Cambodia’s new canal project aims to boost trade, raises concerns for Mekong River and Vietnam’s agriculture

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PREK TAKEO, Cambodia. Cambodia’s ambitious plan to construct a massive canal linking the Mekong River to its coast on the Gulf of Thailand is sparking alarm over its potential environmental impact, particularly on the millions who depend on the Mekong for their livelihood. The $1.7 billion Funan Techo canal, backed by Chinese funding, is expected to bolster Cambodia’s trade, but experts warn it could disrupt the river’s flood systems, exacerbating droughts and threatening Vietnam’s rice-growing Mekong Delta.

Prime Minister Hun Manet inaugurated the project on August 5, asserting that the canal will be built “no matter what the cost.” The canal is envisioned to connect Cambodia’s capital, Phnom Penh, with Kep province, reducing reliance on Vietnam for exports and promoting “national prestige, territorial integrity, and the development of Cambodia,” Hun Manet said.

Environmental Concerns

The Mekong River is crucial to the region, flowing through six countries and supporting a $11 billion inland fishery. It also provides the nutrient-rich silt that makes Vietnam the world’s third-largest rice exporter. Environmental experts fear the canal’s embankments will block floodwaters from reaching downstream areas, threatening not only Vietnam’s agricultural output but also Cambodia’s floodplains, covering roughly 1,300 square kilometers.

Brian Eyler, director of the Southeast Asia Program at the Stimson Center, highlighted the dangers. “The high embankments of the 100-meter-wide, 5.4-meter-deep canal will prevent silt-laden floodwater from flowing downstream to Vietnam, worsening drought conditions and hurting the Mekong Delta’s agriculture,” he said.

Impact on Vietnam’s Agriculture

The Mekong Delta plays a significant role in Vietnam’s agricultural economy, which contributes 12% to the country’s GDP. The delta is essential for Vietnam’s goal to cultivate “high quality, low emission rice” on 1 million hectares of farmland by 2030. The Mekong’s waters are vital to both the people and the rice industry.

Nguyen Van Nhut, director of rice export company Hoang Minh Nhat, emphasized the importance of the river’s flow. “Water from the river is essential not just for Vietnam’s more than 100 million people but also for global food security,” he stated. Vietnam exported 8.3 million metric tons of rice in 2023, accounting for 15% of global exports, most of which came from the Mekong Delta. “The amount of silt being deposited by the river has already dropped, and further disruptions will worsen salinity in the area, hurting farming,” Nhut added.

Cambodia’s Perspective

Cambodian officials claim that the canal, which will connect to the Bassac River near Phnom Penh, will not affect the Mekong’s flow. Former Prime Minister Hun Sen, in a statement on social media platform X, said, “There would be no impact on the flow of the Mekong River.” However, environmentalists like Eyler argue that this justification is flawed, as the Bassac itself is fed by the Mekong.

Cambodia has downplayed the canal’s environmental risks, even though a document submitted to the Mekong River Commission in August 2023 didn’t mention using canal water for irrigation. Since then, however, Cambodian authorities have indicated plans to use the canal for this purpose during dry months, likely requiring negotiations with other Mekong countries.

The Mekong River Commission stressed that all major projects on the river “should be assessed for their potential transboundary impacts.” The commission is currently providing technical support to enhance transparency and cooperation among affected nations.

Diplomatic Tensions

While Cambodia is pushing forward with the project, Vietnam has expressed quiet concern. Vietnamese Foreign Ministry spokesperson Pham Thu Hang stated in May that Hanoi had requested Cambodia to share information and assess the environmental impact to “ensure the harmony of interests” of all Mekong nations.

The canal has become entangled in nationalistic rhetoric, with Cambodia’s ruling elite viewing it as a step toward reducing dependence on Vietnam. Hun Sen has previously stated that the canal will give Cambodia a “nose to breathe through” by lessening the country’s reliance on its neighbor.

Despite the concerns, Vietnam has tread cautiously, not wanting to appear as if it is interfering in Cambodia’s sovereignty. “Although in Vietnam, there are big concerns,” noted Nguyen Khac Giang, an analyst at Singapore’s ISEAS-Yusof Ishak Institute, “Vietnam is avoiding openly criticizing Cambodia to prevent further diplomatic tensions.”

Impact on Local Communities

For Cambodian residents like Sok Koeun, 57, the canal project brings uncertainty. Sok’s home, where she has lived since 1980, is situated along the canal’s proposed route. She relies on the river for fish to feed her family and makes ends meet by selling sugarcane juice and recycling plastic cans. With no clear communication from authorities, Sok is left wondering about her future. “I only learned about it [the canal] just now,” she said.

As the project moves forward, both Cambodia and its neighbors must navigate the complex balance between economic development and environmental sustainability, with millions of lives potentially hanging in the balance.

Winding almost 3,000 miles from the Tibetan plateau down to the South China Sea, the Mekong River boasts the world’s largest inland fishery. It accounts for up to 25 percent of the global freshwater catch and provides livelihoods for tens of millions of people.
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Paraluman P. Funtanilla
Contributing Editor

Paraluman P. Funtanilla is Tutubi News Magazine's Marketing Specialist and is a Contributing Editor.  She finished her degree in Communication Arts in De La Salle Lipa. She has worked as a Digital Marketer for start-up businesses and small business spaces for the past two years. She has earned certificates from Coursera on Brand Management: Aligning Business Brand and Behavior and Viral Marketing and How to Craft Contagious Content. She also worked with Asia Express Romania TV Show.