SCG Reinforces Vietnam’s Role as Regional Growth Hub

SCG recently announced its 2025 operating results at a press conference in Bangkok, highlighting disciplined financial management amid a challenging global and regional economic environment. The group reported revenue of US$15.1 billion (VND398.9 trillion), down 3% year-on-year, and adjusted EBITDA (cash flow from core operations, excluding extraordinary items) of US$1.7 billion (VND43.1 trillion), up 6% compared to 2024, while reducing debt by US$428 million (VND11.3 trillion).

President and CEO Thammasak Sethaudom shares insights on SCG’s 2025 business performance and its strategic direction for 2026

Actual sales declined by 3%; however, because the Thai baht appreciated by around 7%, sales appeared higher when reported in USD.

These results reflect decisive actions taken throughout the year to streamline operations, exit underperforming businesses, and implement comprehensive cost-saving initiatives, delivering total annual savings of approximately US$131 million (VND3.6 trillion).

Looking ahead, SCG introduced its 2026 strategic direction under the theme “Intensified - Strengthened - Reinforced - Resilient.” The focus will be on maintaining strong financial discipline, building organizational strength, and investing in products that deliver higher value and lower environmental impact, while positioning Vietnam as a key base for regional production and exports.

“2025 was a challenging year, marked by slower global growth, geopolitical uncertainty, and volatile energy prices, particularly for the petrochemical industry. Despite these pressures, SCG remained focused on cash flow management and operational efficiency, allowing us to stay healthy and reduce debt compared to the previous year.

As we move into 2026, we expect market conditions in the chemicals business to stabilize as new global supply slows. While challenges remain across many markets, Vietnam continues to show encouraging economic momentum. We see Vietnam not only as a growing domestic market, but also as a strategic operational base to support regional and global customers,” said Thammasak Sethaudom, CEO of SCG.

This approach reflects SCG’s long-term commitment to Vietnam - supporting economic growth, strengthening industrial capability, and creating sustainable value for employees, partners, and communities, even in an uncertain global environment.

SCG Vietnam and its member companies are recognized as Sustainable Development Enterprises 2025 for their consistent ESG strategy and proactive Net Zero initiatives

Vietnam business highlights

In Vietnam, SCG delivered stable performance in 2025, with total sales of US$1.7 billion (VND43.1 trillion), up 0.8% year-on-year. A key milestone during the year was the Long Son Petrochemicals (LSP) complex resuming operations in August 2025, marking an important step in strengthening SCG’s industrial base in Vietnam.

With 28 subsidiaries nationwide, SCG Vietnam contributed more than US$31.5 million (VND788.8 billion) to the state budget in 2025, reaffirming its long-term commitment to supporting Vietnam’s economic and industrial development.

“Our 2025 performance reflects SCG’s ability to stay resilient in a challenging environment, while remaining firmly committed to Vietnam’s sustainable growth. By focusing on ESG-driven operations and working closely with our partners, we are building a stronger foundation for long-term competitiveness - while creating real value for the economy, communities, and the environment,” said Kulachet Dharachandra, Country Director of SCG in Vietnam.

Strategic priorities in Vietnam for 2026

SCG has set four key strategic priorities for Vietnam in 2026.

First, it will intensify financial discipline by maintaining healthy cash flow and disciplined capital investment, while continuing to reduce costs through improved energy efficiency, automation, and the use of new technologies.

Second, it will strengthen organizational capabilities by advancing the Regional Optimization Strategy and leveraging synergies between Thai and Vietnamese operations, including shared markets, complementary product portfolios, and best practices. People development remains a priority, supported by the wider use of digital tools, robotics, and AI to raise productivity.

Third, it will reinforce long-term growth engines by capturing market potential driven by Vietnam’s ambitious GDP growth targets. A key focus is the US$500 million Ethane Feedstock Enhancement (LSPE) Project at LSP, aimed at improving feedstock flexibility and cost competitiveness. The project is progressing as planned and is expected to be completed by the end of 2027.

Finally, SCG will stay resilient and ready by continuously assessing opportunities and risks to ensure rapid responses to changing business and economic conditions.

The LSP Enhancement Project (LSPE) at the Long Son Petrochemical Complex is progressing as planned and is expected to be completed by the end of 2027, reinforcing SCG’s long-term growth strategy

Commitment to ESG and sustainability

Alongside operational progress, SCG reinforced its sustainability leadership through active participation in industry forums and the sharing of best practices. These efforts were recognized in 2025, with SCG and 7 member companies, including Vina Kraft and 6 companies under Prime Group - honored among the Top 100 Sustainable Enterprises 2025.

In 2025, Duy Tan Plastics also received a hat-trick of sustainability awards, including Green Enterprise of Ho Chi Minh City by Sai Gon Giai Phong Newspaper, Vietnam ESG Awards - Enterprises Pioneering in Circular Economy by Dan Tri Newspaper, and National Green ESG Enterprise by the Institute for Sustainable Development Research. Binh Minh was also honored as a Green Enterprise of Ho Chi Minh City by Sai Gon Giai Phong Newspaper.

Beyond awards, SCG’s ESG efforts delivered tangible benefits to people and communities. The company provided VND1.7 billion in scholarships to 160 students through the SCG and LSP Sharing the Dream programs, and offered vocational training to 50 students with disabilities through the SCG Learn to Earn project, in collaboration with DrD and HaliCare.

SCG remains committed to delivering sustainable returns to shareholders while strengthening long-term competitiveness and sustainability in every community where it operates.

By Van Luong, Vietnam Business Forum