Cambodia 20240527: Endeavor, Fortitude, Convergence

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

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Headlines:

Funan Techo Controversy and Strategic Worry

Local Council Elections Go Off Smoothly

Cambodia Tops Emerging Markets for FDI

Cambodia Firm on One-China Policy

Kratie Mekong Bridge Project On Track

First Wind Farms to Boost Renewable Energy

Digital Economy Push for Growth and Security

PLA Expands Presence Amid Joint Naval Exercises

Diplomatic Roundup: US, CN, AU, JP, IN

Economic Diplomacy Drives Growth and Trade

Rapid Response System Tackles Bird Flu

India to Reintroduce Tigers

Japan Pushed on Sihanoukville Port Upgrade

From Garbage Mountain to University

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Funan Techo Controversy and Strategic Worry

The Funan Techo Canal project, backed by Chinese funds, is intended to link the Mekong River to the Gulf of Thailand, reshaping regional trade by reducing reliance on Vietnamese ports. While the project promises big economic benefits, including jobs and improved irrigation, it has raised eyebrows over environmental impacts and geopolitical implications. Critics argue that the canal could be used for military purposes, though Cambodia denies this, talking up the canal's economic focus. Despite the tension, Cambodia says it remains committed to maintaining strong diplomatic ties with Vietnam.

Read more: Fulcrum (historical context), Nikkei Asia (Economic Benefits), Nikkei Asia (Vietnam Concerns), The Diplomat (Security Concerns), Nikkei Asia (Critic's Perspective), Cambodianess (Diplomatic Efforts), Dari Mulut ke Mulut (Environmental Impact)

Local Council Elections Go Off Smoothly

Local council elections for the fourth mandate went off without a hitch on May 26, 2024, with five political parties vying for seats. The ruling Cambodian People's Party (CPP) is expected to secure the lion's share of seats, with a whopping 99% of eligible voters casting their ballots. The process was praised for its security, orderliness, and lack of irregularities. Preliminary results point to a big win for the CPP, cementing their dominant position in Cambodian politics. Official results are set to be announced on June 8.

Read more: Xinhua (Election Details), Cambodianess (Turnout), Xinhua (Preliminary Results), Khmer Times (Security Measures)

Cambodia Tops Emerging Markets for FDI

The nation has snagged the top spot as the leading emerging market for foreign direct investment (FDI) in 2024, according to fDi Intelligence. The country's 6.1% GDP growth, low 3% inflation rate, and massive jumps in FDI capital expenditure (393%) and new projects (110%) have been drivers. Government policies promoting investment, infrastructure development, and economic diversification have also played a role, along with the tourism sector's recovery and growth in non-garment exports.

Read more: Khmer Times

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Cambodia Firm on One-China Policy

Cambodia reiterated its backing of China's One-China policy, opposing Taiwan's independence ahead of Foreign Minister Sok Chenda Sophea's visit to China. This stance is not new, or surprising, as it aligns with Cambodia's reliance on Chinese investment and infrastructure loans. Analyst Ro Vannak cautioned that Cambodia should maintain its non-aligned foreign policy to safeguard its independence. Meanwhile, Taiwan's new president, William Lai, urged China to respect Taiwan's democracy, as tensions rise.

Read more: Cambodianess