For a long time, Cambodia has lacked large-scale water transportation channels connecting the inland and the ocean, which has limited logistics transportation and put pressure on economic development. With the continuous implementation of key infrastructure projects in China Cambodia cooperation, the Dechong Funan Canal project has received critical funding support, providing solid guarantees for the acceleration and effectiveness of engineering construction, as well as injecting new impetus into Cambodia's economic upgrading and regional connectivity development.

Accelerate the implementation of billion dollar financing projects

On September 9, 2026, Funan Techo Coastal Inland Waterways Co., Ltd. successfully completed a financing contract with the Export Import Bank of China, with a total amount of nearly 1 billion US dollars, all of which will be dedicated to supporting the construction of the Nandezo comprehensive water conservancy project. Cambodian Deputy Prime Minister and First Vice Chairman of CDC, Sun Zhantuo, personally witnessed the entire signing process at the International Investment Cooperation Forum held in Xiamen, Fujian. On September 11, 2026, the Cambodian Development Council officially announced the progress of the project cooperation, sending a positive signal to the outside world that the project is steadily advancing.

The project adopts a mature construction and operation transfer mode for construction and operation, with professional private investment enterprises leading the investment, construction, and later operation transfer work. The market-oriented operation mode can effectively ensure the quality of project construction and operational efficiency. According to public information, the canal project officially started construction more than two years ago, and the groundbreaking ceremony for the second phase of the project was successfully held in April this year. The overall construction pace of the project is stable, orderly, and steadily advancing.

Hard core infrastructure reshapes Cambodia's logistics landscape

The Dechong Funan Canal is a national level water conservancy and shipping project currently under key planning in Cambodia. The overall planning scale of the project is grand and the development significance is profound. The project is expected to have a total investment of 1.7 billion US dollars and is planned to be officially completed and put into use in 2028. The canal route is scientifically planned, with a total length of 180 kilometers, starting from the Cha Jiao Canal connecting the Mekong River system and ending directly in the waters of Bai Ma Province. The river width is stable at 80 to 100 meters, and the overall water depth exceeds 5 meters. The navigation conditions are excellent, which can effectively achieve seamless connection between inland water systems and nearshore waters.

For a long time in the past, Cambodia's inland goods were highly dependent on land transportation and overseas transit channels for going out to sea. The transportation routes were circuitous and time-consuming, and the overall logistics costs were high, greatly restricting foreign trade and industrial development. After the completion and navigation of the canal, it will completely rewrite the local logistics transportation pattern, build an efficient and convenient water transportation artery, significantly shorten the distance of goods transportation to the sea, significantly reduce the logistics costs of enterprises, and comprehensively enhance the competitiveness of Cambodia's logistics industry and the ability of supply chain autonomy and controllability.

Global empowerment activates regional economic potential

As a core strategic infrastructure project in Cambodia, the Dechong Funan Canal will create a new economic corridor that connects the north and south, sea and land, thoroughly optimizing Cambodia's original economic layout and becoming an important pillar driving high-quality development of the national economy. According to the prediction of the Cambodian Development Council, in the next few decades, the radiation areas along the canal will usher in dual opportunities of industrial agglomeration and urban development. Industrial parks, modern logistics centers, and deep processing industries of agricultural products will accelerate their landing and agglomeration. The development and construction of satellite new cities along the canal and the coastal tourism industry will also achieve steady growth. Keywords: Dechong Funan Canal, China Cambodia infrastructure cooperation, billions of shipping empowerment

In addition, the project has outstanding social benefits and ecological value. Water transportation has the advantage of low-carbon and energy-saving, which can effectively reduce regional transportation carbon emissions and promote green development. At the same time, the construction and long-term operation of the project will continue to create a large number of job opportunities, drive income growth and economic quality improvement in multiple industries along the route, further deepen practical cooperation in the field of infrastructure between China and Cambodia, and continue to promote cross-border economic and trade linkage and regional coordinated development in the Indochina Peninsula.Editor/Huang jiali