The Prime Minister of Vietnam, Nguyen Xuan Phuc, has used a meeting with the head of Siam Cement Group to urge the company to expand its activities within the country.
The Prime Minister met SCG President and CEO, Roongrote Rangsiyopash, in Hanoi on 5 April and used the occasion to underline the benefits of further investment in Vietnam. In March 2017 SCG announced that it was taking a 100 per cent stake in Vietnam Construction Materials, giving the Thai firm 3.1Mta of cement capacity in the country, with scope to improve this figure through greater efficiency.
In addition, SCG has embarked on a US$4.5bn joint venture with Petro Vietnam to build the Long Son refinery.
The entry of SCG into Vietnam’s cement market follows that of its domestic competitor, Siam City Cement, which in February 2017 completed its acquisition of Holcim Vietnam’s 6.1Mta of cement capacity.
Despite concerns that Vietnamese cement capacity is running far ahead of supply, both Thai firms have now established sizeable investment positions in the country. In part, this is down to the rapid growth of domestic demand in Vietnam. According to SCG’s estimates, domestic consumption rose by eight per cent in 2015 and nine per cent in 2016.
