THBONG KHMUM โ Prime Minister Samdech Moha Borvor Thipadei Hun Manet has called on rubber processing factories in Cambodia to strengthen cooperation with local partners in order to enhance domestic processing capacity and promote locally made products.
Quick Facts
| Item | Detail |
|---|---|
| Event | Inauguration of KIMS Rubber factory |
| Speaker | PM Hun Manet |
| Key message | Strengthen local partnerships for domestic processing |
| Q1 2026 rubber export value | US$649 million |
| Yearโonโyear growth | +42.5% |
| Source | General Department of Customs and Excise (GDCE) |
Speaking at the inauguration ceremony of a rubber processing factory operated by KIMS Rubber (Cambodia) Co., Ltd. in Thbong Khmum province this morning, Samdech Thipadei urged newly established factories to expand partnerships with local manufacturers to strengthen domestic production and processing of raw materials.
“If we can do this, it will improve the production chain from raw materials to local products and create more jobs in Cambodia,” the prime minister underlined.
Rubber as a Strategic Agro-Industrial Product
The premier described rubber as a strategic agroโindustrial product that can be processed into various finished goods, contributing directly to the expansion of Cambodiaโs agroโindustrial sector.
He also encouraged the company to explore partnerships with other firms to increase the use of locally available raw materials and consider signing agricultural contracts with familyโbased rubber communities to ensure a stable and affordable supply.
Q1 2026 Rubber Exports Surge
According to the General Department of Customs and Excise (GDCE), Cambodiaโs rubber sector generated US$649 million from exports of rubber and rubberโbased products in the first quarter of 2026.
The figure marks a 42.5% increase compared to the same period last year, reflecting growing global demand and the sectorโs increasing contribution to the national export economy.
Context
The Prime Ministerโs remarks align with the Royal Governmentโs broader strategy to move beyond raw commodity exports and build integrated domestic supply chains. The newly inaugurated KIMS Rubber plant, with an annual capacity of 100,000 tonnes, is expected to play a key role in this transition by supplying processed rubber to local tyre manufacturers and other downstream industries.
Analystโs View
Mr. Sok Piseth, an agricultural economist, noted that the Prime Ministerโs call for local partnerships addresses a longโstanding gap in Cambodiaโs rubber sector.
“For years, Cambodia exported raw latex and reโimported finished rubber goods. By encouraging factories to sign contracts with local rubber communities and cooperate with domestic manufacturers, the government is trying to close that loop. The 42.5% export growth in Q1 2026 shows that global demand is strongโnow the focus must be on keeping more of that value inside Cambodia.”
Outlook
The government aims to increase domestic rubber processing to 30% of total production by 2028, up from an estimated 15% in 2025. With new processing plants coming online and stronger local partnerships, the sector is positioned for continued growth.
FAQ: Cambodia’s Rubber Sector & Local Processing Partnerships
Q: Why is Prime Minister Hun Manet urging rubber factories to strengthen local partnerships?
A: The Prime Minister wants to move Cambodia beyond raw commodity exports. By partnering with local manufacturers, rubber processors can create integrated domestic supply chainsโturning raw rubber into finished products locally. This keeps more economic value within Cambodia and creates more jobs.
Q: How does this benefit local rubber tappers and communities?
A: Stronger partnerships mean factories can sign direct agricultural contracts with familyโbased rubber communities. This provides tappers with stable, predictable prices and guaranteed buyers, shielding them from volatile market fluctuations.
Q: What recent data shows the growth of Cambodia’s rubber sector?
A: According to the General Department of Customs and Excise (GDCE), Cambodia exported US$649 million worth of rubber and rubberโbased products in the first quarter of 2026 โ a 42.5% increase compared to the same period in 2025.
Q: What is the government’s target for domestic rubber processing?
A: The government aims to increase domestic rubber processing to 30% of total production by 2028, up from an estimated 15% in 2025. The new KIMS Rubber plant in Thbong Khmum (100,000 tonnes/year) is a major step toward that goal.
Q: How does this connect to Cambodia’s broader agroโindustrial strategy?
A: Rubber is considered a strategic agroโindustrial product. By processing it locally, Cambodia can supply raw materials to domestic tire factories and other downstream industries, strengthening the entire industrial ecosystem and attracting more foreign investment in manufacturing.
Q: What did PM Hun Manet specifically ask KIMS Rubber to do?
A: He encouraged the company to explore partnerships with other local firms to increase the use of locally available raw materials and to consider signing agricultural contracts with familyโbased rubber communities to ensure a stable and affordable supply.
Q: Where can I find official export data for Cambodia’s rubber sector?
A: Official export data is published by the General Department of Customs and Excise (GDCE) and the Ministry of Agriculture, Forestry, and Fisheries. The most recent Q1 2026 figures show $649 million in rubber exports, up 42.5% yearโonโyear.