Cambodia has rapidly become an important Southeast Asian investment destination for Chinese tyre companies in recent years. As one of the world’s major natural-rubber-producing areas, Cambodia has 425,000 hectares under rubber cultivation. Relatively low labour costs also offer advantages for tyre manufacturing.
In 2021, Sailun Tyre built and began operating a plant in Bavet, Svay Rieng province, becoming Cambodia’s first tyre factory. General Science subsequently established operations in Preah Sihanouk province, while Doublestar invested in a factory in Kratie province; both reportedly began production and made a profit in the same year. Three Chinese-invested tyre companies are now in production and another two are under construction. As capacity has been released, tyre exports have surged: exports reached US$870 million in 2024, up 129% year on year, and exceeded US$659 million in the first half of 2025, rising nearly 80% to a new high.
Industry observers say favourable US tariff policies and abundant rubber resources have made Cambodia an important base for Chinese tyre companies seeking to overcome European and US trade barriers and reach international markets. Their investments have also created many local jobs. Local workers now account for more than 90% of employees, and many have advanced to positions such as shift leader, team leader and human resources supervisor, reflecting a gradual upgrading effect.
The growing number of companies has increased demand for logistics, electricity and other supporting services. Cambodia’s government has introduced a logistics system master plan for 2023–2033 and is accelerating port and electricity projects to support a tyre industry cluster. Analysts believe that, with more raw-material suppliers entering the market, Cambodia could become an emerging regional tyre manufacturing centre and play an increasingly important role in China–Cambodia economic cooperation.
Compiled by this station
