According to Bangkok Post, Siam Cement Plc (SCG), a leading Thai industrial conglomerate, has announced an additional $500 million investment in the Long Son Petrochemical Complex (LSP) in Ba Ria-Vung Tau province, Vietnam. This supplementary investment is expected to raise the total project capital to $5.6 billion by 2027.
Notably, Mr. Kulachet Dharachandra, CEO of SCG Vietnam, revealed that since its restart in August, the Long Son Petrochemical Complex has already increased its operational capacity to over 85%. Previously, in the fall of last year, the complex had to suspend operations due to low market demand and declining profit margins in the chemical sector.
Analysts attribute the high operational capacity post-restart to recent changes in import tax policies. Specifically, Decree 199/2025/NĐ-CP, effective from July 8, 2025, imposed a 2% import tax on certain plastic resin groups. This policy applies to HS codes for HDPE (3901.20.00) and LLDPE (3901.10.92, 3901.40.00) resins, which are key products of the Long Son plant.
The new import tax is seen as a crucial support for Vietnam’s polyolefin production industry, shielding it from foreign competition. As LSP is a major domestic producer of these products, the policy has enabled SCG to maintain stable operations and expand investments, despite reporting a net loss of 669 million baht in Q3 in Thailand.
Mr. Kulachet Dharachandra – CEO of Long Son Petrochemical Company – Photo: DONG HA
Regarding business strategy, SCG representatives emphasized that Vietnam is a key production hub. Mr. Kulachet affirmed that Long Son will become a central production site for core chemical products. The plan is to export 50% of the complex’s output to markets like China, Europe, and Australia, while the remaining 50% will cater to domestic demand in Vietnam.
Currently, SCG holds a $7 billion investment portfolio across 28 projects in Vietnam. The conglomerate is also shifting cement and construction material production for export to Vietnam to optimize costs and leverage free trade agreements (FTAs).
Financially, SCG’s leadership projects that the Long Son Petrochemical Complex will achieve $1.5 billion in revenue by 2026 when operating at full capacity, with positive cash flow expected from 2028. On the stock market, SCG shares have risen by 10.7% year-to-date, contrasting with a 9.3% decline in Thailand’s overall market index.
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