The plastic production industry in Viet Nam has around 3,300 enterprises with total value of approximately US$18 billion.
The upstream sector of this industry includes petrochemical refineries and chemical enterprises whose main activities are to convert fossil materials into raw plastic beads.
Meanwhile the downstream sector is turning raw plastic beads into plastic products. The downstream can be divided into four main segments, including plastic packaging products, plastic building materials, plastic goods and engineering plastics.
With the deal for Duy Tan Plastic’s shares, SCG is dominating Viet Nam’s plastic industry, especially in plastic packaging products and plastic building materials. These two segments account around 61 per cent of the total market value.
In 2019, SCG Packaging founded Vina Kraft Paper in Binh Duong Province to produce paper packaging products with total capacity of 500,000 tonnes/year.
The company continued to invest in Tin Thanh Packing JSC (BATICO) in 2015. And recently SGC bought 94 per cent of Bien Hoa Packaging JSC’s stakes, with the deal worth of VND2.07 billion (US$89 million).
SCG also owns stakes in many plastic companies including Binh Minh Plastics JSC, Vietnam Construction Materials JSC, Prime Group, Viet Thai Plastchem Joint Venture Company Ltd, TPC Vina Plastic and Chemical Corporation Ltd, Viet Nam Chemtech Company Ltd and Minh Thai Plastic Material Company Ltd.
In 2018 June, SCG signed a contract to buy 29 per cent of Viet Nam Oil and Gas Group (PetroVietnam)’s shares in Long Son Petrochemical Complex Project, raising its equity from 71 per cent to 100 per cent with total investment value of 8.5 billion baht per year.
- VNN-