Hun Manet Highlights Economic Gains of Funan Techo Canal Project
Hun Manet Highlights Economic Gains of Funan Techo Canal Project
TBONG KHMUM, May 27, 2026 — Prime Minister Hun Manet said the Funan Techo Canal project will significantly strengthen Cambodia’s transportation and logistics capacity by allowing goods to be shipped directly without relying on transit through other countries.
Speaking during the inauguration ceremony of the Kim’s Rubber (Cambodia) processing factory in Tbong Khmum province on Wednesday, Hun Manet said Cambodia currently handles only around 15% to 16% of direct global shipping traffic through its own ports, forcing many cargo vessels to stop in neighboring countries for transshipment.
He said ongoing development at Sihanoukville Autonomous Port, combined with the future completion of the Funan Techo Canal, would help Cambodia improve its direct maritime connectivity with international markets.
“Previously, many agricultural products had to rely on neighboring countries for transfer, creating additional costs and complications. Now, we can export directly to China, and once the Funan Techo Canal is completed, it will further benefit the entire economy and transportation sector,” Hun Manet said.
The prime minister added that the canal would provide broader economic benefits beyond logistics, including improved irrigation systems for millions of hectares of farmland, flood management, new industrial and special economic zones, and expanded investment opportunities along the canal route.
Hun Manet stressed that the project was a long-term strategic investment designed to strengthen Cambodia’s competitiveness in transportation, agriculture and agro-industry, insisting that the canal “will not operate at a loss.”
The Funan Techo Canal is a major inland waterway project linking Cambodia’s river systems to the sea. The nearly 180-kilometer canal will connect the Mekong River to Kep province through Kandal, Takeo, Kampot and Kep provinces.
The project is expected to cost approximately US$1.7 billion and is also intended to support irrigation, fisheries, tourism, flood prevention, industrial development and new economic corridors across southern Cambodia.
