At UN, Cambodia Declares Funan Techo Canal a ‘Game Changer’ for Sustainable Growth
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By:
- Sao Phal Niseiy
September 29, 2024 , 1:51 AM
NEW YORK—Deputy Prime Minister and Minister of Foreign Affairs Sok Chenda Sophea said the newly inaugurated Funan Techo Canal is poised to be a "game changer" for Cambodia's sustainable growth as the country is expected to graduate from Least Developed Country (LDC) status by 2029.
“It will be a game changer for sustainable growth in Cambodia and for improving the livelihoods of our people,” Chenda Sophea said during his address at the 79th session of the United Nations General Assembly General Debate, held with the theme: “Leaving No One Behind.”
Inaugurated in August, the Funan Techo Canal will connect Phnom Penh to the Gulf of Thailand. Construction, set to take four years, will span 180 kilometres at a cost of $1.7 billion. The canal, which provides a direct route bypassing the current path through Vietnam, is expected to significantly reduce shipping costs for imports and exports.
Speaking about socio-economic development, Chenda Sophea highlighted Cambodia’s 6 percent economic growth in 2024 and the country's on track to graduate from LDC status within five years.
“Reaching this milestone will reflect our impressive progress in our journey of revival and development,” he stated.
Cambodia's graduation from LDC status presents both challenges and opportunities. LDCs typically receive dedicated international support in areas such as trade and development assistance, benefits Cambodia will no longer enjoy post-graduation.
According to the Deputy Prime Minister, the country aims to reduce poverty by 10% by 2028 and is on track to achieve upper-middle-income status by 2030, to become a high-income nation by 2050.
In his address, Chenda Sophea outlined several strategies Cambodia is pursuing to ensure sustainable growth and achieve its long-term goals.
He noted that Cambodia is enhancing economic diversification by improving its transportation and energy infrastructure while focusing on building human capital, particularly in digital and technical skills.
Chenda Sophea also stressed the importance of investing in quality education, promoting the well-being of women, girls, and marginalized communities, and embracing science and technology—all of which are foundational to the country's growth.
Additionally, Cambodia is accelerating the development of a digital economy and government to improve efficiency, inclusion, and access to public services.
“I am pleased to report significant advancements in financial inclusion, highlighted by the central bank’s introduction of Bakong, an interoperable digital payment system using Blockchain technology,” he said.
Apart from economic, social and digital transformation, Chenda Sophea said that Cambodia seeks to promote gender equality, foster a green and circular economy, and ensure environmental protection to enhance resilience, sustainability and inclusion.