By the end of this year (2024), China plans to launch a Mekong River canal project in Cambodia, which it plans to invest in.
However, since the project was in its initial stages, it has faced strong protests from Vietnam, and there have even been threats of the use of force.
Why is this happening?
What benefits will China bring to Cambodia by helping build the canal?
The Cambodia-Vietnam Mekong Delta Dispute
In May 2023, the Cambodian Cabinet approved the construction of the 180-kilometer-long Dechong Funnan Canal.
As soon as this plan was announced, it aroused strong opposition from Vietnam.
They claimed that this canal would seriously harm Vietnam's interests, even resorting to threats of force.
Despite the enormous risks involved, Cambodia did not back down and remained determined to complete the canal.
As one of the weakest countries in mainland Southeast Asia, they appeared powerless in their struggle against Vietnam.
Why is Cambodia so firm on this issue?
This involves the historical grievances between Cambodia and Vietnam over the Mekong Delta.
Today, the Mekong Delta spans southern Vietnam and southeastern Cambodia, being the largest (44,000 square kilometers) and most fertile plain in Southeast Asia.
However, in ancient times, this land actually belonged to Cambodia.
The indigenous people of the Mekong Delta were originally Khmer from Cambodia.
Vietnam, historically influenced by China and once a vassal state, began to break away from China's influence and gradually expanded southward from the Red River Delta, annexing the territory of neighboring Champa and eventually taking control of the Mekong Delta.
Originally part of Cambodia, Vietnam gradually infiltrated the region, gradually seizing control through royal marriages and the migration of Vietnamese refugees.
During Cambodia's internal turmoil, Vietnam seized the opportunity and annexed the Mekong Delta.
However, Vietnam's rule was not stable and was soon replaced by French colonizers.
By the late 19th century, Vietnam, Laos, and Cambodia became French colonies known as "Indochina."
Despite this, both Vietnam and Cambodia have not abandoned their claims to this land.
During World War II, they actively sought Japanese and French assistance to regain lost territory.
Ultimately, the Mekong Delta remained under Vietnamese control.
Cambodia has always been dissatisfied with this and has protested Vietnam's illegal occupation of its territory many times, but has received little international support.
Today, nearly 80% of the land in the Mekong Delta belongs to Vietnam, despite Cambodia's continued demand for the return of lost territory yielding little results.
So, what is the relationship between Cambodia's construction of the Dechong Funnan Canal and the Mekong Delta?
Cambodia's Development Challenges
Cambodia's position in mainland Southeast Asia is not significant.
As of 2023, Cambodia's GDP is only $30.943 billion, with a per capita GDP of less than $2,000, making it one of the poorest countries in Southeast Asia, heavily reliant on foreign aid.
Despite Cambodia's rich mineral and natural resources, its economic development is severely constrained by its transportation system.
Domestic infrastructure is aging and inadequate, with urban residents mainly relying on motorcycles, tuk-tuks, and bicycles for transportation.
The railway connection between Cambodia and Thailand is somewhat functional but primarily used for freight transport.
Relatively, water transport is an advantage for Cambodia, especially the Mekong River as the main inland waterway that runs through the country, but the southern delta region is under Vietnam's control, forcing Cambodian goods to pass through Vietnamese ports at high costs.
Thus, Cambodia has long faced problems of inefficient and costly water transportation.
For example, handling a 40-foot container at a Cambodian port costs $1,200 in logistics fees, while Thailand and Vietnam require only half the cost.
Customs clearance costs for container exports are also higher than in Thailand and Vietnam.
In addition, Cambodia must also worry that in case of accidents, Vietnam may restrict its shipping channels in the Mekong Delta, posing a serious threat to Cambodia's economic activities.
Cambodia once owned the Mekong Delta but is now a bottleneck for its development.
Vietnam has rapidly developed its economy relying on the Mekong Delta, becoming a shipping hub in Southeast Asia, which has greatly dissatisfied Cambodia.
Despite Cambodia's initial assurances that the canal construction would not affect the environment and water flow of the Mekong River, Vietnam still insists on its tough stance, even threatening Cambodia to abandon the project.
From Vietnam's perspective, they have lost the income from relying on Cambodian ports for shipping and are concerned that the Dechong Funnan Canal may reduce the water flow of the Mekong River, affecting Vietnam's agricultural irrigation and domestic water supply.
However, as a small country, Cambodia finds it difficult to resist Vietnam's pressure alone.
Fortunately, they found support from China.
In October 2023, Cambodia reached a cooperation agreement with Chinese companies on the Dechong Funnan Canal project.
With China's support, Vietnam dared not interfere too much.
However, Western countries have questioned and expressed concerns about this cooperation.
Some believe that once the Dechong Funnan Canal is completed, it may become a "white elephant" project and impose a financial burden on Cambodia.
Cambodian Prime Minister Hun Sen strongly refuted these criticisms, seeing them as pressure and control from Western countries over Cambodia's economic independence.
Regardless of external concerns, Cambodia will still launch the construction of the Dechong Funnan Canal in 2024 to achieve its long-term development strategy.
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