CAMBODIA GAINS GROUND IN GLOBAL RUBBER MARKET

By Vijian Paramasivam

PHNOM PENH, Jan 30 (Bernama) -- Cambodia is gaining a stronger grip in the global rubber market as demand for tyres is boosting domestic production of latex. 

The General Department of Customs and Excise of Cambodia announced that rubber and rubber products exports in 2025 crossed RM8 billion (US$2 billion) - almost a 37 per cent jump compared with 2024.

“Cambodia’s rubber production growth in recent years has been driven by the expansion of productive plantation areas and improved agronomic practices, as well as supportive market conditions, including stronger global rubber prices and rising domestic demand from tyre manufacturing,” Cambodia-based Multi Venture Plantation Chief Executive Officer Sebastian George told Bernama.

Annually, about 448,000 hectares are devoted to planting rubber in the Kingdom, where local planters produce roughly 300,000 metric tonnes of natural rubber.

The Cambodian General Directorate of Rubber reported a slight drop in natural rubber exports to RM2.4 billion (US$604 million) last year, a nine per cent dip compared with the year before.

However, the nascent industry is emerging as a critical sector in Cambodia’s robust agriculture sector that contributes slightly above 20 per cent to the nation’s gross domestic product. 

Cambodia is now competing in an industry historically dominated by planters from Malaysia, Indonesia and Thailand, established leaders in latex production in the region. 

Thailand is the largest producer with about five million metric tonnes last year, followed by Indonesia’s two million metric tonnes, Vietnam’s 1.3 million, while Malaysia’s output of about 535,000 metric tonnes, according to estimates by the Association of Natural Rubber Producing Countries (ANRPC).

“While Cambodia remains smaller than major Southeast Asian producers such as Thailand, Vietnam and Indonesia, it competes effectively through geographic proximity to key markets, improving quality and cost-efficient production,” said George. 

Cambodian rubber reaches markets in China, Malaysia, Singapore and Vietnam, where the commodity is a critical raw material in the production of medical gloves, tyres, footwear and consumer products. 

Industry experts predict prices of natural rubber will remain high due to tight supply and rising demand, largely driven by the automotive industry.  

The Malaysian Rubber Board in its December Digest said that supply could be hampered by limited new plantings, Indonesia’s crop diversification, high raw material prices due to flooding in southern Thailand and the Thai–Cambodia conflict. 

According to the ANRPC, there is a supply-demand gap in the industry, with the automotive industry, a major consumer of natural rubber, continuing to drive demand. 

These fundamental factors could influence an upward price movement, the ANRPC said. 

“As the global economy recovers and vehicle production ramps up, the need for rubber in tyre manufacturing and other automotive components is increasing,” it said.

Cambodia is now home to nearly nine reputable automobile assembly plants, including Toyota, BYD, ISUZU and Ford, which have established their factories in the country. 

-- BERNAMA