Thai packaging firm eyes $353-mln expansion in Vietnam

Thai company SCG Packaging has announced plans to invest $353 million to expand in Vietnam.

It will build a new plant in the northern province of Vinh Phuc, which will increase its capacity by 74 percent to 870,000 tons of packaging paper a year when it goes on stream in 2024.

It will be operated by Vina Kraft Paper, a joint venture with Japan’s Rengo Company in which SCGP holds 70 percent.

Vietnam is both a big consumer and exporter in the region, making it a big draw for multinational investors, CSGP’s chief executive, Wichan Jitpukdee, said.

The country’s demand for packaging paper and related products is expected to grow at 6-7 percent a year in 2021-24, SCG Packaging estimates.