Cambodia to Reduce Reliance on Vietnam Ports with Thai Canal

Aerial view of the river running through Phnom Penh
Ports & Logistics Asia
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Updated Published

Cambodia is advancing with the construction of the Funan Techo Canal, a project supported by China, designed to reduce its dependency on Vietnamese ports. Spanning 180 kilometers, this canal will link the Phnom Penh Autonomous Port with Kep and the Gulf of Thailand.

The canal, with an investment of $1.7 billion, will start at the Takeo Canal on the Mekong River, traverse the Ta Ek Canal on the Bassac River, and continue through the Ta Hing Canal, also on the Bassac River, culminating in Koh Thom district. It aims to provide a direct route from Phnom Penh to the deep-sea port in Sihanoukville and a new port in Kampot.

Plans for the canal include the construction of three dams with sluices and 11 bridges, making the canal 100 meters wide and 5.4 meters deep, suitable for vessels up to 3,000 dwt. Supported by both government and opposition parties, construction is poised to begin soon, with completion targeted for 2028.

However, the project has faced criticism from conservationists and Vietnamese officials who are worried about potential environmental impacts on the Mekong Delta.

In related developments, major infrastructure projects are reshaping maritime trade routes in Southeast Asia. For example, Thailand is revisiting its plans for a transportation corridor that could bypass the congested Malacca Strait. 

While the proposed Kra Canal project remains on hold, Thailand's Prime Minister is promoting a landbridge initiative across the narrow Kra Isthmus. This $28 billion project would feature highways and railways connecting deep-sea container ports in Ranong on the Andaman Sea and Chumphon on the Gulf of Thailand.