CDC first vice-president Sun Chanthol visits the Wanli Tyre factory in Guangzhou, China on October 21. SUN CHANTHOL VIA FB
One of China’s largest car tyre manufacturers has confirmed it will conduct a detailed study and examine the possibility of opening a brand-new, state-of-the-art tyre factory in Cambodia, according to the Council for the Development of Cambodia (CDC).
Wanli Tire Co Ltd is a subsidy of Guangzhou Industrial Investment Holdings Group (GIIHG), headquartered in the Chinese port city of Guangzhou, northwest of Hong Kong. GIIHG is a member of the Fortune 500, a ranked list of the world’s largest companies.
Deputy Prime Minister and CDC first vice-president Sun Chanthol met with GIIHG general manager Jing Guangjun during his official visit to Guangzhou, said a CDC October 22 press release.
Chanthol highlighted the growth of the Cambodian economy over the past 20 years – which has grown by an average of 7% – during their October 21 meeting.
He also highlighted recent investment and development in the Kingdom’s transport and logistics infrastructure, including the new Siem Reap-Angkor International Airport (SAI) and the under-construction Takhmao International Airport – located just outside the capital – as well as in-depth studies of the Phnom Penh-Sihanoukville railway, Phnom Penh-Poipet railway and the Deep Sea Port expansion project.
The CDC explained that by drawing attention to Cambodia’s ongoing infrastructure projects and progress, the Deputy Prime Minister aimed to attract more foreign investment.
He also described how other Chinese investors have found success in manufacturing tyres in Cambodia’s special economic zones (SEZs).
GIIHG has announced that they will conduct a detailed examination into the establishment of a new manufacturing facility in the Kingdom.
Cambodia Chamber of Commerce (CCC) vice-president Lim Heng said the growth of tyre factories – or other industries which require rubber – is what Cambodia needs most. The Kingdom, he added, is home to many rubber plantations but the raw material is predominantly exported.
He noted that the total area of rubber plantations has declined slightly, due to the falling market prices and other fluctuations caused by exporters. He suggested that a new tyre manufacturing factory within the Kingdom may allay growers’ fears of unpredictable returns.
“Most of our rubber is exported as a raw material. This means we lose out on any added value, and we are also dependent on the prices offered by export agents, most of them Vietnamese. If they do not buy, farmers have no cash flow,” he explained.
According to the Ministry of Commerce, in the first nine months of 2023, Cambodia exported more than $333 million of rubber, an increase of more than 22 per cent compared to the same period last year.
