Dhep Vongvanich, country executive director – Vietnam of SCG, said on Saturday that the leading Thai industrial conglomerate was determined to run a cement factory in Vietnam and would push ahead with its $4.5-billion integrated petrochemical complex here, despite the recent withdrawal of Qatar Petroleum, one of the four key partners in the project, dubbed as Long San Petrochemicals.

“Our target is that we must have a cement factory here but by when we still cannot say. We’re studying if we should invest on our own or through a joint venture,” he said.

SCG is talking with three to four potential partners to succeed Qatar Petroleum and expects to finalise the negotiations this quarter.

The startup of the Long San Petrochemicals project will be delayed by no more than six months from late 2019 to early 2020.

SCG runs 22 operations in Vietnam, including two acquired last year – Prime Group, the largest ceramic tile player in Vietnam, and Tin Thanh Packing (Batico), a flexible packaging company.

During a media interview here, Dhep said SCG now employs nearly 7,000 people in the country, including about 100 Thai staff.

He did not give comparative figures, but was quoted almost five years ago as saying that the Thai firm had nine subsidiaries, had invested $320 million and had annual sales of $280 million in the country by that time.

According to SCG’s presentation at an analysts conference in Singapore earlier this month, as of last September, Indonesia was its largest investment destination with an asset base of Bt43.8 billion, followed by Vietnam with Bt25.7 billion and Cambodia with Bt10.77 billion.

However, in the first nine months of 2015, Vietnam reported the biggest sales of Bt22.24 billion, followed by Indonesia with Bt19.65 billion, Myanmar Bt9.27 billion and Cambodia Bt8.75 billion.

With the commencement of the cement factory last quarter, Indonesia has surpassed Vietnam as the largest overseas operation by sales of the group.

“Indonesia is the largest because it has the cement plant. Because of this, we’re looking also at investing in [upstream] petrochemicals here since Vietnam still has to import all [upstream] petrochemical products.

“About 80-90 per cent of the output from our project will serve domestic demand,” he said.

SCG recently met with Vietnamese authorities to reaffirm its commitment to the Long San Petrochemicals project, and the Vietnamese government gave its full support, he said.

“Vietnam is outstanding for its stable politics, cheap energy costs and diligent people.

“Here is our opportunity while in Thailand, the real estate and construction businesses are slowing down,” he said.

Vietnam’s construction industry grew 10.8 per cent last year. With gross domestic product per capita of only $2,200, the country still offers plenty of opportunities, he added.