US, Vietnam fear China-backed Techo Funan Canal in Cambodia could be used for military purposes

The US urged greater transparency from Cambodia over the US$1.7 billion project that analysts say could be used to boost China’s military presence in Phnom Penh

Former leader Hun Sen rejected such concerns, saying the canal would only be used to spur agricultural activities

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Cambodian warships are docked at the Ream naval base in Sihanoukville. Photo: AP

Published: 4:10pm, 11 Apr 2024

The latest China-funded infrastructure project in Washington’s cross hairs is a proposed canal in Cambodia.

The US is urging greater transparency from Cambodia over a planned US$1.7 billion canal that observers say could be used to bolster China’s military presence in the Southeast Asian nation, posing a potential security threat to regional neighbours like Vietnam.

Spanning some 180km (111.85 miles) from Phnom Penh to the coastal province of Kep, construction on the Techo Funan Canal is slated to begin later this year after the state-owned China Bridge and Road Corporation landed a deal to develop it during a Belt and Road Initiative summit in October.

“The Cambodian people – along with people in neighbouring countries and the broader region – would benefit from transparency on any major undertaking with potential implications for regional water management, agricultural sustainability, and security,” Wesley Holzer, public diplomacy officer at the US embassy in Phnom Penh, wrote in response to questions from Bloomberg regarding the project.

Former Cambodian prime minister Hun Sen claims the canal would only be used to boost economic activity.

Touted as Cambodia’s first inland river dredging project, the Techo Funan Canal will take around four years to complete and will boast a total length just 16km (10 miles) shorter than that of the Suez Canal. Like many infrastructure projects, it could potentially be used for military purposes and is drawing similar concerns from neighbour Vietnam.