Rubber Processing Expansion Fuels Cambodia’s Tire Export Boom

PHNOM PENH, May 29, 2026 (KPT) — Cambodia is accelerating the expansion of its rubber processing industry as booming tire exports drive demand for domestic raw materials and value‑added manufacturing, officials said Wednesday.

The Council for the Development of Cambodia said tire exports reached US$630.2 million in the first four months of 2026, up 44 percent from a year earlier, following a 58 percent surge in 2025 when shipments totaled US$1.38 billion.

The rapid growth of tire manufacturing has increased pressure to strengthen supply chains and processing capacity. Cambodia has attracted major investments, including a US$450 million tire and inner tube project in Kratie province.

Kims Rubber (Cambodia) also announced plans for a US$30 million factory in Ratanakiri with an annual capacity of 100,000 tons, matching its newly inaugurated plant in Tbong Khmum.

Despite being a major producer, Cambodia continues importing large volumes of processed rubber from Thailand, Vietnam and Côte d’Ivoire due to shortages of standardized raw materials. Imports rose more than 79 percent in the first four months of 2026.

Prime Minister Hun Manet has identified agro‑processing and industrial upgrading as priorities under the government’s Pentagonal Strategy, urging Cambodia to move beyond raw exports and expand value‑added industries to boost competitiveness and farmers’ incomes.

The Ministry of Agriculture said Cambodia’s rubber plantation area reached 448,051 hectares in 2025, up 5.3 percent from 2024, with half of plantations family‑owned. Output totaled 422,842 tons, generating US$832.9 million in revenue, a 24 percent increase year‑on‑year.