Cambodia did not borrow money from China to build the canal, but the construction will be conducted in cooperation with the private sector in the form of BOT, the Premier said while presiding over the inauguration ceremony of Cheung Aek Sewage Treatment Plant in Phnom Penh’s Khan Meanchey.

The Funan Techo Canal project has been carefully studied by experts for the benefit of the nation, said Samdech Thipadei, reaffirming the Royal Government’s commitment to building the canal to expand waterway transport, which is more profitable for the economy.

The Prime Minister made the comments in response to an article dated Dec. 26 of The Cambodia Daily which misrepresented the Funan Techo Canal project, stressing that his reaction was taken to protect the legitimacy of the Royal Government and its officials.

Samdech Thipadei Hun Manet took the opportunity to encourage journalists to respect the professional ethics of publishing true information from all angles and dare to correct it if the published information is false.

Yesterday, the Ministry of Economy and Finance also clarified that the canal project will be developed under the Public-Private Partnerships (PPP) mechanism, not under the framework of any loans from development partners.

The Funan Techo Canal is the first historic project in Cambodia’s waterway transport sector to connect the Mekong River system and the sea route.

According to the project’s feasibility study which has been already completed, the construction of this waterway of 180 kilometers long and 100 meters wide upstream and 80 meters downstream with two navigation lanes would take around four years to complete and cost some US$1.7 billion

It will link Prek Takeo of the Mekong River to the sea in Kep province crossing four provinces: Kandal, Takeo, Kampot, and Kep with a total of 1.6 million people living on either side of the waterway.

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Cambodian Footwear Association president Ly Khun Thai said the Southeast Asian country has seen a significant rise in the exports of shoes to China and South Korea since the RCEP and Cambodia’s bilateral FTAs with China and South Korea entered into force last year.

“There are many countries under the RCEP agreement. With preferential tariffs, we expect to receive more purchase orders for our GFT products from those RCEP member countries,” he told a local TV channel on Friday.

The current major markets for Cambodia’s GFT goods are Europe, the United States, and Canada.

His comments came after the kingdom recorded a drop of almost a fifth in the export of GFT products during the first half of 2023.

The country exported GFT goods worth 5.26 billion U.S. dollars from January to June this year, down 18.7 percent from 6.47 billion dollars in the same period last year, according to the General Department of Customs and Excise’s report.

The GFT goods industry is the largest foreign exchange earner for Cambodia. The sector consists of roughly 1,100 factories and branches, employing about 750,000 workers, mostly female.

Cambodian Ministry of Commerce’s undersecretary of state and spokesman Penn Sovicheat said the RCEP and Cambodia’s bilateral FTAs with China and South Korea are key contributors to boosting the country’s exports.

“These free trade deals have given and will continue to give a boost to our export growth in the long term,” he told Xinhua on Sunday.

Sovicheat reiterated that these trade pacts will help Cambodia graduate from its least-developed country status by 2027, and achieve its ambitious goals of becoming an upper-middle-income country in 2030 and a high-income nation by 2050.

The RCEP comprises 15 Asia-Pacific countries, including the 10 ASEAN (the Association of Southeast Asian Nations) member states of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam, and their five trading partners, namely China, Japan, South Korea, Australia and New Zealand.

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Oknha Lim Heng, Vice President of the Cambodia Chamber of Commerce (CCC), emphasized that while the real estate sector poses challenges, it is just one facet of the economy and should not be considered a representation of the entire economic situation. Accusing the national economy of being in crisis, either before or after the election, is unwarranted.

Oknha explained the setbacks in the real estate sector will not adversely impact other growing sectors of the economy, such as the emerging services sector recovering from COVID-19, industrial, exports, and agriculture.

Cautionary comments have caused some wealthy individuals to be hesitant in purchasing land or houses, choosing to wait until after the election. Consequently, this further complicates the situation in the real estate market. Difficulties in the real estate sector can lead to payment issues with banks and have an indirect effect on other industries, Oknha added.

Hence, as representatives of the CCC, we confidently assert that the national economy has not deteriorated to a concerning state. In fact, it remains promising for the upcoming years of 2023 and 2024, particularly after the election. This optimism is further supported by our active engagement in various free economic agreements, both regionally and internationally, including initiatives like GBA and GSP.

According to recent statements by Prime Minister Hun Sen, the Cambodian economy is expected to experience a growth rate of 6.6 percent in 2024. Despite the garment and footwear industries growing slightly slower than anticipated, it is highly likely that the country will still achieve a growth rate of 5.6 percent this year. This can be attributed to the compensatory growth seen in the non-garment manufacturing sector.

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A meeting was held, chaired by HE Sok Chenda Sophea, Minister Delegate to the Prime Minister and Secretary General of the Council for the Development of Cambodia (CDC), to discuss investment projects along islands, beaches, and resorts.

Mr. Long Dimanche, Deputy Governor of Preah Sihanouk Province and Deputy Chairman of Preah Sihanouk Provincial Investment Sub-Committee attended the meeting to review the progress of the investment projects that need CDC approval.

Sihanoukville currently has 32 islands and reefs, as well as 33 coastal investment projects, including nine on the island. The meeting aimed to determine principles for the further development and management of the projects. During the meeting, the Deputy Governor provided informative comments and crisis solutions rooted in win-win politics, which received acclaim from the leadership and the public.

Moreover, the Deputy Governor requested the meeting to consider the repeal of some investment projects that work outside the master plan and negatively impact the environment. The meeting resulted in a review of inspection results for investment projects along islands, beaches, and resorts.

The southern region of Cambodia encompasses 443 square kilometers of coastline, spanning four provinces: Sihanoukville, Kampot, Kep, and Koh Kong. These provinces are located alongside the mesmerizing blue sea, offering stunning views of forested islands.

Beneath the crystal waters lie ample opportunities for diving and snorkeling, where one can observe the vibrant marine flora and fauna of Cambodia. Additionally, one cannot miss the delectable fresh seafood and instant fishing Kep crabs, followed by the famous green Kampot peppers. These dishes are best enjoyed with local spicy sauces that add an extra layer of flavor to your gastronomical experience.

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The comments were made by Samdech Akka Moha Ponhea Chakrei Heng Samrin, President of the Cambodian NA while receiving the newly appointed South Korean Ambassador to Cambodia H.E. Dr. Park Jung-Wook at the NA Palace here this morning.

Cambodia and the Republic of Korea established their diplomatic ties in October 1997, and both countries’ leaders share a common vision of promoting bilateral relations and cooperation to the level of strategic partnership, he recalled.

The Cambodian NA president also expressed his gratitude to the Republic of Korea for its significant contribution to the current peace and development process in Cambodia through the provision of grants and concessional loans, infrastructure development, and cooperation in the areas of the economy, trade, tourism, education, culture, health, etc.

Regarding the cooperation in the field of parliamentary diplomacy, Samdech Heng Samrin said that the two parliaments have actively contributed to enhancing the cooperation between the two governments through experience sharing, visit exchange, and so on, and supported each other on inter-parliamentary forums, both regionally and globally.

For his part, H.E. Dr. Park Chung-wok thanked Samdech Heng Samrin for the warm welcome and congratulated Cambodia on its progress in all domains.

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