The company is showcasing the strengths of Long Son Petrochemicals (LSP), Vietnam's first fully integrated petrochemical complex, and Binh Minh Plastics (BMP), the country's leading manufacturer of premium plastic pipes and fittings. Together, these businesses reinforce SCG's growth in ASEAN while driving social and environmental sustainability.

Kulachet Dharachandra, Country Director – Vietnam at SCG and Executive Vice President of SCGC, said, "Regional Optimization is an integrated business strategy across ASEAN that leverages the collective strengths of each country, production bases, resources, and economic potential, to enhance efficiency and create advantages in cost, market reach, and sustainability. SCG is implementing this strategy across Vietnam, Indonesia, the Philippines, Cambodia, Lao PDR, and Myanmar, where each country plays a vital role in strengthening SCG and its subsidiaries while supporting long-term sustainable growth."

Vietnam: SCG's Strategic Production Base and Market

Vietnam is a strategic country for SCG, supported by several key factors: a domestic market of more than 100 million people, rapid infrastructure development, competitive production costs, and government policies that promote investment and exports. In 2024, Vietnam's economy grew by 7.1%, with its gross domestic product (GDP) reaching USD 476 billion and foreign direct investment totaling more than USD 38.2 billion.

Kulachet continued, "SCG and its 28 subsidiaries have invested more than USD 7 billion in Vietnam, representing 28% of SCG's total assets. Our operations span chemicals, cement, building materials, packaging, and logistics nationwide, enabling fully integrated cost and supply chain management. SCG also leverages the combined strengths of Thailand and Vietnam to enhance the competitiveness of the Group through initiatives such as:

• Transferring expertise in technology, safety standards, and plant management from Thailand to Vietnam;
• Leveraging Vietnam's position as an export base, supported by its extensive network of more than 60 Free Trade Agreements (FTAs), enabling the export of products such as PRIME GROUP's glazed porcelain tiles and low-carbon cement to the United States;
• Enhancing regional supply chain efficiency, particularly in the chemicals business, where production and marketing can be jointly optimized across the three crackers (ROC–MOC–LSP). This allows Thailand to focus on producing high value-added (HVA) products, while LSP focuses on meeting Vietnam's large domestic demand and supplying global markets."

Long Son Petrochemicals (LSP): Vietnam's First Fully Integrated Petrochemical Complex

Kulachet said, "The petrochemical industry continues to face volatility and challenges due to global oversupply, while the world economy has yet to fully recover. Nevertheless, SCGC is continuing to advance and accelerate strategic adjustments to navigate these challenges by strengthening its competitiveness and leveraging key advantages. One of these advantages is SCGC's diversified production base across three ASEAN countries, Thailand, Vietnam, and Indonesia, with LSP as Vietnam's first fully integrated petrochemical complex. LSP significantly enhances SCGC's long-term competitiveness at both regional and global levels. With LSP's flexible production technology, the plant can switch between naphtha and propane feedstock depending on market conditions (Flexible Feedstock). For example, with propane prices currently lower than naphtha, LSP has adjusted its production plan by increasing the proportion of propane feedstock to 70% to optimize costs and strengthen competitiveness."

"In addition, LSP has also adopted advanced technologies and technical expertise transferred from Thailand to further enhance environmentally responsible operations. These include Vietnam's first large-scale enclosure ground flare system for smokeless gas disposal, a high-efficiency wastewater treatment system, and technologies designed to reduce air emissions, reinforcing LSP's ambition to become a model for environmentally sustainable plant operations."

"As for the progress of the LSP Enhancement Project (LSPE), the project is progressing according to plan. Construction of two ethane storage tanks is currently underway, along with process modifications to accommodate ethane feedstock. Overall progress has exceeded 20%, and completion is expected by the end of 2027," Kulachet added.

Binh Minh Plastics (BMP): Market Leader in Premium Plastic Pipes and Fittings Supporting Vietnam's Growth

In addition to its petrochemical operations in Vietnam, another business that reinforces SCGC's strengths is the plastic pipes and fittings segment under Binh Minh Plastics (BMP), a listed company on the Ho Chi Minh Stock Exchange (HOSE). BMP operates a nationwide distribution network of more than 2,500 stores across Vietnam.

Niwat Athiwattananont, Chief Executive Officer of BMP, said, "Vietnam is undergoing rapid infrastructure development, resulting in strong demand and significant growth opportunities in the construction materials sector. BMP specializes in the manufacturing and distribution of premium-grade plastic pipes and fittings for residential, industrial, infrastructure, and agricultural applications, including water supply systems, drainage, telecommunications, and construction."

"Furthermore, BMP collaborates closely with Nawaplastic Industries (NPI) in Thailand to enhance plant management efficiency through automation and robotics, as well as through knowledge sharing and technology transfer. This collaboration supports the development of high value-added (HVA) innovations, particularly within BMP's 'green' product portfolio, which has been certified with international environmental standards. These efforts elevate product quality to global benchmarks. Looking ahead, the company plans to develop additional product lines to meet emerging market needs and expand its distribution coverage across the ASEAN region," Niwat added.

Commitment to ESG

Kulachet added, "SCG places strong emphasis on advancing ESG to drive Inclusive Green Growth in Vietnam by applying expertise from Thailand to enhance production processes and promote green technologies.

• Environment: In recent years, SCG has invested more than USD 100 million in projects to improve energy efficiency and increase the use of renewable energy. The company also places strong emphasis on developing environmentally friendly products and services across all business units, such as Low Carbon Cement, to support the growing green transition in Vietnam and export markets.
• Social: SCG has implemented programs that uplift community well-being, including the Sharing the Dream scholarship initiative, which has provided more than 6,000 scholarships nationwide over nearly 20 years, and the Loving Water for the Future project, which has helped install clean-water pipelines for more than 1,500 households in remote areas.
• People: SCG is committed to developing more than 15,000 employees across Vietnam through SCG Academy and leadership-development programs such as the Management Enrichment Program, conducted in collaboration with Duke University, to build leaders equipped to navigate future challenges."

"We firmly believe that Vietnam continues to hold strong growth potential, and we are proud to contribute to the country's economic, social, and environmental development through the enduring partnership between Thailand and Vietnam. This collaboration will further strengthen the competitiveness of the ASEAN region as a whole. Our investments in LSP and BMP demonstrate SCG's capability to operate effectively amid challenges and its long-term commitment to developing a competitive and sustainable industrial landscape," Kulachet concluded.
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