Cambodia’s Tire Industry Explodes with Nearly $1.4 Billion in 2025 Exports
PHNOM PENH – Cambodia’s industrial landscape is undergoing a massive transformation as the nation’s fledgling tire manufacturing sector officially hit “powerhouse” status. In 2025, tire exports reached a staggering $1.38 billion, marking a nearly 58% increase over the previous year’s $874 million.
This surge isn’t just a win for manufacturers; it’s a game-changer for the local economy. For the first time, Cambodia is shifting from simply exporting raw materials to becoming a sophisticated producer of high-value finished goods.
The Rise of the Cambodian “Rubber Belt”
According to the Council for the Development of Cambodia (CDC), the Kingdom now hosts eight tire manufacturing factories.
- 5 Factories are currently fully operational.
- 3 Factories are under construction, signaling that the growth trend is only just beginning.
H.E. Penn Sovicheat, Secretary of State and Spokesperson for the Ministry of Commerce, noted that this rapid growth proves Cambodian-made tires are now widely recognized and accepted in the global market.
Domestic Shift: Why Raw Rubber Exports are Falling
In a fascinating twist for the agricultural sector, exports of raw rubber latex actually dropped by 12% in 2025. However, this is actually good news.
The data shows that domestic consumption of rubber latex skyrocketed by 146%, reaching over 124,000 tonnes. This means that instead of shipping raw rubber overseas to be processed elsewhere, Cambodia is keeping its resources at home to feed its own factories.
“Tyre factories use locally produced rubber latex as raw material, creating a stable market for rubber farmers and plantation owners,” said Mr. Lim Heng, Vice President of the Cambodia Chamber of Commerce.
2025 Performance at a Glance
| Metric | 2024 | 2025 | Growth % |
| Tire Export Value | $874 Million | $1.38 Billion | +57.86% |
| Domestic Rubber Use | ~50,000 Tonnes | 124,321 Tonnes | +146% |
| Raw Rubber Exports | 390,000+ Tonnes | 343,762 Tonnes | -12% |
FAQ: The Cambodian Tire Boom
1. Why is it better to use rubber domestically than to export it?
Using raw materials domestically creates “Value-Add.” By turning $600 million worth of rubber into $1.4 billion worth of tires, Cambodia keeps more profit, creates thousands of factory jobs, and builds a more resilient industrial economy.
2. Is this growth sustainable?
With three additional factories currently under construction, production capacity is expected to increase further. As long as global demand for vehicle tires remains steady, Cambodia is positioned as a competitive regional hub.
3. Who are the primary buyers of Cambodian tires?
While the report focuses on total export value, major markets typically include North America, Europe, and neighboring ASEAN nations looking for cost-effective, high-quality manufacturing alternatives to China.
4. How does this impact local rubber farmers?
It provides them with a “stable market.” Instead of being purely at the mercy of volatile global commodity prices for raw latex, farmers now have long-term, local industrial buyers.