Thailand's SCG Group has just announced impressive business results in the Vietnamese market in 2024 with soaring revenue thanks to contributions from the Long Son petrochemical project.
Thailand's SCG Group's revenue growth thanks to contributions from the Long Son petrochemical project. In the photo: Workers operating at the Long Son plant in 2024 - Photo: NGOC HIEN
On February 7, SCG Group (Thailand) announced its business results in the Vietnamese market in 2024.
Accordingly, SCG's sales revenue in Vietnam reached a record of VND 35,140 billion (equivalent to USD 1.4 billion), up 15% compared to 2023.
The main growth driver comes from Long Son Petrochemicals Company Limited (LSP) - SCG's key project in the petrochemical sector located in Ba Ria - Vung Tau.
In the fourth quarter of 2024 alone, SCG's sales revenue in Vietnam reached VND9,180 billion (equivalent to USD363 million), up 7% over the same period last year.
SCG Group said this growth was thanks to impressive revenue from SCGC's petrochemicals business, with a highlight being the export of polyethylene (raw plastic) from Thailand to Vietnam.
In the ASEAN market (excluding Thailand), SCG achieved revenue of VND97,260 billion (US$3.88 billion) last year, up 12% year-on-year. This growth was mainly due to revenue growth from all of the group's business segments in Vietnam.
In the global market, SCG achieved sales revenue of VND 362,730 billion (USD 14,490 billion), up 2% over the previous year.
However, the company's after-tax profit reached VND4,500 billion (US$180 million), down 76% year-on-year, mainly due to the impact of Long Son Petrochemical Company Limited's operations in Vietnam and lower profit contributions from associated companies.
According to SCG, if excluding unusual factors in 2023, including the decline in asset value of cement plants in the region and profits from adjusting the fair value of investments, 2024 profits will decrease by 52% compared to the previous year.
In Vietnam, SCG has recently attracted public attention when it put into operation the $5 billion Long Son petrochemical complex in Ba Ria - Vung Tau, but then had to temporarily suspend operations at the end of 2024.
Responding to Tuoi Tre Online , an SCG representative said that the Long Son petrochemical complex "has temporarily suspended commercial operations to manage total business costs, with plans to restart when market conditions are more favorable."
SCG said the Long Son petrochemical complex will restart production when the market recovers and the complex will also receive an investment of 700 million USD to upgrade and use more competitive raw materials.
SCG is a leading multi-industry corporation in Thailand, entering the Vietnamese market in 1992. This corporation owns many Vietnamese enterprises through M&A (mergers and acquisitions). Currently, SCG has 27 member companies in the fields of construction materials, packaging and petrochemicals operating in Vietnam with more than 16,000 employees.
Some prominent enterprises in the SCG ecosystem in Vietnam include Vietnam Construction Materials Joint Stock Company (VCM), Song Gianh Cement, Buu Long, Binh Minh Plastics, TPC VINA...
In the packaging industry, SCG has a large market share in the fields of paper packaging, woven packaging, consumer packaging, food packaging, design, printing through companies such as Duy Tan, BATICO, SOVI (Bien Hoa packaging)...
SCG is also a corporation that offers many green products and reduces carbon emissions in Vietnam.
Source: https://tuoitre.vn/tap-doan-scg-cua-thai-dat-doanh-thu-len-den-1-4-ti-usd-tu-thi-truong-viet-20250207130601014.htm
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