Cambodia on Thursday inaugurated a China-funded national road No. 78 in the country's northeastern provinces, which is expected to contribute to developing economy and poverty reduction.

The 121-kilometer road, extending from Ratanakiri province to Stung Treng province, was built by China's Shanghai Construction ( Group) General Company under a $73.3 million soft loan from the Chinese government and took 40 months to be completed.

Cambodian Prime Minister Hun Sen and Chinese Ambassador to Cambodia Pan Guangxue presided over the inauguration ceremony.

Hun Sen said the northeastern provinces are situated in the country's fourth economic pole.

"The fourth economic pole is the pole of agro-industry. The road will greatly contribute to developing economy and poverty reduction," he said.

"Through Ambassador Pan Guangxue, I'd like to express my 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.

He also said that the friendship relations and cooperation between Cambodia and China in all fields are stronger from day to day.

Ambassador Pan hailed Cambodia's rapid social and economic development, expressing the belief that the road will help improve lives in northeastern provinces.