Hanoi: SCG is taking significant steps to enhance Vietnam's role as a crucial production base and strategic market, as part of its "Regional Optimization" strategy. This approach emphasizes Vietnam as a second home for SCG, focusing on domestic consumption and export capabilities to the global market. The company is also progressing with its project to increase ethane raw material at its LSP plant, aiming to commence operations as scheduled. Meanwhile, SCG anticipates that its premium plastic pipe and fitting business (BMP) will expand in line with Vietnam's GDP growth.
According to Thai News Agency, Mr. Kulchet Tharachan, the Country Director for Vietnam at SCG and Executive Vice President of SCGC, outlined that the Regional Optimization strategy integrates business management across ASEAN. This strategy leverages each country's strengths, such as production bases, resources, and economic potential, to enhance efficiency and create competitive advantages in cost, marketing, and sustainability. SCG is currently implementing this strategy in Vietnam, Indonesia, the Philippines, Cambodia, Laos, and Myanmar, with each country playing a pivotal role in bolstering SCG and its subsidiaries for sustainable long-term growth.
Vietnam is a strategic focus for SCG due to several key factors, including a domestic market exceeding 100 million people, rapid infrastructure development, competitive production costs, and supportive government policies for investment and exports. In 2024, Vietnam's economy experienced a 7.1% growth, achieving a GDP of US$476 billion and attracting over US$38.2 billion in foreign investment.
SCG, along with its 28 subsidiaries, has invested over US$7 billion in Vietnam, accounting for 28% of SCG's total assets. These investments span chemicals, cement, construction materials, packaging, and logistics businesses nationwide, facilitating integrated cost management and supply chains. The company capitalizes on the strengths of both Thailand and Vietnam to boost competitiveness, including:
- The transfer of technology, safety standards, and factory management expertise from Thailand to Vietnam.
- Utilizing Vietnam as an export base, benefiting from Free Trade Agreements (FTA) with more than 60 countries, such as exporting PRIME GROUP's Glazed Porcelain tiles and low-carbon cement to the United States.
- Enhancing regional supply chain efficiency by coordinating production and marketing among the three Crackers (ROC-MOC-LSP), allowing Thailand to focus on high value-added (HVA) products while LSP concentrates on serving the vast Vietnamese market and exporting globally.