SCG-backed $5.4 bln petrochemical complex in southern Vietnam set to restart in late August

The $5.4 billion Long Son Petrochemicals Complex (LSP) in southern Vietnam may resume operations as early as late August or early September following a nearly one-year hiatus.

The timeline was disclosed by the project’s investor, Thai conglomerate Siam Cement Group (SCG), in its operational update for the first half of 2025.

According to the report, the company has prepared equipment and staffing for full-scale operations.

The planned resumption also aims to take advantage of a new import duty on polypropylene (PP) and polyethylene (PE), which will take effect on July 8, raising the rate from 0% to 2%.

However, the revised tariff remains well below the 10% rate proposed by SCG, which has argued that a significantly higher duty would help protect Vietnam’s infant petrochemical industry and promote long-term sustainability by reducing reliance on foreign suppliers.

In the first half of 2025, SCG posted revenue of THB22.4 billion ($688.8 million) in Vietnam, accounting for 9% of its global total, making the country its second-largest market.

The Long Son Petrochemicals Complex was initially located in Ba Ria-Vung Tau province, which was recently merged with neighboring Ho Chi Minh City and Binh Duong province to form the new HCMC.

The plant has a total designed capacity of 1.4 million tons of plastic resins and various other plastic products annually. At full capacity, LSP is expected to generate $1.5 billion in annual revenue and contribute approximately $150 million to the state budget.

However, just 15 days after commencing operations on September 30, 2024, the facility suspended production due to broader market challenges. LSP stated that operations would resume once profit margins improve.

In February, SCG announced an additional investment of $500 million to upgrade the facility. The plan includes shifting to ethane as a feedstock, either partially or fully replacing naphtha and propane. The upgrade is expected to take 2.5 years, with completion slated for the end of 2027.