The DoubleStar factory in Kratie has the capacity to produce 70,000 to 80,000 tires ayear, and is expanding. Hong Raksmey
The Kratie Special Economic Zone (SEZ), located in Snoul district, is emerging as a key player in the country's economic future, thanks to its prime location, growing investments and expanding infrastructure.
The zone’s potential is further amplified by the planned development of the Funan Techo Canal, which is expected to significantly reduce export costs and enhance Cambodia’s competitiveness in the global market.
Covering an area of 818 hectares, the Snuol SEZ is already home to 14 companies, with a total investment of $1.2 billion, and has three more companies poised to enter.
Among these new entrants are large tyre manufacturers and a wind turbine factory, which highlights the growing diversity of industries in the zone.
China’s ‘Made in Cambodia’ products are the country’s second-largest state-owned enterprises, with a history of more than 100 years and a total investment of $3 billion. Hong Raksmey
These investments are expected to create thousands of jobs and drive local economic growth.
Zhang Lu Ze, director of the SEZ, expressed optimism for the future of the zone, particularly in the context of Cambodia’s increasing role in regional trade.
“All products from the special economic zone are exported to Vietnam. Companies have high hopes for the Funan Canal, which will lower transportation costs, and many companies will use the canal to export products.”
Lu Ze’s confidence stems from the zone’s strategic location, just 1.5 kilometres from the Cambodia-Vietnam international land port and 160 kilometres from Vietnam’s Ho Chi Minh Port.
The future Trans-Asian Railway, which will pass through Snoul ditrict, promises to further bolster the zone’s connectivity, making it a central node for trade between Cambodia, Vietnam and beyond.
The Company earned $2 million from tire production in 2024. Hong Raksmey
The zone’s design is comprehensive, incorporating diverse industrial areas such as rubber processing, timber, construction materials and the processing of agricultural products.
With plans to house over 200 enterprises and generate up to 100,000 jobs, it’s clear that the Snuol SEZ has ambitious goals to transform Cambodia into a manufacturing powerhouse.
One of the most exciting developments is the projected canal. Zhang Lu Ze sees this project as a key opportunity for reducing transportation costs, thus enhancing Cambodia's overall export capacity.
“The Funan Techo Canal will help businesses in the zone by cutting down on transportation costs. This will make Cambodian products more competitive in international markets, especially in terms of logistics efficiency,” he reiterated.
The Snuol SEZ is not just investing in transportation infrastructure; it is also developing critical utilities such as water treatment plants, sewage treatment plants and power generation facilities.
With an investment of more than $27 million, DoubleStar has hired 1,700 employees in the first phase. Hong Raksmey
These investments will ensure that the zone has the necessary infrastructure to support both small and large-scale manufacturing operations.
In addition to infrastructure, the SEZ offers a range of supportive services, including one-stop management for customs clearance, investment consultancy and assistance with land leases and plant construction.
These services are designed to streamline the process for businesses, helping them set up operations quickly and efficiently.
To further attract investment, the zone offers preferential policies such as tax exemptions on corporate income, export goods and imported materials.
“Investors can also benefit from incentives such as reduced land rental fees and customised plant construction, which make the SEZ an appealing choice for foreign investors,” explained Lu Ze.
One of the key investors in the Snuol SEZ is DoubleStar, China’s second-largest tyre manufacturer.
With an investment of more than 200 million yuan ($27.5 million), DoubleStar has 1,700 employees in the first phase and is starting a second phase, focusing on local workers, both in terms of employment and skills.
“In Kratie, and other provinces, 50,000 to 60,000 tonnes of rubber are used each year for tyre production,” said Chen Gang, CEO of DoubleStar.
DoubleStar has the capacity to produce 70,000 to 80,000 tires in 2024, but there is no local distribution yet. Gang said the company will allocate 15 per cent for sales in Cambodia.
Gang said the company is currently preparing license documents to sell tires locally, which will be labelled “Made in Cambodia.”
China’s “Made in Cambodia” products are the country’s second-largest state-owned enterprises, with a history of more than 100 years and a total investment of $3 billion, with the main markets being the EU and US.
“We earned $2 million from tire production in 2024,” added Gang.
Despite concerns about an increase in US import tariffs under the Trump administration, Gang said he is not concerned, as his supply chain focuses on quality.
“I find it hard to see his [Trump’s] behaviour. He hopes for his own business, and I only do my own production. I am not worried because the government supports me,” Gang told The Post.
