CDC Approval Signals a New Phase of Growth for Cambodia Tyre Manufacturing
Cambodia automotive tyre manufacturing and export industry gained fresh momentum in 2025 following the approval of four major investment projects by the Council for the Development of Cambodia, with total capital investment reaching nearly 780 million dollars. These approvals reflect growing confidence in Cambodia as a competitive manufacturing base for the global automotive supply chain and underline the country’s steady transition from traditional manufacturing into higher value industrial production linked to export driven growth.
Investment Performance Reaches Record Highs in 2025
According to a CDC press release issued on January 5, the Cambodian Investment Board registered 630 investment projects in 2025 with a combined capital of approximately 10 billion dollars and the potential to create about 438,000 jobs nationwide. Of these projects, 387 were located outside Special Economic Zones while 243 were established within SEZs, demonstrating balanced industrial expansion across regions. The CDC stated, “Notably, the number of registered investment projects increased by 216 projects, or about 52 per cent, while total investment capital rose by approximately $3 billion, or about 45 per cent, compared to 2024 when the CDC registered 414 projects with a total investment of around $6.9 billion. This achievement sets another new record, following a record already set by the CDC in 2024.”
Tyre Manufacturing Emerges as a Strategic Industrial Focus
Among the key investment sectors approved in 2025 were agricultural plantations, food processing, cement production, iron ore operations, textiles, automobile assembly, hospitality, power generation and automobile tyre manufacturing. In the tyre segment specifically, the CDC approved four large scale projects, including one located in the ISI SEZ in Preah Sihanouk province and three others in Special Economic Zones in Svay Rieng province. Together, these projects represent approximately 774 million dollars in investment capital, highlighting tyre manufacturing as a priority industrial activity aligned with export growth and regional supply chain integration.
Economic Fundamentals Attract Global Investors
Economist Hong Vanak of the Royal Academy of Cambodia explained that the global automobile tyre market continues to expand as vehicle usage increases worldwide, making tyre manufacturing a long term growth industry. He noted that Cambodia’s appeal to tyre manufacturers stems from investment friendly laws, improving transport infrastructure, access to high quality natural rubber, a large and cost effective workforce, and broad access to export markets. “With Cambodia’s current advantages, there is a clear opportunity for investors to open tyre manufacturing plants in the country,” he said. “Tyre manufacturing is a business with strong profit potential and long-term prospects, because regardless of circumstances, demand for tyres remains consistently high.”
Export Performance Confirms Industry Competitiveness
Official data from the Ministry of Commerce shows that during the first eleven months of 2025, Cambodia exported automobile tyres worth more than 1.2 billion dollars to international markets, representing an increase of nearly 60 per cent compared to the same period in 2024. This strong performance follows an exceptional surge in 2024 when tyre exports generated over 874 million dollars, marking an increase of more than 490 per cent compared to 2023 and confirming the sector’s rapid acceleration.
Industry Leaders Highlight Quality and Market Acceptance
Ken Oudomonysinat, CEO of Sailun Tire Cambodia, said that tyres produced in Cambodia are gaining strong acceptance in both domestic and international markets, positioning the product as one of the country’s most promising export items. He pointed to favourable investment laws, high quality Cambodian natural rubber, competitive labour costs and strong global demand as key factors attracting major international manufacturers. “In 2024, my company produced and sold more than 60,000 tyres in the domestic market and for export. But in 2025, in just the first eight months of the year, the company had already sold around 100,000 tyres,” he said. He added, “Within ASEAN, Cambodian natural rubber is considered among the best in quality. In fact, Sailun tyres produced in Cambodia using Cambodian rubber are regarded as some of the highest-quality products.”
Conclusion
The approval of four major tyre manufacturing projects in 2025 underscores Cambodia’s rising role in the regional and global automotive supply chain. Supported by strong policy frameworks, abundant natural resources, and growing investor confidence, the tyre manufacturing industry is emerging as a cornerstone of Cambodia’s industrial development strategy. With exports expanding rapidly and product quality earning international recognition, the sector is well positioned to deliver sustained economic growth, job creation, and long term export competitiveness for the Kingdom.