Prime Minister Hun Manet has announced two significant developments in the Kingdom’s tyre manufacturing sector.

He shared the exciting news as he addressed an April 28 celebration, held to observe the 138th anniversary of International Labour Day, due to be marked on May 1.

According to Manet, two new companies are set to join the flourishing tyre industry with a combined initial investment of $500 million, which will be expanded to a total of $1 billion in the near future.

The new ventures are expected to bolster the local economy, while creating numerous job opportunities.

The prime minister lauded the strategic importance of the new investments, encouraging tyre manufacturers to collaborate closely with the Rubber Development Association of Cambodia (ARDC).

It is envisioned that the partnership will enhance support for local rubber plantations, ensuring a robust supply chain for the industry.

Men Sopheak, ARDC president, highlighted the positive impact of the tyre industry on local rubber growers.

“The establishment of tyre factories in Cambodia has transformed the landscape for our rubber market. Previously, we had to seek out export markets for almost all of our rubber products, but now we are seeing a growing domestic market,” he explained.

Current tyre manufacturers have begun procuring rubber directly from Cambodian farmers, which has significantly reduced transport costs and improved the speed of transactions.

“Local sales are quicker and more efficient compared to the lengthy processes involved with exporting,” Sopheak told The Post.

In 2023, the Kingdom exported over 300,000 tonnes of rubber, said Sopheak, according to the Ministry of Agriculture, Forestry and Fisheries’ General Department of Rubber Development.

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Reporter:  Hong Raksmey

Publication date: May 2, 2024

Source: The Phnom Penh Post