What To Know
- SCG Decor Public Company Limited (SCGD) is confidently reinforcing its long-term growth roadmap by leveraging Vietnam as its primary manufacturing and export hub, a move designed to shield itself from the looming threat of steep US import tariffs.
- With these initiatives in motion, SCGD is positioning Vietnam not just as a production site, but as the cornerstone of its global strategy.
Bangkok Companies: Vietnam Emerges as SCGD’s Strategic Anchor
SCG Decor Public Company Limited (SCGD) is confidently reinforcing its long-term growth roadmap by leveraging Vietnam as its primary manufacturing and export hub, a move designed to shield itself from the looming threat of steep US import tariffs. While Thailand may face tariffs of up to 36% on goods exported to the United States, SCGD reassures investors and stakeholders that this impact will be negligible. Exports to the US make up less than 1% of the company’s total revenue, making the risk minimal. Instead, the company is powering ahead with its strategic realignment to Vietnam—a nation increasingly viewed as a regional production powerhouse.
SCGD focuses on using Vietnam and its new manufacturing and distribution hub.
Image Credit: SCGD
This Bangkok Companies news report underscores the company’s agile approach in responding to global market volatility. According to Mr. Nampol Malichai, CEO and Managing Director of SCGD, Vietnam offers an ideal ecosystem for scalable industrial operations. He cited the country’s robust economic growth, competitive labor costs, and advantageous demographics as key advantages. Vietnam also enjoys a favorable customs arrangement with the US, capping tariffs at 20%—a significant edge over other ASEAN peers.
PRIME GROUP Powers SCGD’s Ascent
Vietnam’s tile market leader, PRIME GROUP—part of SCGD’s portfolio—is already leading the charge with a commanding 20% domestic market share. The group recently reported a 34% jump in sales of glazed porcelain tiles year-on-year, far outpacing the stagnant growth in Thailand’s market. SCGD plans to expand operations further into southern Vietnam, capitalizing on PRIME GROUP’s established distributor network and consumer brand equity.
SCGD is also investing in alternative energy initiatives to strengthen cost efficiency and support its green agenda. Solar systems and biomass fuels are being integrated into the production infrastructure, enhancing both economic and environmental performance.
Aggressive Expansion and Product Innovation
The company is currently operating its glazed porcelain manufacturing at full throttle and has completed phase one of the expansion at its Pho Yen plant, adding 2.5 million square meters of capacity. Phase two, expected by Q3, will double this output. SCGD is also developing high-value-added tiles and large-format variants to meet rising demand in export destinations such as Australia, South Korea, Taiwan, and several European nations, where Vietnam’s cost and tariff advantages unlock new growth potential.
Simultaneously, SCGD is collaborating with leading international suppliers to co-develop premium products using cutting-edge European technologies. The company is eyeing strategic mergers and partnerships—particularly in Vietnam—to extend its footprint in both the ceramics and sanitary ware sectors. With these initiatives in motion, SCGD is positioning Vietnam not just as a production site, but as the cornerstone of its global strategy.
The company remains confident that Vietnam’s unique advantages—cost efficiency, logistics positioning, and favorable trade agreements—will provide the resilience and scale needed to sustain growth amid an increasingly protectionist global landscape. As SCGD leans into innovation, partnerships, and market expansion, it is setting a blueprint for how regional manufacturers can stay ahead of geopolitical and economic shocks.
For the latest on Bangkok Companies, keep on logging to Bangkok Business News
