A view inside a tyre manufacturing factory in the Sihanoukville Special Economic Zone (SSEZ). Supplied
Cambodia generated nearly $800 million from vehicle tyre exports to international markets in the first 11 months of 2024, marking a more than 130% increase compared to the same period in 2023, according to the Ministry of Commerce.
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A ministry report on 2024-2025 trade activities and directions revealed that from January to November, tyre exports reached $772.55 million, a 135.34% increase from $328.27 million year-on-year. Tyre exports accounted for 3.17% of the country’s total export earnings for the first 11 months of 2024, which totalled $24.35 billion.
Lim Heng, Vice-president of the Cambodia Chamber of Commerce, told The Post on December 23 that the growth in export earnings from Cambodian-made tyres can be attributed to the establishment of production facilities by prominent international manufacturers.
He noted that these companies are drawn to Cambodia due to its profitability in both local and export markets.
Heng explained that the country offers several domestic advantages, including political stability, favourable investment laws, an affordable and youthful labour force, reliable transportation infrastructure and an abundant annual supply of rubber at competitive costs. Externally, he said the country’s participation in multiple trade agreements and access to preferential tariff systems further bolster its appeal.
“The earnings Cambodia is collecting from exporting tyres to international markets will continue to increase significantly. Meanwhile, tyre manufacturers are continuing to invest and expand their operations in Cambodia,” Heng stated.
He added that most tyre manufacturers operating in Cambodia are from China. He noted that many of these factories are located in special economic zones (SEZs) such as Svey Rieng (Bavet), Sihanoukville and Kratie.
Ministry secretary of state Pen Sovicheat attributed the growth in export earnings from tyres to the country’s successful efforts in promoting exports and the increasing number of tyre factories. He highlighted the government's focus on improving legal and investment frameworks and negotiating enhanced market access agreements with other countries.
“The export of tyre products is another success story for Cambodia, as it allows the country to sell its products in international markets. The export of industrial sector products is steadily increasing,” he stated.
In September 2024, the Council for the Development of Cambodia (CDC) approved investment projects for two tyre manufacturing plants. One will be located in the UBE Snuol SEZ in Kratie province’s Snuol district and the other in the SIN Bavet SEZ in Svay Rieng province’s Bavet town.
At the inauguration of a Newbustar Group tyre manufacturing plant in the UBE Snuol SEZ in September, Chia Vuthy, secretary-general of the CDC’s Cambodian Investment Board (CIB), called the company’s decision to establish operations in Cambodia a strategic move. He said the investment would significantly contribute to the country’s economic transformation, socioeconomic development and job creation for local communities.
In May, Prime Minister Hun Manet urged tyre factories to use locally sourced rubber to support domestic markets.
According to the General Department of Rubber, the country exported over 340,000 tonnes of rubber during the first 11 months of 2024, a year-on-year increase of nearly 8,000 tonnes, or 3.12%. Cambodian rubber is primarily exported to Malaysia, Vietnam, Singapore and China.
The country currently has around 407,172 hectares of rubber plantations, of which 320,184 conntain mature rubber trees. The remainder comprise newly planted areas that have not yet reached harvesting stage.
