Thai Siam Cement Group (SCG
) would push ahead with its $4.5-billion Long Son integrated petrochemical complex here although Qatar Petroleum - one of the four key partners in the project - has recently retreated, said country Executive Director Dhep Vongvanich.
SCG, which has already invested $700 million in Vietnam since starting up operations in 1992, is talking with three to four potential partners to succeed Qatar Petroleum and expects to finalize the negotiations this quarter, the Nation newswire cited the executive as saying.
SCG recently met with Vietnamese authorities to reaffirm its commitment to the Long Son Petrochemicals project, located in the southern province of Ba Ria-Vung Tau, and the Vietnamese government gave its full support, he said.
“About 80-90 per cent of the output from our project will serve domestic demand,” Mr. Dhep said.
The firm also plans to run a cement factory in Vietnam, the executive added. “Our target is that we must have a cement factory here but by when we still cannot say. We’re studying if we should invest on our own or through a joint venture,” he said.
“Vietnam is outstanding for its stable politics, cheap energy costs and diligent people,” said Dhep Vongvanich.
SCG runs 22 operations in Vietnam, including Prime Group, the largest ceramic tile producer in the country, and Tin Thanh Packing (Batico), a flexible packaging company, which both were acquired last year.
A tile production line of Prime Group. (Photo: vnanet.vn)
According to SCG’s presentation at an analysts conference in Singapore earlier this month, as of last September, Indonesia was its largest investment destination with an asset base of Bt43.8 billion ($1.22 billion), followed by Vietnam with Bt25.7 billion ($715 million).
However, in the first nine months of 2015, Vietnam reported the biggest sales of Bt22.24 billion ($618.7 million), followed by Indonesia with Bt19.65 billion ($546.5 million). With the commencement of the cement factory last quarter, Indonesia has surpassed Vietnam as the largest overseas operation by sales of the group, the newswire noted.