Amidst turbulent global economic conditions, Cambodia has seen a remarkable surge in its rubber exports, with earnings reaching $121 million...
Amidst turbulent global economic conditions, Cambodia has seen a remarkable surge in its rubber exports, with earnings reaching $121 million in the first month of this year alone. This marks a staggering increase of 123.5 percent compared to the same period last year, as reported by the General Department of Customs and Excise (GDCE).
The data unveiled by the GDCE highlights a sustained upward trajectory in Cambodia's rubber exports, which commenced in the latter half of 2022 and persisted throughout the entirety of last year. This positive trend has extended into January of the current year, showcasing the resilience of Cambodia's rubber industry amidst challenging global circumstances.
In 2023, Cambodia witnessed substantial growth in its rubber exports, with earnings totaling $919 million, reflecting a notable increase of 69.6 percent compared to the previous year. The robust performance of the Cambodian rubber market is primarily attributed to key trade partners including China, Vietnam, Malaysia, Singapore, India, and the EU.
Meanwhile, the Association of Natural Rubber Producing Countries (ANRPC) based in Kuala Lumpur reported a 9.1 percent increase in global natural rubber production in December of the preceding year, reaching 1.5 million tonnes. However, despite the uptick in production, demand for natural rubber experienced a slight contraction of 3.2 percent, totaling 1.2 million tonnes, according to Heng Guan, Secretary-General of ANRPC.
Thailand emerged as the leading producer of natural rubber in 2023, followed closely by Indonesia, Vietnam, China, India, Malaysia, and Cambodia. China retained its position as the largest consumer of natural rubber, trailed by India, Thailand, and Malaysia. Projections for 2023 anticipated global natural rubber production to reach 14.69 million tonnes, with consumption projected at 14.738 million tonnes.
Experts highlight significant economic challenges facing the natural rubber market, including the subdued growth of the Chinese economy, geopolitical tensions, and rising borrowing costs. These factors, compounded by stubborn inflation and anticipated global economic slowdown, contributed to a decline in rubber prices by nearly 15 percent in the international market last year.
In Cambodia, the Ministry of Agriculture, Forestry, and Fisheries reported over 400,000 hectares of rubber plantations in 2021, with 168 rubber processing factories and handicraft centers across 11 provinces. Kampong Thom leads as the primary rubber-producing province, followed by Mondulkiri and Stung Treng. The emergence of tire factories, particularly by Chinese companies, has bolstered domestic demand for Cambodian rubber.
Chinese tire manufacturers have increasingly invested in Cambodia's rubber industry, capitalizing on the country's low production costs. Notably, General Tire Technology (Cambodia) and Doublestar Tire Industrial have commenced operations and construction of manufacturing plants, contributing to Cambodia's industrial expansion. Cart Tire Co Ltd, another major player, recently launched its first car tire production line in Cambodia's Svay Rieng province.
Cambodia's rubber industry demonstrates resilience and growth amidst global economic shifts, with promising prospects for further expansion fueled by strategic investments and increasing demand from both domestic and international markets. Despite challenges, the sector remains a vital contributor to Cambodia's economic development and industrial diversification.
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