Hung Le
Kan Trakulhoon, president and CEO of SCG, talks about investment strategy of the group - Photo: Hung Le
Speaking at the press briefing in HCMC last Friday, Kan Trakulhoon, president and CEO of SCG, said that investment expansion in Vietnam is a step by the company to brace for the ASEAN Economic Community (AEC) in 2015.
SCG has invested over US$2.1 billion in potential markets of Indonesia, Vietnam, the Philippines, Cambodia and Myanmar over the past time. “We have plans to continue investment of US$6-8 billion in regional markets, including Vietnam, in the next five years,” Trakulhoon said.
Vietnam is the key nation in SCG’s strategy to become a leading sustainable enterprise in the ASEAN by 2015. Vietnam will raise its competitiveness when AEC is established in 2015. In addition, growing population and attractive investment environment in Vietnam will also help speed up the market, he said.
“SCG considers Vietnam as one of strategic markets to seek new investment opportunities. We will develop subsidiaries focusing on three core sectors, cement-building materials, chemistry, and paper, to meet increasing demands in Vietnam and other ASEAN countries,” Trakulhoon added.
SCG currently is focusing on acquiring domestic firms to fasten penetration into the local market. If no enterprises with feasible projects are chosen, SCG will invest in new projects in the country.
Vietnamese firms and other enterprises in the region SCG has acquired have brought about profits and operated better. Notably, acquiring an 85% stake of the local building material firm – Prime Group Joint Stock Company – has sent SCG to the leading position in the world’s glazed tile production industry.
Meanwhile, the cement factory of Buu Long Industry & Investment Joint Stock Company in Dong Nai Province suffered losses before SCG acquired most of its stake in 2011. But now, it has brought about profits for SCG.
SCG has invested in 19 enterprises in Vietnam with total asset value of over US$615 million and over 6,500 employees and most of them have operated well. This is why the group wants to further expand investment in the market, including in Long Son petrochemical complex in Ba Ria-Vung Tau Province, Trakulhoon said.
Sustainable development and human resources are the key to success of SCG. The principles have also been applied in member enterprises in Vietnam. SCG has renovated affiliates in Vietnam by applying sustainable development principles and green technologies in products and services.
Last year, SCG reported revenues of over VND6.7 trillion, up 11% against 2011, due to high demand for packaging paper. In the second quarter of 2013, the group generated revenues of over VND3.1 trillion.
Đăng ký: VietNam News
