Thai cement giant to make Vietnam ‘top priority’ market
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Siam Cement Group (SCG), one of Thailand’s leading industrial companies, has earmarked Vietnam as its top priority market in upcoming years.
Once a petrochemicals plant comes online in southern Vietnam, the company anticipates revenue from Southeast Asia excluding Thailand would rise to 35 percent of the total from the current 26 percent, its CEO Roongrote Rangsiyopash told Nikkei.
“We have several projects ongoing, some big ones like a chemicals complex in northern Vietnam. That one, fortunately, has had no impact from the pandemic,” he added.
The group has seen a trend of localized production within ASEAN and will make this a focus.
“For the next few years, I foresee Vietnam would be our top priority,” Roongrote stated.
SCG recently signed an agreement to buy 70 percent of Duy Tan Plastics, the largest manufacturer of rigid plastic packaging products in Vietnam, bringing its number of packaging companies in the country to eight.
The group started investing in Vietnam in 1992. It has over 20 subsidiaries in Vietnam in the cement and building materials, chemicals and packaging industries. It has been investing in the packaging industry for over a decade.
Questions & Answers
Q.Which specific sectors in Vietnam is Siam Cement Group expanding its operations into?
Which specific sectors in Vietnam is Siam Cement Group expanding its operations into?
Siam Cement Group is expanding its presence in Vietnam across several industries. The company has significant investments in cement and building materials, chemicals, and the packaging sector, where it recently acquired a majority stake in a plastics manufacturer.
Q.How will the petrochemicals plant in southern Vietnam affect SCG’s overall revenue from Southeast Asia?
How will the petrochemicals plant in southern Vietnam affect SCG’s overall revenue from Southeast Asia?
Once the petrochemicals plant in southern Vietnam becomes operational, Siam Cement Group expects its revenue from Southeast Asia, excluding Thailand, to increase. This segment's contribution to total revenue is projected to rise from the current 26 percent to 35 percent.
Q.When did Siam Cement Group begin its investments in the Vietnamese market?
When did Siam Cement Group begin its investments in the Vietnamese market?
Siam Cement Group first started investing in Vietnam in 1992. The company has since established a significant presence, with over 20 subsidiaries operating within the country across various industrial sectors.
Q.What is the primary reason for Vietnam becoming Siam Cement Group's top priority market?
What is the primary reason for Vietnam becoming Siam Cement Group's top priority market?
Vietnam is becoming SCG's top priority market due to its ongoing projects, including a large chemicals complex, and a trend of localized production within ASEAN. The company sees significant growth potential and strategic importance in the country.
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