Cambodia and China Sign $2m Deal to Fund Development Projects

PHNOM PENH, June 5, 2026 (KPT) – Cambodia and China have signed an agreement worth nearly $2 million to support seven development projects under the Mekong-Lancang Cooperation (MLC) Special Fund 2026, officials said Friday.

The deal was inked in Phnom Penh on June 4 by Cambodia’s Deputy Prime Minister and Foreign Minister Prak Sokhonn and China’s Ambassador to Cambodia Wang Wenbin.

According to Cambodia’s foreign ministry, the projects – valued at about $1.98 million – span poverty reduction, rural development, healthcare, tourism and digital transformation.

Among the initiatives are a mushroom cooperative in Kandal province aimed at alleviating poverty, a hepatitis elimination programme, and a community-based tourism digitalisation project designed to attract more Chinese visitors.

Other programmes will focus on strengthening green technology, engineering skills and water data management.

Officials said the funding will also help diversify rural economies and improve regional market access through packaging innovation across Mekong-Lancang countries, supporting Cambodia’s broader development priorities.

Since its launch in 2017, the MLC Special Fund has backed 113 projects in Cambodia, ranging from infrastructure and agriculture to education and public health.

The ministry said the latest agreement reflects the continued commitment of Cambodia and China to promoting cooperation among Mekong-Lancang nations, while reinforcing bilateral ties.

The MLC framework, which groups Cambodia, China, Laos, Myanmar, Thailand and Vietnam, has become an important platform for advancing regional connectivity and sustainable development.