Cambodia on Thursday inaugurated a 133-km China-funded national road No. 8 in Prey Veng province, hoping that the road will contribute to promoting social and economic development in the country's eastern part.

The road, which connects from Prek Tamak Mekong River Bridge to Vietnam border, cost about 107 million U.S. dollars including 83 million U.S. dollar concessional loan from Chinese government and the rest covered by Cambodian government.

Cambodian Prime Minister Hun Sen and Chinese Ambassador to Cambodia Pan Guangxue presided over the inauguration ceremony, which was attended by senior government officials, foreign diplomats, about 5,000 residents and students.

Hun Sen said the road was a new achievement resulted from good and close relationship between Cambodia and China.

"The road not only connects travelling inside the country, but also links to Vietnam," he said. "It is very important to boost economic development and improve rural lives."

"On behalf of the government and people of Cambodia, I'd like to express gratitude to the government of China and her people for providing both grants and loans to Cambodia for social and economic development," the premier said.

Ambassador Pan said that China was pleased to see this new achievement because the road is crucial for farmers to travel or transport their products to Phnom Penh, the capital of Cambodia, or to Vietnam.

Meanwhile, Pan also congratulated Cambodia for successfully hosting the 21st Summit of the Association of Southeast Asian Nations (ASEAN) and related Summits early this week.

The official visit of Chinese Premier Wen Jiabao to Cambodia and his participation in the ASEAN Summits from Nov. 18-20 had reflected China's willingness to boost closer ties with Cambodia in particular and with ASEAN in general, he added.

National road No. 8 was built by the Shanghai Construction ( Group) General Company. It took 4 years to be completed.

Prey Veng province is situated about 78 km in the east of Phnom Penh.