Vietnam plastics: fear of being taken over by Thai people

After retailing, the plastic industry in Vietnam is one of the key acquisition of the great giants from Thailand such as Siam Cement (SCG). Some Thai businessmen are keen to buy back all state-owned shares to divest at plastics companies in 2016.

In 2016, when the state recovers investment capital in many plastics enterprises, the total investment of the plastics industry will continue to change drastically with the direction of foreign enterprises accounting for 60%. Earlier, many foreign investors have voiced their intention to buy back all shares in the state-owned divestments in plastics companies.

In particular, SCG Group is Thailand’s most significant. In the past 5 years, the group has acquired its subsidiaries through large subsidiaries in 21 Vietnamese plastic companies.

SCG has invested more than 20 Vietnamese plastic enterprises, including 20% ​​of Binh Minh plastic, 23.8% of Tien Phong plastic – the top two companies in construction plastics. Last year, SCG bought 80% stake in Tin Thanh Plastic, among the top five plastic packaging companies in Vietnam.

Especially, in the middle of last year, Tin Thanh Company suddenly sold 80% stake to SCG Group (Thailand) for $ 44.4 million. With SCG, this is the shortest way to expand production and consolidate the leading position in the packaging industry in Southeast Asia.

Not stop there, SCG and many Thai corporations are still buying plastic business in Vietnam. Some Thai businesses want to buy all the shares of the state to divest at plastics companies in 2016. Therefore, it is certain that in the coming time, Vietnam will have to witness many other acquisitions. Thai people in plastic industry and many other industries. According to published information, $ 5-6 billion is the total budget SCG is expected to use for M & A in Vietnam by 2020.

Experts said that in the coming period, the plastics industry will continue to maintain a high growth rate in both revenue and profit with a series of signed trade agreements. However, if we are not awake, we will lose this piece of cake to the Thai, as is the case for the retail sector in Vietnam.