Cambodia’s mega canal has Vietnam worried: What does it mean for the Mekong?

“Sell distant relatives, buy close neighbors”. So, Vietnam, be a good friend of Cambodia.

PTH

CNAInsider – 31-10-2025

This April, China and Cambodia finalised a deal to build the Funan Techno Canal. It is a 180km waterway which will connect the Mekong River to the Gulf of Thailand. The USD 1.8 billion infrastructure project will be undertaken jointly by the Cambodian government and Chinese investors. The project has an ambitious completion date of 2028.

Cambodia argues that the canal will finally allow the country to control its own destiny. Currently, about a third of Cambodia’s global cargo are relying on Vietnamese ports for export, via the Mekong. The canal will allow the shipments to be exported through Cambodia’s own ports, reducing its reliance on its neighbour. The Kingdom sees the canal as a source of economic independence and growth, as well as a way to boost its transport links.

But Vietnam is concerned that the canal will divert water flows from the Mekong. Indochina’s most important river is already under threat by upstream dams and climate change. A massive new canal could well starve Vietnamese farmlands of much needed water. Cambodia on the other hand, insists that the canal will have minimal impact. As construction of the canal gets underway, what will be the long-term impact of this monumental project?

00:00 Introduction
01:32 Cambodian exports rely on Vietnam ports
06:10 US$1.7b Funan Techo Canal megaproject
09:44 Cambodia’s tensions with neighbour Thailand
11:53 Importance of Mekong Delta to Vietnam
14:39 Vietnam concerned about water diversion
19:17 Cambodia’s response to impact of canal
23:20 Cambodia and China’s partnership
29:32 Could the canal be used by Chinese military?
34:30 Residents displaced by Funan Techo Canal
38:33 Cambodians supportive despite challenges, costs
40:44 Canal will promote “national prestige”
42:05 How will Vietnam respond?

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