“Thai Giant SCG Tackles the ‘Perfect Storm’: Saving Trillions with Green Solutions, Investing $6.5B to Make Vietnam a Key Hub”

The Perfect Storm Prompting ASEAN Collaboration

“We are in the midst of a ‘perfect storm,’ the most complex and unstable in modern history. The question is no longer how to react, but how to ensure a livable future for the next generation,” said Mr. Thammasak Sethaudom, Chairman and CEO of SCG, in his opening speech at the ESG Symposium 2025, as reported by the Bangkok Post.

The perfect storm referred to by the leader of the century-old Thai conglomerate is a global context increasingly marked by geopolitical conflicts, economic instability, and climate crises.

The ESG Symposium 2025, themed “Green Breakthroughs Amid the Perfect Storm,” brought together leading business leaders from Thailand and internationally to propose solutions and call for action, urging regional cooperation to build a sustainable future.

International speakers share their perspectives and approaches to sustainable development at the ESG Symposium 2025 at SCG’s headquarters in Thailand. Photo: Bangkok Post

Dr. Sethaput Suthiwartnarueput, Governor of the Bank of Thailand, emphasized at the symposium: “ASEAN is not very ‘green.’ We are more carbon-intensive, more ‘brown’ than developed economies. Our economic structure is also very different: we have many small and medium-sized enterprises (SMEs), a higher proportion of informal labor. The informal sector is significant. Incomes are lower, and social safety nets are weaker. This affects the type of transition ASEAN can undertake and how we design it.”

Therefore, the governor suggested reducing the “brown” footprint—lowering carbon emissions—before fully transitioning to green. Beyond emission reduction, adaptation must be prioritized. With markets, investors, and consumers still lacking awareness, governments must take a leading role, despite implementation challenges.

At a press conference on October 2—part of the symposium series—Dr. Areeporn Aswinsupongpun, Senior Researcher at the Thailand Development Research Institute (TDRI), raised another issue: Thailand’s Energy Transition Index in 2024 was 55.8, below the global average of 56.5 and lower than its Southeast Asian neighbors.

Despite domestic capital to support private investment, Thailand’s clean energy technology remains underdeveloped, and its workforce lacks green skills.

Dr. Areeporn proposed opening the Direct PPA (Power Purchase Agreement) market to attract green capital and build green infrastructure through government-business-citizen collaboration.

Another issue raised by Dr. Noppong Theeraworn, Chairman of the Thai SME Federation, was enhancing the capacity of small and medium-sized enterprises (SMEs) for sustainable development and competitiveness. SMEs account for over 99.5% of Thai businesses and employ over 13 million people, but face challenges in accessing capital, new markets, and legal and digital skills for the green transition.

In a discussion with these experts, SCG’s Chairman stated: “SCG is ready to collaborate with partners from all sectors, including government, private sector, and citizens, to implement the recommendations from the ESG Symposium 2025 through knowledge transfer and investment in pilot projects like the PPP Saraburi Sandbox, to create a safe, sustainable future ready for upcoming changes.”

What Has SCG Done?

The call for “private sector openness” at the ESG Symposium materialized through the Saraburi Sandbox model. This public-private partnership (PPP) aims to transform Saraburi, a heavy industrial hub in Thailand, into a low-carbon city pilot.

Here, SCG and partners will test comprehensive solutions, from fuel switching in cement plants to sustainable agriculture, renewable energy infrastructure, and circular waste management.

This initiative has gained international recognition, becoming Thailand’s first and ASEAN’s third industrial cluster to join the World Economic Forum’s Industrial Transition Initiative. The Saraburi Sandbox is SCG’s effort to improve local energy transition indices.

Addressing Dr. Noppong’s challenge, SCG has directly tackled SME competitiveness through its ‘Go Together’ program, supporting over 1,300 SMEs nationwide.

The program enhances green transition capabilities by providing access to efficient technology, reducing production costs, and supporting sustainable growth.

SCG Chemicals (SCGC), one of SCG’s three pillars, made two strategic acquisitions in Europe in 2022: 70% of Sirplaste (Portugal) and 60% of Kras (Netherlands).

Sirplaste, a pioneer in plastic recycling in Portugal with a capacity of 54,000 tons/year, and Teamplas, Thailand’s leading recycler with 36,000 tons/year, enable SCGC to build a global network for high-quality post-consumer recycled (PCR) plastic pellets.

Additionally, SCGC partnered with Braskem (Brazil) to establish Thailand’s first commercial-scale bio-polyethylene (PE) plant, using agricultural products. This project leads the trend in renewable materials.

SCGC also ventured into future industries through a 2024 joint venture with Denka (Japan) to produce Acetylene Black, a high-grade conductive carbon essential for lithium-ion batteries in electric vehicles (EVs).

This move positions SCGC not only to reduce the negative impact of its current industry but also to become a key supplier in the future low-carbon economy.

Vietnam as a Strategic Investment Focus

A key strategy for SCG is focusing investment in Vietnam, its largest market outside Thailand. By September 2025, SCG’s assets in Vietnam accounted for 27% of its total assets, equivalent to approximately $6.53 billion.

The Long Son Petrochemical Complex (LSP), with a $5.4 billion investment, is Thailand’s largest investment in Vietnam. LSP is expected to become one of the region’s most modern and efficient petrochemical complexes, optimizing production costs and serving Vietnam’s fast-growing domestic market and exports.

Beyond petrochemicals, SCG Cement and Green Solutions built a low-carbon cement plant in southern Vietnam with a maximum capacity of 8,000 tons/day. SCG Decor expanded production of smart ceramic tiles and sanitaryware for domestic and European markets. In packaging, SCGP developed a closed-loop value chain from recycled paper to eco-friendly food packaging.

This strategy transforms Vietnam from a single market into an indispensable link in SCG’s global low-carbon value chain, achieving high cost efficiency.

According to the 2025 half-year financial report, SCGC optimized raw material costs and enhanced byproduct value, saving 912 million baht ($26 million). Plant efficiency improvements saved an additional 616 million baht ($18 million).

Notably, SCG Cement and Green Solutions used alternative and eco-friendly energy, saving 1.1 billion baht ($32 million). SCG Decor increased clean energy use, negotiated lower raw material costs, and optimized inventory, saving over 146 million baht ($4.2 million) annually.

SCG Smart Living deployed robots and clean energy in production, saving 105 million baht ($3 million).