SCG Vietnam posts strong sales growth
|Thailand’s SCG Group said its business in Vietnam had fared well with last year’s sales revenue surging 11% year-on-year, encouraging the group to strengthen investment into the nation.
SCG Group in a statement reported revenue of some VND1.7 trillion or US$83 million for last year's fourth quarter, a pickup of 15% over the year-ago period. It attributed the sales increase to the rising demand for packaging paper products.
As such, SCG’s total sales in Vietnam reached around VND6.74 trillion or US$325 million in all 2012, rising 11% year-on-year.
SCG has recently cut a deal with Prime Group Co., the nation’s largest brick and tile producer, to acquire an 85% stake in the latter with a total value of VND4.8 trillion or US$234 million.
SCG said it is expanding investment in ASEAN, focusing on Indonesia, Vietnam and Myanmar. It will also pour a budget of roughly VND1.43 trillion or US$70 million into researching and developing products and services with highly added values.
The group has since last year acquired and purchased equities of four local entities. These include a 99% stake in Buu Long Investment and Industry JSC in Dong Nai Province, and majority stakes in Thieu Nien Tien Phong Plastic Co., Binh Minh Plastic Co. and Prime Group.
Since its entry into Vietnam 21 years ago, SCG has had 17 subsidiaries here with assets totaling more than US$370 million and revenue at US$300 million. The group is looking to invest in other areas in Vietnam, including an oil refinery complex in the south which will cost an estimated US$4.5 billion.
SCG as one of the leading industrial groups in South East Asia is active in a wide range of industries, especially in oil, paper, cement, building materials and distribution.
Source: The Saigon Times Daily