SCG positions Vietnam as ASEAN’s manufacturing and export gateway

SCG, Thailand’s leading cement and building material giant, has identified Vietnam as a key strategic hub in its regional optimisation strategy, aimed at enhancing manufacturing capabilities and expanding its exports to global markets. 

This decision is driven by Vietnam’s rapid emergence as an economic powerhouse in Southeast Asia, while the Vietnamese government is driving industrial reforms, infrastructure development, and a shift towards a green economy, all aimed at achieving net zero carbon emissions.

To align with these efforts, SCG Decor (SCGD) has supported PRIME GROUP in expanding production capacity for high-quality tiles to meet the growing market demand. 

Furthermore, SCG’s cement and building materials division in Vietnam is accelerating the development of low-carbon cement for both domestic use and global exports, under its Green Building policy to foster sustainable growth and improve quality of life.

A strategic investment in Vietnam’s future

Kulachet Dharachandra, Country Director for SCG in Vietnam, highlighted that Vietnam is a strategically important market for SCG, with total investments exceeding US$7 billion across 28 companies, accounting for 28% of SCG's total assets.

This includes operations in chemicals, cement, building materials, packaging, and logistics, all designed to serve both domestic and export demands. He added that this investment enhances our competitive capabilities and strengthens our comprehensive production and supply chain potential.

As part of SCG’s Regional Optimisation strategy, the company is leveraging the combined strengths of Thailand and Vietnam in digital technology, artificial intelligence, automation, safety standards, plant management, and adherence to environmental, social, and governance (ESG) principles.

“Vietnam is a high-growth potential market due to its economy, government infrastructure policies, and increasing Green Building trends. It also has consumers with purchasing power for high-quality products and a large consumer base of over 100 million people, plus export potential with efficient production costs, which strengthens sustainable business growth and elevates quality of life in the region." he said.

PRIME GROUP strengthens SCGD’s path to ASEAN leadership

PRIME GROUP, the flagship business in which SCG acquired shares in 2012, is the market leader in decorative surface materials in Vietnam and will play a key role in strengthening SCGD towards its goal of becoming the ASEAN leader. 

Numpol Malichai, CEO and President of SCG Decor Plc, stated that Vietnam's economy is growing, the middle class is expanding, and the real estate market is recovering—particularly in mid-range to premium residential projects that favour Glazed Porcelain (GP) tiles—leading to a continuous increase in demand for these products.

PRIME has sales revenue of approximately 5.50 billion baht and a production capacity of around 80 million square metres. The company plans to expand GP tile production capacity from 19 million square metres in 2025 to 25.6 million square metres in 2026, with a target of 45 million square metres by 2030 to meet rising demand. 

PRIME’s ability to manage and control production costs ensures it remains competitive with world-class competitors, making it the strategic production and export base for SCGD, reinforcing the regional optimisation strategy for sustainable growth.

To adapt to market changes and maintain competitiveness, PRIME has invested in Biomass Gasifier systems at its Pho Yen plant to replace fossil fuels with biomass, reducing energy costs and greenhouse gas emissions. This initiative supports Vietnam’s role as a strategic export hub to ASEAN and beyond. 

Furthermore, PRIME’s products cater to all market segments, offering innovative designs and health and safety functions recognised throughout Asia, which supports both business growth and environmental sustainability. 

Additionally, SCGD is expanding its bathroom business and strengthening the COTTO brand in the ASEAN market, with over 44 distributors in Vietnam, while growing complementary products like adhesives and grout.

SCG Cement strengthens Vietnam as key manufacturing hub

SCG Cement and Building Materials has been operating in Vietnam for over 20 years, with 11 companies across the cement, roofing, and building materials sectors. With production bases in the central and southern regions, SCG supports domestic market growth while serving as a strategic manufacturing hub for exports to global markets.

Wichet Chuchaeu, Country Director – Vietnam, SCG Cement and Building Materials, noted that Vietnam’s economy continued to expand in 2025, driven by growth in the industrial and construction sectors. 

“Accelerated government infrastructure investment has supported a steady recovery in demand for building materials and cement, particularly low-carbon cement,” he said.

He added that this growth aligns with national policies, such as the 2050 Net Zero Emission commitment and the Green City policy, which aims for 50% of new urban areas and 10% of all cities nationwide to meet government-defined green city criteria by 2050.

The cement business has an annual production capacity of 3 million tons of clinker and 4 million tons of cement. Vietnam stands out as SCG’s most efficiently managed production-cost base in the region, positioning the country not only as a strong domestic supplier but also as a key hub for exports.

SCG currently exports both low-carbon cement and clinker to markets in America, Europe, Africa, Oceania, and Asia.

SCG Cement continues to enhance its environmental performance by using alternative and recycled materials, reducing coal consumption through alternative fuels such as biomass and refuse-derived fuel (RDF), and implementing Waste Heat Recovery (WHR) systems. 

These efforts help conserve natural resources, lower energy consumption, and reduce CO2 emissions.

“Our investment strategy and production cost optimisation under the regional optimisation concept have strengthened SCG’s competitiveness. Vietnam is now positioned as a central hub for manufacturing and exporting quality products to global markets,” Kulachet said. 

“This supports the growing demand for high-quality surface materials and environmentally friendly building materials, contributing to green city development and sustainably enhancing the quality of life for people in Vietnam and the region,” he concluded.

Vietnam emerges as a strategic economic hub

Vietnam is rapidly establishing itself as a key economic hub in Southeast Asia. With a population exceeding 106 million, 60-70% of whom are of working age, the country boasts a large consumer base that drives continuous economic growth.

The nation’s economy is experiencing robust growth, with its GDP surpassing US$327 billion in Q3 2025, expanding by 8%. This marks the highest growth rate in ASEAN for 2025, followed by the Philippines and Indonesia.

Over the next five years, while Thailand may grow at a more stable pace, Vietnam’s economy is projected to reach similar levels by 2029.

Vietnam aims for a GDP growth rate of over 10% by 2030. The country also serves as a gateway to the global market, benefiting from 17 free trade agreements with over 60 countries, making it an increasingly attractive destination for global investors. By 2027, exports are expected to account for 85% of its GDP.

Foreign direct investment (FDI) is another driving force behind Vietnam's economic expansion, with FDI reaching a record US$38.2 billion. From 2020 to 2025, the country has seen a surge in FDI registration and disbursement, with notable increases in key sectors:

• Manufacturing and processing: +45% year-to-date
• Science and technology: +105% year-to-date

The impact of US tariffs has also played a role, with the average actual tariff rate standing at 16%, lower than the previously announced 20%, making it more favourable than many regional peers. 

In the context of the China+1 strategy and friend-shoring, many businesses are relocating to Vietnam to avoid trade tensions, particularly in high-tech industries.

The Vietnamese government is pushing for industrial reforms, infrastructure development, and a transition to a green economy. These efforts include initiatives to achieve net zero emissions through renewable energy and circular economy practices, ensuring sustainable growth for the future.