Thailand's SCG Packaging becomes sole owner of Vietnam's leading plastics firm Duy Tan

SCG Packaging Public Company Limited (SCGP), a subsidiary of Thailand's multi-sector giant SCG, has acquired an additional 30% stake at Duy Tan JSC, becoming the sole owner of the leading producer of rigid plastic packaging products in Vietnam.

Wichan Jitpukdee, CEO of SCGP, stated that the investment, totaling VND2,825 billion ($108.6 million), has raised SCGP’s total shareholding from 70% to 100%.

In 2021, Duy Tan Plastics Manufacturing Corporation (Duy Tan JSC) became a member of SCGP after selling 70% of its shares to the Thai company.

"This move aligns with SCGP’s strategic focus on expanding its consumer packaging business and penetrating high growth domestic markets within the ASEAN region, especially in Vietnam as a high-potential market due to economic growth and continuous inflow of foreign direct investment," SCGP said in a release on Tuesday.

"This investment is part of SCGP’s strategic plan to expand and integrate its packaging business across the ASEAN region. The company is focused on fostering business synergies to develop innovative and comprehensive packaging solutions that offer greater variety and integration," it added.

This transaction is equal to 1.98% of total assets stated in SCGP consolidated financial statements as of March 31, 2025, and when combined with those in the past six months before the date of this transaction, the total size is 2.87%, SCGP stated in a filing to the Stock Exchange of Thailand on Monday.

Ho Chi Minh City-based Duy Tan JSC, which offers leading proprietary branded products, operates five manufacturing facilities in Vietnam and offers packaging solutions, innovations, and sustainable packaging to address evolving consumer lifestyles.

Its customer base includes B2B clients such as multinational corporations and leading consumer goods manufacturers in Vietnam, as well as B2C clients.

In 2024, Duy Tan recorded revenue of VND5,381 billion ($206.86 million) and a net profit of VND578 billion ($22.22 million), with total assets of VND4,627 billion ($177.88 million), according to the release.

Wichan Jitpukdee, CEO of SCGP, in a company release in late April said that the overall ASEAN packaging industry continued to grow during Q1/2025, particularly in food and beverage and consumer packaging segments.

The outlook for the packaging industry is anticipated to continue growing in ASEAN in Q2/2025. Demand within the consumer packaging segment is expected to keep growing, driven by domestic stimulus policies, the release noted.

SCG entered Vietnam in 1992 and has since expanded aggressively through multiple mergers and acquisitions. Its subsidiary, The Nawaplastic Industries (Saraburi) Co., Ltd., currently holds a 55% stake in Binh Minh Plastics JSC (HoSE: BMP).

In packaging, SCG acquired an 80% stake in Tin Thanh Plastic Packaging (Batico) in 2015, 94.11% of Bien Hoa Packaging (Sovi) in 2020, and 70% of Duy Tan Plastics in 2021.

In the cement sector, it fully acquired StarCemt (VCM), the owner of the Song Gianh Cement Plant in the central province of Quang Binh, for $156 million in 2017. In late 2023, SCG acquired a 70% stake in Starprint Vietnam for VND676.8 billion ($27.8 million).

Currently, SCG operates 27 subsidiaries in Vietnam, employing more than 16,000 people.

The group is also the developer of the $5.5 billion Long Son Petrochemicals (LSP) complex in the southern province of Ba Ria-Vung Tau. Construction of the mega project began in 2018 and represents SCG’s largest investment in Vietnam to date.

Ba Ria-Vung Tau authorities in late May gave a green light for a $400 million investment capital hike of the complex.

Siam Cement Group (SCG) reported sales of VND7.77 trillion ($301 million) in Vietnam in Q1/2025, reflecting the country as a key market for the Thai conglomerate in Southeast Asia. SCG’s total revenue from ASEAN markets, excluding Thailand, reached VND17.97 trillion ($698 million) during the period, according to the company’s announcement.