Mekong canal dispute fuels tensions between Vietnam and Cambodia
In August 2023, Cambodia announced plans for the 180-kilometre Funan Techo Canal on the Mekong River, a major infrastructure project valued at $1.7 billion and funded by China as part of its Belt and Road Initiative. This canal is intended to link Phnom Penh with the deep-seaport in Kep, providing a direct route to the South China Sea.
The Cambodian government projects significant economic benefits, including improved transportation and the potential creation of 5 million jobs, while also reducing reliance on Vietnam’s Cai Mep seaport.
However, the project has sparked considerable concern in neighboring Vietnam. The canal’s design raises fears of water security issues, as it may alter the Mekong’s natural flow and prevent essential water from reaching the Mekong Delta. This could exacerbate ongoing droughts and salination problems that threaten Vietnamese agriculture and impact habitats for endangered species.
Aside from environmental worries, geopolitical implications loom large. The canal is viewed as a potential tool for increasing China’s military presence in Cambodia, given its proximity to the recently refurbished Ream naval base in Sihanoukville. Vietnamese and U.S. officials have called for greater transparency regarding the canal, fearing it could serve dual purposes: enhancing Cambodian connectivity and facilitating military operations for China.
Cambodian Prime Minister Hun Manet has sought to assuage fears regarding the canal’s impact on Vietnam, asserting that its effects would be minimal and emphasizing a commitment to non-alignment with foreign military bases. Despite these reassurances, the canal represents a growing economic dependency on China, which raises concerns about the unity and consensus within the Association of Southeast Asian Nations (ASEAN). Cambodia’s past actions, like blocking ASEAN statements on the South China Sea, have already indicated its shifting allegiances.
The historical context is also important; Vietnam’s relationship with Cambodia has been complex, characterized by Vietnam’s military intervention in 1978 and continued influence over Cambodian politics for years. Anti-Vietnamese sentiment remains a sensitive topic in Cambodia, stemming from historical territorial disputes and ongoing issues with illegal migrants.
In summary, the Funan Techo Canal symbolizes the intricate web of economic, environmental, and geopolitical tensions in Southeast Asia, particularly in the Mekong region. As Cambodia aligns more closely with China, concerns from Vietnam about water security and potential military implications stress the need for diplomatic dialogue and transparency in regional initiatives.
Maritimefairtrade.org – January 12, 2026