Siam Cement Group (SCG) posted a revenue of THB10.024 billion ($293.53 million) from its Vietnam operations in the first quarter of 2023, down 26.63% year-on-year.
The giant reported revenue of THB128.75 billion ($3.77 billion), an increase of 5% from the previous quarter, but a drop of 16% year-on-year, according to its Q1 financial statement.
It attributed the fall to the underperformance of SCG Chemicals due to lower product prices and volumes. Besides, the group's packaging business recorded an 8% decrease.
As a result, Vietnam leapfrogged Indonesia to become SCG’s biggest foreign market in Q1. Indonesia’s figure dropped 33% year-on-year to THB9.58 billion ($280.56 million).
Cambodia was another core market with THB3.2 billion ($93.56 million), down 15.6%. Overall, the ASEAN market excluding Thailand made up 23% of SCG’s revenue. Thailand accounted for 58% of the business’s revenue.
SCG highlighted a major activity related to its petrochemical complex project in Vietnam in the first quarter, when the giant made a commitment of THB3.18 billion ($93.18 million) for construction and installation of machinery.
Its Long Son Petrochemicals Complex in the southern province of Ba Ria-Vung Tau, is set to enter commercial operations in mid-2023. SCG is the main investor in the 464-hectare complex, which has $5.4 billion in total investment.
SCG posted a revenue of THB59.06 billion ($1.72 billion) from its Vietnam operations last year, up 21% year-on-year, according to its financial statement.
SCG is a leading Southeast Asian business in the sectors of cement-building materials, petrochemicals, and packaging, with over 200 subsidiaries and 57,000 staff. Entering Vietnam in 1992, the giant now has several subsidiaries in the country with over 16,000 staff. One of the most notable is tile company Prime Group JSC, which was acquired by the Thai giant in 2013.
In April, SCG Packaging, a subsidiary of SCG, announced the acquisition of a 70% stake in Starprint Vietnam JSC (SPV), a folding carton packaging manufacturer in Vietnam. The deal, worth THB1.53 billion ($44.92 million), is expected to be completed in the third quarter of 2023.