VietNamNet Bridge - Sanan Angubolkul, Chair of the Thailand-Vietnam Business Association, has called Vietnam the ‘darling of the world’, meaning that it has become quite attractive to foreign investors.

LafargeHolcim has changed hands, for example. The buyer that acquired a 65 percent of stake in LagargeHolcim Vietnam from the Swiss owner was Siam City Cement Public Co (SCCC), a conglomerate from Thailand. The deal was worth 867 million Swiss francs, or $884 million.

With the deal, SCCC owns one general and four cement grinding plants with total capacity of 6.3 million tons a year, and seven concrete plants in the south which has allowed it to become the largest concrete manufacturer.

Holcim Vietnam was established in 1994 as a foreign invested enterprise with the largest capital in Vietnam ($234 million), of which Holcim Group holds 65 percent and the Vietnam Cement Corporation (Vicem) 35 percent.

With the Thai presence in the cement industry, Vietnamese cement manufacturers will meet difficulties, especially oversupply.

SCCC is the second largest cement manufacturer in Thailand. With 45 years’ experience, SCCC not only has cemented its position in Thailand, but has reached out to a lot of regional countries, including Indonesia, Cambodia, Bangladesh and Sri Lanka. The conglomerate reported revenue of $908 million in 2015.

Not long ago, Siam Cement Group (SCG) signed an agreement to buy a 85 percent stake of Prime Group worth 7.2 billion baht, or VND5 trillion.

SCG has been expanding its business in Vietnam since it came to the country in 1992, with investment capital poured into different production fields of cement, building materials, chemicals and packaging.

By the end of second quarter of the year, SCG Vietnam had the total assets worth VND19.177 trillion, an increase of 9 percent over the same period last year. 

The acquisition deal will help SCG stay firmly in the first position of the list of the world’s largest tile manufacturers, because Prime Group itself is the fifth largest manufacturer worldwide and the leading building material manufacturer in Vietnam with 20 percent of the market share. Meanwhile, SCG has up to 200 subsidiaries and has  annual revenue of $13.7 billion.

The Thai building material industry has been penetrating the world market for a long time. Two of its advantages are high quality and fast shipping.

Experts have warned that with the Thai presence in the cement industry, Vietnamese cement manufacturers will meet difficulties, especially oversupply.

Economists commented that Thais have been taking rapid-fire steps towards the 90 million consumer market. 

Before cement, Thai jumped into the lucrative retail market. Big C and Metro Cash & Carry, two large retail markets, fell into Thai hands.

Thai Minister of Foreign Affairs Don Pramudwinai predicted that Thailand would be among the top 10 foreign investors in Vietnam.


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