“SCG Vietnam Country Director: ‘We’re Not Taking Over Vietnamese Businesses; It’s a Marriage'”

After more than three decades in Vietnam, SCG Group (Thailand) has become a major player in Vietnam’s foundational industries, thanks to high-profile M&A deals with leading companies like Nhựa Bình Minh, Duy Tân, and Prime Group.

However, SCG’s journey has not been without challenges, particularly with the $5 billion Long Son Petrochemical Complex (LSP) project, which recently resumed operations after a hiatus due to market difficulties.

Mr. Kulachet Dharachandra, SCG’s Country Director in Vietnam and CEO of LSP, shares insights into this journey.

With over 30 years in Vietnam, SCG’s assets here now account for 27% of the group’s total assets. What do you consider the strategic turning point in SCG’s journey?

Mr. Kulachet Dharachandra: Vietnam has become SCG’s “second home” and a key regional hub. To date, we’ve invested over $7 billion, making us one of Vietnam’s top FDI investors, primarily in greenfield projects like the $5 billion Long Son Petrochemical Complex (LSP) and Vina Kraft Paper.

The decision to develop LSP 15–17 years ago was a pivotal moment. It’s not only SCG’s largest investment but also a nationally significant milestone and Thailand’s biggest investment in Vietnam.

Through LSP, we aim to enhance Vietnam’s raw material self-sufficiency, reduce import reliance, and foster downstream industry growth. Once fully operational, LSP could boost SCG’s Vietnam revenue to nearly $3 billion from the current $2 billion.

Despite challenges, why did SCG restart the LSP plant in August 2025?

LSP is a long-term strategic investment, akin to a national infrastructure project. Profitability requires time and patience. SCG remains committed to its success.

The previous suspension was a tough but necessary decision due to a global petrochemical market downturn. As a new project, we paused operations for nearly 10 months to preserve liquidity and protect our workforce, as SCG has a no-layoff policy. During this time, we focused on training and upskilling through SCG Academy.

With market improvements, we restarted operations despite challenges. The resumption has been safe and efficient. We also invested an additional $500 million in a game-changing upgrade, using Ethane as a more cost-competitive feedstock, expected to complete by 2027, enhancing LSP’s competitiveness.

While short-term finances remain challenging, we’re confident in LSP’s long-term potential and remain committed to Vietnam’s growth.

What’s your outlook on Vietnam’s plastic resin market, especially with the recent import tax adjustments on PE products?

The long-term potential is clear. Vietnam needs LSP to replace imports, meet growing demand, and strengthen supply chain autonomy. With a 3 million ton/year PP demand and only 2 million tons of domestic production, including LSP, the growth potential is significant. LSP is also Vietnam’s sole PE producer.

Amid global trade risks, local production ecosystems are essential. LSP’s 15-year, $4 billion supply agreement with a US partner ensures stable feedstock and supports Vietnam-US trade relations.

The government’s 2% PE import tax adjustment is reasonable, supporting domestic petrochemical firms without significantly impacting downstream producers.

What factors make a Vietnamese company attractive for SCG’s investment?

We view these as “Merger & Partnership” (M&P) relationships, akin to a marriage based on shared vision and long-term goals. We aim to enhance potential through knowledge transfer, leadership development, ESG standards, and global market access.

Financials are important but not the sole factor. We believe in growth potential and long-term partnerships. Our goal is to elevate Vietnamese brands globally, making them sources of national pride.

There are concerns about losing Vietnamese brands post-acquisition. How does SCG address this?

While differences may arise, our philosophy remains consistent: mutual learning, growth, and sustainable value. For instance, Nhựa Bình Minh remains a successful partnership. We respect local heritage and identity, as seen in naming LSP after its location, not SCG.

How has SCG enhanced Vietnamese companies post-merger? Can you share an example like Duy Tân Plastics?

We focus on co-development and innovation. SCG Academy offers leadership and skills training. Companies like Prime Group, Nhựa Bình Minh, and Duy Tân have expanded capacity and launched innovative products.

With Duy Tân, we’re co-developing new resins and supporting automation and training. Our approach is to strengthen, not overshadow, Vietnamese brands, fostering national pride and sustainable growth.

Thank you for your insights!