SCG is advancing its ‘Regional Optimisation’ strategy by positioning Vietnam as a key production base to support domestic consumption and exports to global markets.
The company is showcasing the strengths of Long Son Petrochemicals, Vietnam’s first fully integrated petrochemical complex, and Binh Minh Plastics, the country’s leading manufacturer of premium plastic pipes and fittings. Together, these businesses reinforce SCG’s growth in ASEAN while driving social and environmental sustainability.
Kulachet Dharachandra, Country Director – Vietnam at SCG and Executive Vice President of SCGC, said, “Regional Optimisation is an integrated business strategy across ASEAN that leverages the collective strengths of each country, production bases, resources, and economic potential, to enhance efficiency and create advantages in cost, market reach, and sustainability.
“SCG is implementing this strategy across Vietnam, Indonesia, the Philippines, Cambodia, Lao PDR, and Myanmar, where each country plays a vital role in strengthening SCG and its subsidiaries while supporting long-term sustainable growth.”
Vietnam is a strategic country for SCG, supported by several key factors: a domestic market of more than 100 million people, rapid infrastructure development, competitive production costs, and government policies that promote investment and exports.
In 2024, Vietnam’s economy grew by 7.1%, with its gross domestic product reaching $476 billion and foreign direct investment exceeding $38.2 billion.
Dharachandra explained that SCG and its 28 subsidiaries invested more than $7 billion in Vietnam, representing 28% of SCG’s total assets, with operations spanning chemicals, cement, building materials, packaging, and logistics nationwide, enabling fully integrated cost and supply chain management.
SCG also leverages the combined strengths of Thailand and Vietnam to enhance the competitiveness of the Group through initiatives such as transferring expertise in technology, safety standards, and plant management from Thailand to Vietnam; leveraging Vietnam’s position as an export base, supported by its extensive network of more than 60 Free Trade Agreements, enabling the export of products such as PRIME GROUP’s glazed porcelain tiles and low-carbon cement to the United States; and enhancing regional supply chain efficiency, particularly in the chemicals business, where production and marketing can be jointly optimized across the three crackers.
This allows Thailand to focus on producing high-value-added products, while LSP focuses on meeting Vietnam’s large domestic demand and supplying global markets.
Dharachandra said, “The petrochemical industry continues to face volatility and challenges due to global oversupply, while the world economy has yet to fully recover. Nevertheless, SCGC is continuing to advance and accelerate strategic adjustments to navigate these challenges by strengthening its competitiveness and leveraging key advantages.
“One of these advantages is SCGC’s diversified production base across three ASEAN countries, Thailand, Vietnam, and Indonesia, with LSP as Vietnam’s first fully integrated petrochemical complex. LSP significantly enhances SCGC’s long-term competitiveness at both regional and global levels.”
He added, “With LSP’s flexible production technology, the plant can switch between naphtha and propane feedstock depending on market conditions (Flexible Feedstock). For example, with propane prices currently lower than naphtha, LSP has adjusted its production plan by increasing the proportion of propane feedstock to 70% to optimise costs and strengthen competitiveness.”
“In addition, LSP has also adopted advanced technologies and technical expertise transferred from Thailand to further enhance environmentally responsible operations. These include Vietnam’s first large-scale enclosure ground flare system for smokeless gas disposal, a high-efficiency wastewater treatment system, and technologies designed to reduce air emissions, reinforcing LSP’s ambition to become a model for environmentally sustainable plant operations.”
“As for the progress of the LSP Enhancement Project (LSPE), the project is progressing according to plan. Construction of two ethane storage tanks is currently underway, along with process modifications to accommodate ethane feedstock. Overall progress has exceeded 20%, and completion is expected by the end of 2027,” Kulachet added.
In addition to its petrochemical operations in Vietnam, another business that reinforces SCGC’s strengths is the plastic pipes and fittings segment under Binh Minh Plastics (BMP), a listed company on the Ho Chi Minh Stock Exchange. BMP operates a nationwide distribution network of more than 2,500 stores across Vietnam.
