China has decided to invest $1.2 billion (approximately 1.7 trillion won) in a canal construction project that connects the capital of Cambodia, Phnom Penh, to the port along the coast of Thailand. The United States and Vietnam are reportedly concerned that this canal could become a route for Chinese warships.
According to Yonhap News Agency and the Associated Press on the 19th, the Cambodian government announced that a funding contract for the 'Phu Nan Te Ko Canal' was signed during Chinese President Xi Jinping's visit to Cambodia the previous day.
The Cambodian government noted, “We will create new inland and maritime routes capable of accommodating vessels with a maximum deadweight tonnage (DWT) of 3,000, excluding the weight of the ship itself,” adding that the contract includes not only canal excavation but also the construction of locks for vessel passage and navigation and logistics infrastructure.
The Phu Nan Te Ko Canal is a significant project in Cambodia, linking the capital Phnom Penh to the South China Sea via a 180 km waterway using tributaries of the Mekong River. The scale of the construction alone accounts for about 4% of Cambodia's gross domestic product (GDP). Although construction started in August of last year, it has reportedly been halted due to funding issues.
Vietnam and the United States are concerned that the Cambodian Grand Canal could become a route for Chinese warships. However, Cambodian Prime Minister Hun Manet stated, “Regardless of the cost, this canal will surely be constructed, and it is for the national status, territorial preservation, and development of Cambodia,” expressing his commitment to the canal's construction.