Cambodia's Tire Industry Boom
Cambodia, once known for its garment manufacturing, is now undergoing a profound industrial transformation. The tire manufacturing industry is rapidly emerging as a new driver of economic growth in this Southeast Asian nation.
According to statistics from the Cambodian Ministry of Commerce, in the first seven months of 2025, the country's automobile tire exports reached US$759 million (approximately RMB 5.43 billion), a significant year-on-year increase of 72.8%.
The rise of Cambodia's tire manufacturing industry is primarily reflected in a surge of foreign investment. Currently, Cambodia has attracted seven foreign tire manufacturers, three of which have already begun exporting.
All of this investment comes from China, including well-known companies such as Sailun Tire, General Tire, and Doublestar Tire.
Sailun Tire has continuously increased its investment in Cambodia in recent years. Its projects with an annual production capacity of 9 million semi-steel radial tires, 12 million semi-steel radial tires, and 1.65 million full-steel radial tires have all entered mass production.
In January 2025, Sailun announced an additional investment of US$93.48 million in the "Cambodia All-Steel Radial Tire Expansion Project," with an expected annual production capacity of 1.65 million all-steel radial tires.
Cambodia boasts abundant rubber resources, providing a solid foundation for the development of its tire manufacturing industry. According to data from the Cambodian Ministry of Agriculture, Forestry and Fisheries, the country's total rubber plantation area reaches 425,400 hectares, of which 330,000 hectares, or 78%, are already in the tapping season; the remaining 95,200 hectares, or 22%, are still under maintenance.
The Cambodian government estimates that once all five Chinese tire factories are fully operational, 200,000 to 300,000 tons of latex will be required annually as the primary raw material for tire manufacturing, which will drive the development of Cambodia's rubber processing industry.
Despite this, due to Cambodia's limited rubber processing capacity, currently operating tire factories in Cambodia still rely on imports for the majority of their rubber raw materials.
The tire manufacturing industry has become a new engine of Cambodia's economic growth. In 2024, Cambodia's automobile tire exports are expected to reach US$870 million, a 129% increase from US$380 million in 2023.
The tire manufacturing industry has surpassed infrastructure, energy, and garments to become Cambodia's largest source of foreign direct investment.
In the first 10 months of 2024, the Council for the Development of Cambodia approved 346 investment projects totaling US$5.545 billion. Of this total, tire manufacturing and related industries accounted for US$1.005 billion, making it the sector attracting the most investment.
