Cambodian Prime Minister Hun Sen, so he insisted on promoting the Trong Funan Canal project to enhance his reputation and support at home. But on the other hand, Cambodia does not want to damage its friendly relations with Vietnam. Hun Manet visited Vietnam in December last year, mainly to dispel Vietnam's concerns about the Trong Funan Canal project.

The United States also claimed that the project "has potential impacts on regional water resource management, agricultural sustainability and security." There is even public opinion that China invested in the canal to expand its influence in Cambodia and its military presence in Southeast Asia. Hong Kong's South China Morning Post said that the United States has repeatedly expressed concern about China's military influence in the region. But the United States' own media, The Diplomat, does not believe that China has gained any military benefits from the Dechong-Funam Canal project. The report said that the Dechong-Funam Canal is too deep and wide to accommodate Chinese warships, and it is not connected to a strategic location on the high seas. Sea transportation is also less efficient than rail and land transportation. The canal has almost no military advantage, and "security concerns about it are wrong."

"Fundamentally, this is a warning and resistance by the United States and Vietnam to China's growing influence," Zhou Chao, a researcher at the Beijing Research Center of Anbang Think Tank, told the South China Morning Post. Environmental protection and other disputes are not substantive reasons. Vietnam is unwilling to lose its influence in the Cambodian economy, and the United States, in its fierce regional competition with China, does not want to see China expand its influence in Cambodia or even Southeast Asia.

In April this year, former Cambodian Prime Minister Hun Sen published a long article on his personal social media to set the record straight, emphasizing that the canal project has no military use. In the article, he criticized that some "non-friends" are fabricating facts and making defamatory remarks to distort the true purpose of the De Chong Phu Nan Canal.

Hun Sen also urged troublemakers not to defame Cambodia to meet the needs of anti-China geopolitical strategy. "We have brains and consider national interests just like you. You rich countries look down on us poor countries."

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