Cambodia 20240429: Discord, Garrison, Cohesion

Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.

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Headlines:

High Stakes, Hot Debate for Funan Techo Canal

Peace, Stability Key to Investment Strategy

Labor Scores Wins in Mobility, Dispute Resolution

Cambodia Seeks Continued US Support

Doubling Down on Asian Ties via CICA

Chinese Navy Settles in at Ream

Senate Steps Up Diplomatic Game

New Air Link and AirAsia Fleet Expansion

Cambodia Claps Back at US Rights Report

Chinese FM Visit Boosts Cooperation

Cambodia and Japan Celebrate Tight Bonds

New Consultation Mechanism with Egypt

Race to Save Mekong's Irrawaddy Dolphins

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High Stakes, Hot Debate for Funan Techo Canal

The Funan Techo Canal project is still in the spotlight, with both domestic optimism and regional hand-wringing. Backed by the Chinese, the project promises economic growth and less reliance on Vietnamese ports by connecting the Mekong River to the Gulf of Thailand. But it's not all smooth sailing - Vietnam is getting antsy about shifts in trade dynamics and environmental impacts on the Mekong Delta, which could threaten agriculture with saltier water and disrupted flows. Cambodian leadership, helmed by Hun Sen, is standing firm, brushing off negotiations and playing the national sovereignty card. Environmentalists are sounding the alarm over potential ecological disruptions, while proponents argue it's the ticket to economic independence and beefed-up regional trade capabilities. The project is also a clear pivot towards China, something to watch in the shifting power dynamics of Southeast Asia.

Read more: Khmer Times (Project Benefits), Cambodianess (Negotiations), VnExpress (Environmental Concerns), Phnom Penh Post (Assertive Declaration), Modern Diplomacy (Analysis of National Interests), ThinkChina (Geopolitical Implications)

Peace, Stability Key to Investment Strategy

The Prime Minister is hammering home the point that the nation's investment strategy needs to both keep existing investors happy and lure in new ones, with a focus on maintaining economic stability and supporting growth across the board. During a recent powwow in Phnom Penh, the PM talked up the importance of having the backs of all enterprises, even those in the informal economy, to keep development chugging along as they are folded into the broader economy. Peace and political stability got the spotlight as must-haves for attracting and keeping investors in the game.

Read more: Khmer Times

Labor Scores Wins in Mobility, Dispute Resolution

Cambodia is making gains in sprucing up the labor sector. The International Labour Organization (ILO) gave a thumbs-up to Cambodia's progress in social security and vocational training. The Prime Minister bragged about a better track record in settling labor disputes, with an 84% success rate this year. The Ministry of Labor also hosted the second Mekong Dialogue zeroing in on labor mobility to boost regional cooperation, safe migration, and socio-economic growth through policy frameworks and protection of migrant rights.

Read more: Khmer Times (Social Security/ILO praise), Khmer Times (dispute Resolution), Khmer Times (Regional Labor Mobility)

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Cambodia Seeks Continued US Support

Cambodia is sending a clear message: we want the US to keep the development support flowing. Deputy Prime Minister Sun Chanthol spelled it out during a sit-down with outgoing US Ambassador, W. Patrick Murphy. The Deputy PM highlighted just how crucial US assistance has been in Cambodia's quest to level up to an upper middle-income country by 2030. He also laid out plans to court more American businesses to set up shop in Cambodia.

Read more: Khmer Times