1.4 billion yuan tire factory project settled in Cambodia

The latest quarterly investment report released by the Council for the Development of Cambodia (CDC) on April 8 showed that a total of 172 investment projects were approved in the first quarter of 2025, with a total investment of US$2.5 billion, a year-on-year increase of 14%, demonstrating the country's strong appeal as an emerging regional manufacturing hub.

China remains the largest source of investment

Among all 172 projects, investment from China accounted for 56.2%, continuing to be the largest source of foreign investment in Cambodia. This not only reflects the close economic cooperation between China and Cambodia, but also shows that Chinese companies are accelerating the transfer of industrial layout to Southeast Asia to cope with changes in the international situation and cost pressures.

Tire manufacturing project attracts attention: investment of nearly US$200 million

Among the many investment projects, a tire manufacturing plant project is particularly eye-catching. The project is located in the Special Economic Zone of Bavet City, Svay Rieng Province, with a total investment of US$195 million (approximately RMB 1.42 billion), and plans to create 1,020 jobs for the local area.

Although the specific production capacity and company name have not been disclosed, multiple media analyses pointed out that the project is very likely to be invested and constructed by Chinese tire companies, further consolidating the dominant position of Chinese companies in the tire manufacturing industry in Southeast Asia.

Cambodia: A new hot spot for the tire industry

Currently, 6 Chinese tire companies have set up in Cambodia: Sailun Tire, General Tire, Doublestar Tire

Under construction: Wanli Tire, Zhengdao Tire, Fumax Tire

Chinese tire companies have "gone global" one after another, not only to disperse international market risks and optimize the supply chain, but also to see the multiple advantages of Cambodia:

Raw material advantages

Cambodia has abundant natural rubber resources, providing a stable supply of raw materials for tire production.

Strong policy support

The Cambodian government provides a series of incentive policies, including a "tax-free holiday" of up to 9 years, and companies can also enjoy substantial benefits such as import tariffs, special taxes and VAT exemptions.

Location and labor advantages

Close to the Southeast Asian market and relatively low labor costs, it provides a good platform for China's manufacturing industry to go overseas.

The internationalization of the tire industry continues to advance

The tire industry is an industry with a high degree of internationalization. With the growth of global car ownership, the recovery of international logistics, and the advancement of green manufacturing trends, Chinese tire companies are accelerating the allocation of global production capacity. Southeast Asian countries such as Cambodia, Vietnam, and Thailand have become the preferred places for "going global".

The implementation of this investment is a microcosm of the international development of China's tire industry chain, and it also means that Cambodia is becoming an emerging force in the world's tire manufacturing.